Document background
The Deed of Assignment Loan Agreement is a crucial document in Nigerian secured lending practice, commonly used when property is offered as security for a loan facility. This document type is particularly relevant when a lender requires robust security over real property while advancing funds to a borrower. It serves two primary purposes: documenting the loan terms and creating a security interest through property assignment. The agreement must comply with Nigerian federal and state property laws, including the Land Use Act 1978, and typically requires governor's consent and registration with appropriate land registries. The document is essential for both commercial and residential property financing, providing lenders with enforceable security rights while protecting borrowers' interests through clearly defined terms and conditions.
