Deed Of Assignment Of Debt Template for Canada

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Key Requirements PROMPT example:

Deed Of Assignment Of Debt

"I need a Deed of Assignment of Debt to transfer a $500,000 corporate loan from ABC Finance Ltd to XYZ Capital Inc, with completion scheduled for March 15, 2025; the debt is unsecured and the debtor is a manufacturing company in Ontario."

Document background
The Deed of Assignment of Debt is a crucial instrument in Canadian commercial and financial transactions, used when one party wishes to transfer their rights as a creditor to another party. This document is particularly relevant in debt trading, portfolio sales, corporate restructuring, and financial arrangements. It must comply with both federal and provincial Canadian legislation, including the Personal Property Security Act and relevant contract law. The deed format provides additional legal protection and enforceability compared to simple assignments. It contains detailed provisions about the debt being transferred, consideration paid, warranties given by the assignor, and mechanisms for perfecting the assignment. This document is commonly used in conjunction with debt purchases, factoring arrangements, or as part of larger financial transactions.
Suggested Sections

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

2. Background: Recitals explaining the existence of the debt, the parties' relationship, and intention to assign

3. Definitions: Definitions of key terms used throughout the deed

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

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

6. Warranties and Representations: Assignor's warranties regarding ownership, right to assign, and status of the debt

7. Completion: Requirements for completion of the assignment, including payment and delivery of documents

8. Further Assurance: Obligation to execute further documents and take additional steps if needed

9. Costs: Allocation of costs related to the assignment

10. Governing Law and Jurisdiction: Specification of applicable law and courts

11. Execution: Formal execution block meeting deed requirements

Optional Sections

1. Security Assignment: Required if the debt is secured by any form of security interest or guarantee

2. Notice Requirements: Include if specific notice requirements to the debtor or other parties are needed

3. Conditions Precedent: Include if the assignment is conditional upon certain events or actions

4. Power of Attorney: Include if Assignee needs power to act in Assignor's name

5. Registration: Include if the assignment needs to be registered under PPSA or other legislation

6. Confidentiality: Include if sensitive commercial information is involved

7. Tax Provisions: Include if there are specific tax implications to address

8. Multiple Debts: Include if assigning a portfolio of debts with specific provisions

Suggested Schedules

1. Schedule 1 - Details of the Debt: Comprehensive details of the debt being assigned, including amount, interest rate, payment terms

2. Schedule 2 - Original Debt Documentation: List and copies of all relevant original debt documentation

3. Schedule 3 - Security Details: Details of any security interests or guarantees associated with the debt

4. Schedule 4 - Form of Notice: Template notice to be sent to the debtor informing of the assignment

5. Schedule 5 - Related Rights: List of any related rights being assigned (e.g., insurance rights, collection rights)

6. Appendix A - Payment Instructions: Details of how and where payments should be made post-assignment

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
Relevant Industries

Banking and Financial Services

Commercial Real Estate

Corporate Finance

Insurance

Investment Management

Debt Collection

Asset Management

Private Equity

Healthcare Finance

Construction and Development

Manufacturing

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Control

Debt Recovery

Risk Management

Compliance

Commercial Operations

Corporate Finance

Portfolio Management

Relevant Roles

Finance Manager

Credit Manager

Legal Counsel

Corporate Lawyer

Debt Collection Manager

Portfolio Manager

Treasury Manager

Financial Controller

Risk Manager

Commercial Director

Accounts Receivable Manager

Chief Financial Officer

Legal Operations Manager

Compliance Officer

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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