Assignment Of Debt Agreement for Canada

Assignment Of Debt Agreement Template for Canada

A legal document governed by Canadian law that facilitates the transfer of debt rights and obligations from one party (the Assignor) to another party (the Assignee). This agreement ensures compliance with both federal and provincial legislation, including the Personal Property Security Act and, where applicable, the Civil Code of Quebec. It documents the terms and conditions of the debt transfer, including the purchase price, representations and warranties, and notification requirements to the original debtor. The agreement also addresses security interests, regulatory compliance, and ongoing obligations of the parties involved.

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What is a Assignment Of Debt Agreement?

An Assignment Of Debt Agreement is a crucial legal instrument used when transferring the rights to collect a debt from one party to another in Canada. This document is commonly utilized in debt restructuring, portfolio sales, corporate reorganizations, or when creditors wish to monetize their debt holdings. The agreement must comply with Canadian federal legislation (such as the Interest Act and Bills of Exchange Act) and provincial laws (including the Personal Property Security Act and, in Quebec, the Civil Code). It typically includes detailed information about the debt being assigned, purchase consideration, warranties about the debt's validity, and procedures for notifying the original debtor. The document is particularly important in maintaining clear chains of title for debt obligations and ensuring enforceability of collection rights.

What sections should be included in a Assignment Of Debt Agreement?

1. Parties: Identification of the Assignor (current debt holder) and Assignee (party receiving the debt), including full legal names and addresses

2. Background: Context of the debt assignment, including the original debt agreement details and reasons for assignment

3. Definitions: Key terms used throughout the agreement, including 'Debt', 'Original Debtor', 'Assignment Date', etc.

4. Assignment: Core provision transferring all rights, title, and interest in the debt from Assignor to Assignee

5. Purchase Price: Consideration paid for the assignment and payment terms

6. Representations and Warranties: Assignor's declarations regarding ownership, right to assign, validity of debt, absence of prior assignments

7. Covenants: Ongoing obligations of parties, including cooperation in enforcement and document delivery

8. Notice to Debtor: Requirements and process for notifying the original debtor of the assignment

9. Governing Law: Specification of applicable law and jurisdiction

10. General Provisions: Standard boilerplate including amendments, severability, notices, etc.

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

1. Security Interest: Required if the debt is secured by collateral or other security interests

2. Tax Provisions: Include when there are significant tax implications or requirements for the assignment

3. Regulatory Compliance: Needed when the debt assignment requires specific regulatory approvals or compliance

4. Further Assurance: Additional provisions for complex assignments requiring ongoing cooperation

5. Confidentiality: Include when sensitive financial information is involved

6. Assignment Restrictions: Include when there are limitations on further assignment by the Assignee

What schedules should be included in a Assignment Of Debt Agreement?

1. Schedule A - Debt Details: Detailed description of the debt being assigned, including amount, interest rate, payment terms

2. Schedule B - Original Debt Agreement: Copy of the original agreement creating the debt

3. Schedule C - Payment History: Record of payments made and outstanding balance

4. Schedule D - Security Documents: If applicable, documents relating to any security or collateral

5. Appendix 1 - Form of Notice to Debtor: Template for the notice to be sent to the original debtor

6. Appendix 2 - Assignment Registration Forms: Any required regulatory or registry filing forms

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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Banking & Financial Services

Commercial Lending

Debt Collection

Asset Management

Private Equity

Real Estate

Insurance

Manufacturing

Retail

Healthcare

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Control

Collections

Risk Management

Compliance

Corporate Development

Portfolio Management

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Collections Manager

Treasury Manager

Legal Counsel

Corporate Lawyer

Debt Recovery Specialist

Account Manager

Risk Manager

Portfolio Manager

Financial Controller

Compliance Officer

Business Development Manager

Investment 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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