Debt Assignment And Assumption Agreement Template for Malaysia

The Debt Assignment And Assumption Agreement is a crucial document in Malaysian commercial practice, typically used when a creditor wishes to transfer their rights and obligations under a debt arrangement to a new creditor. This document is essential in various scenarios, including debt portfolio sales, corporate restructuring, or strategic debt management. Under Malaysian law, particularly the Contracts Act 1950 and Civil Law Act 1956, such assignments must be properly documented to be legally effective. The agreement includes detailed provisions about the assigned debt, consideration, representations and warranties, and necessary approvals. It may also address security arrangements, guarantees, and specific compliance requirements under Malaysian banking and financial regulations. This document is particularly important in ensuring clear documentation of the debt transfer chain and protecting all parties' legal interests.

1. Parties: Identification of the Assignor (original creditor), Assignee (new creditor), and Debtor

2. Background: Recitals explaining the original debt, the reason for assignment, and the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including 'Assigned Debt', 'Effective Date', and 'Security Documents'

4. Assignment and Assumption: Core provisions detailing the assignment of rights and obligations from Assignor to Assignee

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

6. Effective Date: Specifies when the assignment becomes effective

7. Representations and Warranties: Statements by the Assignor regarding ownership, authority, and status of the debt

8. Debtor's Acknowledgment: Confirmation by the debtor of the assignment and agreement to pay the Assignee

9. Further Assurance: Obligations to execute additional documents or take actions to perfect the assignment

10. Notices: Requirements for giving notices under the agreement

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