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Assignment Of Debt Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Assignment Of Debt Agreement

"I need an Assignment of Debt Agreement for transferring a commercial loan of AED 5 million from our investment company to a local UAE bank, with the assignment to be completed by March 2025, including provisions for Islamic finance compliance and necessary regulatory approvals."

Document background
The Assignment Of Debt Agreement is a crucial legal instrument in the United Arab Emirates' commercial and financial landscape, used when one party wishes to transfer their rights as a creditor to another party. This document type is essential for debt trading, portfolio management, and corporate restructuring in the UAE market. The agreement must comply with the UAE Civil Code (Federal Law No. 5 of 1985) and relevant commercial regulations, including any applicable Sharia law principles. It typically includes detailed provisions about the debt being transferred, consideration, warranties, and necessary notifications to the debtor. The document is particularly important in the UAE's dynamic financial sector, where debt assignments are common in both conventional and Islamic finance structures.
Suggested Sections

1. Parties: Identification of the Assignor (current creditor), Assignee (new creditor), and acknowledgment of the Debtor

2. Background: Context of the original debt, relationship between parties, and purpose of the assignment

3. Definitions: Definitions of key terms used throughout the agreement, including 'Debt', 'Assignment Date', 'Original Agreement', etc.

4. Assignment: Core provision detailing the transfer of debt from Assignor to Assignee, including the exact amount and nature of the debt

5. Consideration: Details of the payment or consideration for the assignment

6. Representations and Warranties: Assignor's warranties regarding the existence, validity, and enforceability of the debt

7. Completion: Requirements and conditions for completing the assignment, including any necessary registrations or notifications

8. Further Assurance: Obligations to execute further documents or take additional actions to perfect the assignment

9. Notices: Process for serving notices under the agreement, including notification to the Debtor

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

Optional Sections

1. Islamic Finance Compliance: Required when the debt or parties are subject to Sharia compliance requirements

2. Security Transfer: Needed when the original debt is secured and the security needs to be transferred

3. Tax Provisions: Include when there are specific tax implications or requirements for the assignment

4. Regulatory Compliance: Required when the assignment needs specific regulatory approvals or notifications

5. Confidentiality: Include when parties wish to keep the assignment details confidential

6. Anti-Money Laundering: Required for high-value assignments or when parties are financial institutions

7. Partial Assignment: Include when only a portion of the debt is being assigned

Suggested Schedules

1. Schedule 1 - Details of the Debt: Comprehensive details of the debt being assigned, including payment terms, interest rates, and maturity

2. Schedule 2 - Original Debt Agreement: Copy or details of the agreement creating the original debt

3. Schedule 3 - Payment Details: Bank account and payment information for the assignment consideration

4. Schedule 4 - Form of Notice to Debtor: Template for the mandatory notice to be sent to the Debtor

5. Schedule 5 - Security Details: If applicable, details of any security or collateral associated with the debt

6. Appendix A - Required Regulatory Forms: Any forms required for regulatory compliance or registration

7. Appendix B - Powers of Attorney: If required, forms of powers of attorney for completing the assignment

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































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Relevant Industries

Banking and Financial Services

Investment and Asset Management

Real Estate

Commercial Trading

Manufacturing

Construction

Healthcare

Retail

Professional Services

Energy and Resources

Islamic Finance

Insurance

Relevant Teams

Legal

Finance

Treasury

Credit Control

Risk Management

Compliance

Commercial Operations

Investment

Debt Recovery

Islamic Banking

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Investment Manager

Credit Manager

Risk Manager

Treasury Manager

Debt Collection Manager

Commercial Director

Contract Manager

Compliance Officer

Financial Controller

Portfolio Manager

Islamic Finance Specialist

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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