Debt Assignment Agreement Template for Austria

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Key Requirements PROMPT example:

Debt Assignment Agreement

"I need a Debt Assignment Agreement under Austrian law to transfer a €500,000 commercial loan from our investment firm to a third-party investor, with completion scheduled for March 15, 2025; the debt is secured by commercial property and we need to include security transfer provisions."

Document background
A Debt Assignment Agreement is a crucial legal instrument used in Austrian business and financial transactions when one party wishes to transfer its rights as a creditor to another party. This document, governed by Austrian law (particularly the ABGB), is commonly used in debt trading, portfolio sales, corporate restructuring, or business acquisitions. It must detail the assigned debt, specify the transfer terms, address notification requirements to the debtor, and handle any associated security interests. The agreement is particularly important in the Austrian market as it must comply with specific local law requirements regarding assignments (Zession), including formal requirements, consumer protection considerations if applicable, and data protection regulations. It's essential for documenting the chain of title in debt ownership and ensuring the enforceability of the assigned rights.
Suggested Sections

1. Parties: Identification of the Assignor, Assignee, and original debtor (if party to the agreement)

2. Background: Context of the original debt and the reason for assignment

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter of Assignment: Detailed description of the debt being assigned, including amount, origin, and any existing security

5. Assignment: Core provision effecting the transfer of the debt from Assignor to Assignee

6. Purchase Price: The consideration paid for the assignment and payment terms

7. Representations and Warranties: Assignor's warranties regarding the validity and status of the debt

8. Completion: Steps to be taken to complete the assignment, including notifications and registrations

9. Further Assurance: Obligations to execute additional documents or take further steps if needed

10. Notices: Process for giving formal notices under the agreement

11. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction

Optional Sections

1. Security Transfer: Required when existing security interests are being transferred with the debt

2. Data Protection: Include when personal data processing is involved, especially with consumer debtors

3. Interest and Costs: Include when specific arrangements for accrued/future interest need to be addressed

4. Consumer Protection Provisions: Required when one party is a consumer under KSchG

5. Multiple Debts: Include when the assignment covers multiple debts or a portfolio

6. Regulatory Compliance: Include when assignment involves regulated entities or requires regulatory approvals

7. Confidentiality: Include when parties need to keep assignment details confidential

Suggested Schedules

1. Schedule 1 - Debt Details: Detailed description of the assigned debt(s), including account numbers, amounts, and payment history

2. Schedule 2 - Security Documents: List and copies of any security documents relating to the assigned debt

3. Schedule 3 - Existing Notices: Copies of any relevant notices already given to the debtor

4. Schedule 4 - Form of Notice to Debtor: Template notice to inform debtor of the assignment

5. Schedule 5 - Transfer Documents: Forms of any additional transfer documents required

6. Appendix A - Original Debt Agreement: Copy of the original agreement creating the assigned debt

7. Appendix B - Power of Attorney: If required for completion actions

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Insurance

Real Estate

Corporate Finance

Debt Collection

Asset Management

Investment Banking

Private Equity

Commercial Lending

Healthcare Finance

Construction Finance

Manufacturing

Retail Finance

Relevant Teams

Legal

Finance

Credit Management

Risk Management

Compliance

Treasury

Corporate Development

Debt Collection

Investment Operations

Portfolio Management

Transaction Management

Legal Operations

Relevant Roles

Legal Counsel

Finance Director

Credit Manager

Debt Collection Officer

Investment Manager

Portfolio Manager

Risk Manager

Compliance Officer

Corporate Lawyer

Transaction Manager

Chief Financial Officer

Treasury Manager

Business Development Manager

Restructuring Officer

Legal Operations Manager

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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