Deed Of Assignment Loan Agreement Template for India

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Key Requirements PROMPT example:

Deed Of Assignment Loan Agreement

"I need a Deed of Assignment Loan Agreement for ABC Bank's sale of a corporate loan portfolio to XYZ Investment Fund, involving 15 performing loans with a total value of INR 500 crores, with completion scheduled for March 2025; the document must comply with RBI guidelines and include provisions for multiple borrower notifications."

Document background
The Deed of Assignment Loan Agreement is a critical instrument in Indian banking and finance practice, used when a lender wishes to transfer its rights and interests in a loan to another party. This document becomes necessary in various scenarios, including portfolio sales, debt restructuring, or strategic exits from lending positions. It must comply with Indian legislation including the Transfer of Property Act, 1882, the Indian Contract Act, 1872, and relevant banking regulations. The deed comprehensively covers the assignment mechanics, rights transfer, payment arrangements, and handling of any associated security or collateral. It's particularly important in ensuring a clean transfer of loan rights while protecting all parties' interests and maintaining the enforceability of the original loan terms. The document requires careful consideration of state-specific stamp duty requirements and registration formalities.
Suggested Sections

1. Parties: Identification of all parties: Assignor (original lender), Assignee (new lender), and Borrower

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

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

4. Assignment: Core terms of the assignment including what is being assigned and the effective date

5. Consideration: Details of the consideration paid for the assignment

6. Representations and Warranties: Representations by the Assignor regarding the loan, outstanding amount, and authority to assign

7. Rights and Obligations: Transfer of rights and obligations between Assignor and Assignee

8. Loan Terms: Restatement or confirmation of the existing loan terms including principal, interest, and repayment schedule

9. Payment Provisions: Details of how and where payments should be made post-assignment

10. Notices: Process and addresses for serving notices under the agreement

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

12. Execution: Execution blocks for all parties with requirements for witnesses and attestation

Optional Sections

1. Security Assignment: Required if there is any security or collateral associated with the loan being assigned

2. Guarantees: Include if there are any guarantors for the loan who need to consent to the assignment

3. Conditions Precedent: Include if there are specific conditions that must be met before the assignment becomes effective

4. Tax Provisions: Detailed tax implications and responsibilities if the assignment has significant tax consequences

5. Further Assurance: Optional clause requiring parties to take additional actions if needed to perfect the assignment

6. Costs and Expenses: Include if there's a need to specify who bears the costs of the assignment process

7. Regulatory Compliance: Include if either party is a regulated entity or if specific regulatory requirements apply

8. Partial Assignment: Include if only a portion of the loan is being assigned

Suggested Schedules

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

2. Schedule 2 - Loan Details: Current loan balance, interest rate, payment history, and repayment schedule

3. Schedule 3 - Security Details: Details of any security or collateral associated with the loan

4. Schedule 4 - Forms of Notice: Template notices to be sent to the Borrower and any other relevant parties

5. Schedule 5 - Conditions Precedent Documents: List of documents required to be delivered before assignment completion

6. Appendix A - Payment Instructions: New payment instructions and bank account details for loan repayments

7. Appendix B - Contact Details: Contact information for all parties and their authorized representatives

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

Financial Services

Real Estate

Corporate Finance

Investment Management

Private Equity

Asset Management

Commercial Lending

Mortgage Banking

Debt Trading

Non-Banking Financial Companies (NBFCs)

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Operations

Portfolio Management

Transaction Management

Corporate Finance

Loan Administration

Documentation

Risk Management

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Loan Officer

Risk Manager

Compliance Officer

Portfolio Manager

Transaction Manager

Banking Operations Manager

Chief Financial Officer

Legal Director

Debt Recovery Officer

Investment Manager

Corporate Finance Manager

Documentation Specialist

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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