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Credit Assignment Agreement
"I need a Credit Assignment Agreement under German law for transferring a €2 million commercial loan from Deutsche Bank to Commerzbank, with completion scheduled for March 15, 2025, including provisions for existing security interests and debtor notification."
1. Parties: Identification of the Assignor (current creditor) and Assignee (new creditor), including full legal names and addresses
2. Background: Context of the assignment, including reference to the original credit agreement and the reason for the assignment
3. Definitions: Definitions of key terms used throughout the agreement, including 'Credit Agreement', 'Assigned Rights', 'Effective Date', etc.
4. Subject Matter of Assignment: Detailed description of the credit rights being assigned, including the exact scope of the assignment
5. Assignment: Core provision effecting the transfer of rights from Assignor to Assignee, including the legal basis under §398 BGB
6. Purchase Price and Payment: Details of the consideration for the assignment, payment terms, and payment method
7. Representations and Warranties: Assignor's confirmations regarding the validity of the assigned rights, absence of encumbrances, etc.
8. Obligations of the Parties: Specific duties of Assignor and Assignee, including handover of documents and notification requirements
9. Data Protection: Provisions ensuring compliance with GDPR and BDSG regarding personal data transfer
10. Notices: Communication requirements and contact details for formal notices between parties
11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes
12. Execution: Signature blocks and execution requirements
1. Debtor Notification: Procedures for informing the debtor of the assignment - optional if notification is handled separately
2. Security Transfer: Provisions for transferring associated security interests - only needed if security exists
3. Regulatory Compliance: Special provisions for regulated entities - required only if either party is subject to specific regulatory requirements
4. Further Assurance: Obligations to execute additional documents - included for complex assignments
5. Severability: Standard clause on partial invalidity - recommended but not mandatory under German law
6. Confidentiality: Specific confidentiality obligations - needed for sensitive commercial arrangements
7. Third Party Rights: Provisions regarding rights of third parties - needed if third party interests are affected
1. Schedule 1 - Details of Assigned Credit: Detailed description of the credit being assigned, including amount, interest rate, maturity
2. Schedule 2 - Original Credit Agreement: Copy or key terms of the underlying credit agreement
3. Schedule 3 - Payment Details: Bank account and payment processing information
4. Schedule 4 - Form of Notice to Debtor: Template for debtor notification if included in agreement scope
5. Schedule 5 - Security Documentation: Details of any security interests being transferred
6. Appendix A - Power of Attorney: If required for execution of additional documents or debtor notification
7. Appendix B - Regulatory Approvals: Copies of any required regulatory consents or approvals
Authors
Banking
Financial Services
Insurance
Investment Management
Private Equity
Asset Management
Debt Collection
Commercial Lending
Real Estate Finance
Corporate Finance
Trade Finance
Legal
Finance
Credit Risk
Portfolio Management
Compliance
Treasury
Investment
Debt Collection
Corporate Finance
Restructuring
Transaction Management
Legal Counsel
Finance Director
Credit Manager
Portfolio Manager
Risk Officer
Compliance Officer
Treasury Manager
Investment Manager
Debt Collection Manager
Corporate Finance Manager
Senior Banker
Restructuring Manager
Transaction Manager
Chief Financial Officer
General Counsel
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