Loan Assignment Agreement Template for Germany

The Loan Assignment Agreement is a crucial document used in German financial transactions when transferring loan rights and obligations between parties. It is commonly used in loan portfolio sales, debt restructuring, or when financial institutions need to transfer individual loans. The agreement must comply with German law requirements, particularly the Civil Code (BGB) provisions on assignments, and typically includes detailed information about the original loan, the parties involved, the scope of rights being transferred, and any associated security interests. This document is essential for maintaining clear documentation of loan ownership and ensuring the enforceability of the assignment under German law.

1. Parties: Identification of the Assignor (current loan holder), Assignee (new loan holder), and potentially the Borrower

2. Background: Context of the original loan agreement, reason for assignment, and current status of the loan

3. Definitions: Definitions of key terms used throughout the agreement, including 'Loan Agreement', 'Assignment Date', 'Assigned Rights', etc.

4. Assignment: Core provision detailing the transfer of rights from Assignor to Assignee, including the scope of assigned rights and effective date

5. Purchase Price and Payment: Details of the consideration for the assignment, payment terms, and payment mechanics

6. Completion: Requirements and conditions for completing the assignment, including any required notifications or registrations

7. Representations and Warranties: Statements by the Assignor regarding their authority to assign, status of the loan, and absence of encumbrances

8. Undertakings: Ongoing obligations of the parties, including cooperation in perfecting the assignment and providing necessary documentation

9. Further Assurance: Obligations to take additional steps necessary to effect and perfect the assignment

10. Notices: Procedures for giving notices under the agreement

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes