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Deed Of Assignment Of Loan for United Arab Emirates

Deed Of Assignment Of Loan Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the transfer of rights and obligations under a loan agreement from one party (the Assignor) to another (the Assignee). The deed must comply with UAE Civil Code requirements and, where applicable, UAE Central Bank regulations. It includes detailed provisions covering the assignment mechanics, representations and warranties, consideration, and completion requirements. The document may need to incorporate specific provisions for Sharia compliance if the original loan was structured under Islamic finance principles, and must meet UAE formal execution requirements for deeds.

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Deed Of Assignment Of Loan

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What is a Deed Of Assignment Of Loan?

The Deed of Assignment of Loan Template is essential for transactions in the UAE where loan rights and obligations need to be transferred between parties. This document is commonly used in loan portfolio sales, debt restructuring, or when financial institutions want to transfer their loan exposures. The deed must comply with UAE Civil Code requirements, particularly Articles 1106-1132 regarding assignments, and may need to address UAE Central Bank regulations if regulated entities are involved. It's crucial for documenting the transfer terms, protecting both assignor and assignee interests, and ensuring proper notice to the borrower. The template includes provisions for both conventional and Islamic finance structures, making it versatile for various financial transactions in the UAE market.

What sections should be included in a Deed Of Assignment Of Loan?

1. Parties: Identification of the Assignor (current lender), Assignee (new lender), and Original Borrower

2. Background: Details of the original loan agreement and context for the assignment

3. Definitions: Defined terms including Loan Agreement, Assignment Date, Assigned Rights, etc.

4. Assignment: Core provisions effecting the transfer of the loan and associated rights

5. Consideration: Details of the payment or other consideration for the assignment

6. Completion: Mechanics and timing for the completion of the assignment

7. Representations and Warranties: Assignor's confirmations about the loan, their authority to assign, etc.

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

9. Notices: Process for serving notices under the deed

10. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction

What sections are optional to include in a Deed Of Assignment Of Loan?

1. Sharia Compliance: Required if the original loan is Sharia-compliant, containing necessary provisions to maintain compliance

2. Security Assignment: Required if any security interests are being transferred along with the loan

3. Borrower Consent: Include if borrower's consent is required and obtained for the assignment

4. Central Bank Requirements: Required if assignment involves regulated financial institutions

5. Tax Provisions: Include specific tax-related provisions if assignment has significant tax implications

6. Confidentiality: Include detailed confidentiality provisions if sensitive commercial information is involved

What schedules should be included in a Deed Of Assignment Of Loan?

1. Schedule 1 - Original Loan Agreement: Copy or details of the loan agreement being assigned

2. Schedule 2 - Assigned Rights: Detailed list of all rights, interests and obligations being assigned

3. Schedule 3 - Completion Requirements: List of documents and actions required for completion

4. Schedule 4 - Form of Notice to Borrower: Template notice informing borrower of the assignment

5. Schedule 5 - Outstanding Loan Details: Current loan balance, payment status, and other key loan details

6. Appendix A - Execution Formalities: Specific requirements for valid execution under UAE law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




































Clauses





























Relevant Industries

Banking & Financial Services

Investment Management

Real Estate

Corporate Finance

Islamic Finance

Asset Management

Private Equity

Commercial Lending

Infrastructure

Construction

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Credit

Islamic Banking

Portfolio Management

Commercial Banking

Investment Banking

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Transaction Manager

Loan Officer

Credit Manager

Compliance Officer

Islamic Finance Specialist

Portfolio Manager

Risk Manager

Treasury Manager

Commercial Director

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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