Deed Of Assignment Of Receivables Template for Ireland

When your business needs to transfer receivables or outstanding debts to another party in Ireland, a Deed of Assignment of Receivables provides the legal framework for this transaction. This document creates a binding transfer of your company's rights to collect specific debts, ensuring the assignment complies with Irish statutory requirements and provides legal certainty to all parties involved.

When do you need this document?

You need a Deed of Assignment of Receivables when engaging in invoice financing arrangements where a financial institution purchases your outstanding invoices at a discount. This document is essential for debt factoring transactions, allowing you to transfer your receivables to a factor who assumes responsibility for collection. Corporate restructuring scenarios often require this deed when transferring receivables between group companies or during mergers and acquisitions. Securitization transactions rely on this document to transfer pools of receivables to special purpose vehicles. You'll also need this deed when selling your business and want to transfer outstanding customer debts as part of the transaction.

Key legal considerations

The assignment must be absolute rather than conditional to satisfy the requirements of the Conveyancing Act 1881, meaning you cannot retain any interest in the assigned receivables. Written notice to the debtor is crucial for perfecting the assignment and establishing priority over competing claims. Your deed should include comprehensive warranties about the validity and collectability of the receivables to protect the assignee. Consider including detailed schedules that specifically identify each receivable being transferred, including debtor details, amounts, and due dates. The deed should address what happens if some receivables prove uncollectable and whether you provide any recourse to the assignee. Include provisions for the mechanics of collection and whether the assignment is disclosed or undisclosed to the original debtors.

Legal requirements in Ireland

Under the Conveyancing Act 1881, your assignment must be in writing and signed by you as the assignor to be legally effective. The Companies Act 2014 requires registration of the assignment with the Companies Registration Office if it creates a charge over your company's assets. Your deed must be executed as a formal deed under the Land and Conveyancing Law Reform Act 2009, requiring proper witnessing and attestation. If your business involves regulated financial activities, the Central Bank Act 1997 may require notification to the Central Bank depending on the nature and scale of the assignment. Stamp duty implications must be considered under the Stamp Duties Consolidation Act 1999, particularly for assignments involving substantial consideration. Ensure compliance with the European Union's data protection requirements when transferring customer information as part of the receivables assignment.