Deed Of Assignment Loan Agreement for United Arab Emirates

Deed Of Assignment Loan Agreement Template for United Arab Emirates

A formal legal instrument governed by UAE law that documents the transfer of rights and obligations under a loan agreement from one party (the Assignor) to another (the Assignee). This deed complies with UAE Civil Code requirements and may incorporate elements of both conventional and Islamic finance principles where applicable. The document details the terms of assignment, consideration, representations and warranties, and includes provisions for regulatory compliance within the UAE jurisdiction. It serves as a binding legal document that effectively transfers the beneficial interest in a loan while maintaining the borrower's rights and obligations.

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What is a Deed Of Assignment Loan Agreement?

The Deed of Assignment Loan Agreement is a crucial document used in the United Arab Emirates when transferring the rights and obligations of a loan from one party to another. This document type is particularly relevant in scenarios involving loan portfolio sales, debt restructuring, or strategic realignment of lending positions. The deed must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), while potentially also addressing Islamic finance principles where applicable. It includes comprehensive details about the original loan, the parties involved, the terms of transfer, and any security interests being assigned. The document is commonly used by financial institutions, investment companies, and corporate entities operating in the UAE, and must be properly executed as a deed to ensure enforceability under UAE law.

What sections should be included in a Deed Of Assignment Loan Agreement?

1. Parties: Identification of the Assignor (current lender), Assignee (new lender), and Borrower

2. Background: Details of the original loan agreement and the context for the assignment

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Assignment: Core provisions detailing the assignment of rights and obligations under the loan

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

6. Effective Date: Specification of when the assignment becomes effective

7. Representations and Warranties: Statements of fact and assurances from both Assignor and Assignee

8. Assignor's Obligations: Ongoing obligations and responsibilities of the Assignor

9. Assignee's Obligations: Obligations and responsibilities assumed by the Assignee

10. Borrower's Acknowledgment: Confirmation of the Borrower's awareness and acceptance of the assignment

11. Further Assurance: Commitment to take additional steps necessary to perfect the assignment

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction details

13. Execution: Formal execution blocks for all parties to sign as a deed

What sections are optional to include in a Deed Of Assignment Loan Agreement?

1. Security Assignment: Required if any security interests are being transferred along with the loan

2. Conditions Precedent: Include when there are specific conditions that must be met before the assignment becomes effective

3. Islamic Finance Compliance: Required if the loan needs to comply with Sharia principles

4. Regulatory Compliance: Include when either party is subject to specific regulatory requirements

5. Tax Provisions: Include when there are specific tax implications that need to be addressed

6. Notices: Include when specific notice requirements for communications between parties are needed

7. Successors and Assigns: Include when future transfers need to be specifically addressed

8. Partial Assignment: Required if only part of the loan is being assigned

9. Confidentiality: Include when specific confidentiality obligations need to be imposed

What schedules should be included in a Deed Of Assignment Loan Agreement?

1. Original Loan Agreement: Copy or details of the loan agreement being assigned

2. Loan Details: Specific details of the loan including amount, interest rate, payment terms

3. Security Documents: List and copies of any security documents related to the loan

4. Form of Notice to Borrower: Template for formal notice to be sent to the Borrower

5. Required Consents: Copies of any required third-party or regulatory consents

6. Payment Details: Bank account and payment information for ongoing loan payments

7. Outstanding Amounts: Statement of current outstanding amounts under the loan

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Investment & Private Equity

Commercial Trading

Manufacturing & Industrial

Healthcare

Hospitality & Tourism

Energy & Resources

Technology & Communications

Infrastructure & Transport

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Finance

Investment

Banking Operations

Portfolio Management

Transaction Management

Relevant Roles

Legal Counsel

Finance Manager

Chief Financial Officer

Treasury Manager

Investment Manager

Loan Officer

Credit Risk Manager

Compliance Officer

Corporate Finance Director

Portfolio Manager

Debt Restructuring Specialist

Transaction Manager

Banking Operations Manager

Financial Controller

Legal Director

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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