Security Assignment Agreement for Malta

Security Assignment Agreement Template for Malta

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Security Assignment Agreement

"I need a Security Assignment Agreement under Maltese law for a tech company assigning its receivables and IP rights to a bank as security for a €5 million facility agreement dated 15 March 2025, with the security to be held by a security trustee for a syndicate of lenders."

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What is a Security Assignment Agreement?

A Security Assignment Agreement is a crucial document in secured financing transactions under Maltese law, used when a party (assignor) wishes to provide security over certain rights, receivables, or other assignable assets in favor of another party (assignee). This agreement type is commonly utilized in various financing arrangements, including project finance, asset finance, and general corporate lending. The document must comply with the requirements of the Maltese Civil Code, the Financial Collateral Arrangements Act, and other relevant legislation. It typically includes detailed provisions on the creation and perfection of the security interest, representations about the assigned rights, covenants to protect the security, enforcement mechanisms, and necessary registration requirements. The agreement's structure ensures its effectiveness under Maltese law while considering any cross-border implications, particularly within the EU framework.

What sections should be included in a Security Assignment Agreement?

1. Parties: Identification of the Assignor, Assignee, and any other relevant parties to the agreement

2. Background: Context of the transaction, reference to any underlying obligations or agreements, and purpose of the security assignment

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

4. Assignment and Security Creation: Core provisions detailing the assignment of rights and creation of security interest

5. Representations and Warranties: Statements and guarantees made by the Assignor regarding their authority, ownership, and capacity

6. Perfection Requirements: Actions required to perfect the security interest and maintain its validity

7. Covenants: Ongoing obligations of the Assignor regarding the assigned rights and security

8. Enforcement: Rights and remedies of the Assignee upon default or enforcement event

9. Power of Attorney: Appointment of the Assignee as attorney for perfection and enforcement purposes

10. Notices: Communication requirements and contact details for formal notices

11. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution formalities

What sections are optional to include in a Security Assignment Agreement?

1. Security Trustee Provisions: Required when security is held by a trustee on behalf of multiple beneficiaries

2. Further Assurance: Additional provisions for cooperation in perfecting or protecting the security

3. Bank Accounts: Specific provisions for assignments involving bank accounts or cash collateral

4. Intellectual Property: Required when the assigned rights include intellectual property

5. Insurance: Provisions regarding insurance of the secured assets where applicable

6. Priority and Subordination: Required when there are multiple security interests or creditors

7. Data Protection: Required when personal data is involved in the assigned rights

8. Tax Provisions: Specific tax-related provisions where relevant to the assignment

What schedules should be included in a Security Assignment Agreement?

1. Assigned Rights: Detailed description of the rights, assets, or claims being assigned

2. Form of Notice: Template notices to third parties regarding the assignment

3. Perfection Requirements: Detailed list of actions required for perfection

4. Security Trust Deed: Terms of the security trust arrangement if applicable

5. Existing Security Interests: Details of any existing security interests affecting the assigned rights

6. Contract Documents: List and copies of relevant underlying contracts

7. Powers of Attorney: Form of any required powers of attorney

8. Registration Requirements: Details of any registration requirements with relevant authorities

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
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Banking

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Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Risk Manager

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Security Trustee

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Company Secretary

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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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