Document background
An Assignment Of Proceeds Agreement is a crucial document in Hong Kong's commercial landscape, used when a party wishes to transfer its right to receive payments or proceeds to another party. This type of agreement is commonly used in financing arrangements, project finance, receivables financing, and security arrangements. The document must comply with Hong Kong's legal requirements, particularly the Law Amendment and Reform (Consolidation) Ordinance and relevant common law principles. It typically includes detailed provisions about the assigned rights, payment mechanisms, representations about the validity of the assignment, and enforcement procedures. The agreement is particularly important in structured finance transactions and can be used as both a primary financing tool and as part of broader security arrangements in Hong Kong.
