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Assignment Of Debt Agreement Template for Malaysia

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Key Requirements PROMPT example:

Assignment Of Debt Agreement

"Need an Assignment of Debt Agreement for transferring a corporate loan portfolio worth RM 5 million from ABC Bank Berhad to XYZ Investment Holdings, with completion scheduled for March 15, 2025; must include provisions for multiple debtors and associated security interests."

Document background
The Assignment Of Debt Agreement is a crucial legal instrument in Malaysian commercial practice, used when transferring debt obligations and associated rights from one party to another. This document is commonly utilized in debt restructuring, portfolio sales, corporate reorganizations, or when financial institutions sell or transfer loan portfolios. It must comply with Malaysian legal requirements, particularly the Contracts Act 1950, Financial Services Act 2013, and Stamp Act 1949. The agreement includes essential details about the debt being assigned, consideration for the assignment, warranties about the debt's status, and mechanisms for the transfer. It's particularly important in ensuring clear documentation of the debt transfer chain and protecting the rights of all parties involved in the transaction.
Suggested Sections

1. Parties: Identifies and defines the Assignor (current debt holder), Assignee (party receiving the debt), and Debtor

2. Background: Explains the context of the original debt and the intention to assign it

3. Definitions: Defines key terms used throughout the agreement

4. Assignment: Core clause detailing the transfer of debt and all associated rights

5. Consideration: Specifies the payment or consideration for the assignment

6. Representations and Warranties: Assignor's warranties regarding ownership, right to assign, and status of the debt

7. Assignor's Obligations: Details the Assignor's duties in facilitating the assignment and future responsibilities

8. Assignee's Obligations: Outlines the Assignee's responsibilities and commitments

9. Debtor's Acknowledgment: Confirmation of the debt and acceptance of the assignment

10. Completion: Details of when and how the assignment will be completed

11. Notices: Specifies how formal communications between parties should be made

12. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and relevant jurisdiction

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Security: Include when the debt is secured by collateral or guarantees

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

3. Conditions Precedent: Include when assignment is subject to specific conditions being met

4. Further Assurance: Include when additional documentation or actions may be required post-assignment

5. Confidentiality: Include when parties need to maintain confidentiality about the assignment

6. Tax Provisions: Include when there are specific tax implications to be addressed

7. Assignment Restrictions: Include when there are limitations on further assignment

8. Costs and Expenses: Include when there's a need to specify who bears various transaction costs

Suggested Schedules

1. Schedule 1 - Debt Details: Detailed description of the debt being assigned, including amount, interest rate, payment terms

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

3. Schedule 3 - Payment Details: Details of consideration payment and bank account information

4. Schedule 4 - Security Details: If applicable, details of any security or collateral associated with the debt

5. Schedule 5 - Required Notices: Forms of notices required to perfect the assignment

6. Appendix A - Supporting Documents: List of all relevant supporting documents and certificates

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

Financial Services

Banking

Real Estate

Corporate Services

Investment Management

Debt Collection

Asset Management

Private Equity

Commercial Lending

Business Restructuring

Relevant Teams

Legal

Finance

Treasury

Credit Management

Risk Management

Compliance

Corporate Affairs

Debt Recovery

Portfolio Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Debt Recovery Manager

Credit Manager

Portfolio Manager

Risk Manager

Compliance Officer

Corporate Lawyer

Investment Manager

Treasury Manager

Accounts Receivable Manager

Business Development Manager

Contract Administrator

Financial Controller

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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