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Credit Assignment Agreement Template for Germany

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Key Requirements PROMPT example:

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."

Document background
The Credit Assignment Agreement is essential in German financial transactions where credit rights need to be transferred between parties. It is commonly used in debt trading, portfolio sales, refinancing arrangements, and restructuring scenarios. The document must comply with German Civil Code (BGB) requirements, particularly §§ 398-413 regarding assignments, and consider German banking regulations (KWG) and data protection laws (BDSG). This agreement type is crucial for financial institutions managing their credit portfolios and for investors acquiring credit positions. It includes detailed provisions about the assigned rights, purchase price, warranties, and necessary regulatory compliance measures, ensuring a legally sound transfer of credit rights while protecting all parties' interests under German law.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions



































Clauses
































Relevant Industries

Banking

Financial Services

Insurance

Investment Management

Private Equity

Asset Management

Debt Collection

Commercial Lending

Real Estate Finance

Corporate Finance

Trade Finance

Relevant Teams

Legal

Finance

Credit Risk

Portfolio Management

Compliance

Treasury

Investment

Debt Collection

Corporate Finance

Restructuring

Transaction Management

Relevant Roles

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

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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