Deed Of Assignment By Way Of Security Template for Hong Kong

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Key Requirements PROMPT example:

Deed Of Assignment By Way Of Security

"I need a Hong Kong law Deed of Assignment By Way of Security to assign accounts receivable from my manufacturing company to ABC Bank Limited as security for a HKD 10 million term loan facility that will be signed on March 15, 2025."

Document background
The Deed of Assignment By Way of Security is a crucial security instrument in Hong Kong's commercial and financial transactions. It is primarily used when a party (assignor) needs to provide security over certain assets to secure financial obligations owed to another party (assignee), commonly in the context of loan agreements, facility arrangements, or other financing transactions. The document must comply with Hong Kong's legal requirements for creating valid security interests, including proper execution as a deed and registration where required by law. The assignment can cover various types of assets including receivables, contract rights, insurance policies, and other choses in action. The document includes comprehensive provisions for the creation, perfection, and enforcement of the security interest, as well as the rights and obligations of the parties during the security period.
Suggested Sections

1. Parties: Identification of the Assignor (security provider) and Assignee (security taker), including full legal names and addresses

2. Background: Recitals explaining the context of the security arrangement, including reference to any underlying facility or loan agreement

3. Definitions and Interpretation: Definitions of key terms used in the deed and interpretation rules

4. Assignment: Core provision creating the assignment of the secured assets as security

5. Secured Obligations: Definition and scope of the obligations being secured by the assignment

6. Representations and Warranties: Assignor's confirmations regarding ownership, capacity, and authority to assign the assets

7. Covenants: Ongoing obligations of the Assignor regarding the secured assets and maintenance of security

8. Power of Attorney: Appointment of the Assignee as attorney to perfect or enforce the security

9. Enforcement: Rights and remedies of the Assignee upon enforcement event

10. Release and Reassignment: Provisions for releasing the security and reassigning assets upon discharge of secured obligations

11. Notices: Process for giving notices under the deed

12. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and severability

13. Execution: Execution blocks meeting Hong Kong requirements for deeds

Optional Sections

1. Further Assurance: Additional obligations to perfect security or execute further documents, used when dealing with complex assets

2. Currency Provisions: Include when secured obligations are in multiple currencies

3. Tax Gross-up: Include when payments under the deed may be subject to withholding tax

4. Assignment and Transfer: Include when the Assignee may want to transfer its rights

5. Security Agent Provisions: Include when security is held by an agent for multiple beneficiaries

6. Registration Requirements: Specific provisions for registration when required by law for particular asset types

7. Insurance: Include when assigned assets require insurance coverage

Suggested Schedules

1. Schedule 1 - Assigned Assets: Detailed description of the assets being assigned as security

2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations

3. Schedule 3 - Form of Notice of Assignment: Template notice to be sent to relevant third parties

4. Schedule 4 - Form of Acknowledgment: Template acknowledgment to be obtained from relevant third parties

5. Schedule 5 - Perfection Requirements: List of specific actions required to perfect the security

6. Schedule 6 - Existing Security Interests: Details of any permitted existing security over the assigned assets

7. Appendix 1 - Related Agreements: Copies or details of related agreements referenced in the deed

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
Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Trading and Commerce

Infrastructure

Construction

Technology

Telecommunications

Energy

Healthcare

Transportation and Logistics

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretarial

Credit

Operations

Commercial

Security Administration

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Risk Manager

Commercial Director

Treasury Manager

Company Secretary

Compliance Officer

Credit Manager

Security Trustee

Loan Officer

Transaction Manager

General Counsel

Senior Legal 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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