Deed Of Charge And Assignment Template for Malaysia

The Deed of Charge and Assignment is a crucial security document in Malaysian financing transactions, used to create security interests over various types of assets in favor of lenders or security holders. It combines elements of both fixed and floating charges with assignments of rights, making it particularly versatile for complex financing structures. The document must comply with Malaysian legal requirements, including registration under the Companies Act 2016 for corporate chargors and the National Land Code 1965 for landed properties. It is commonly used in both bilateral and syndicated lending arrangements, project financing, and general corporate borrowing where comprehensive security packages are required. The deed includes detailed mechanisms for enforcement, realization of security, and protection of the secured party's interests under Malaysian law.

1. Parties: Identification of the Chargor(s) and Chargee(s) with full details as required under Malaysian law

2. Background: Recitals explaining the context of the security arrangement and underlying facility

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Malaysian law-specific terms

4. Creation of Charge and Assignment: Core charging and assignment provisions creating the security interest

5. Secured Obligations: Definition and scope of the obligations being secured

6. Representations and Warranties: Chargor's representations regarding ownership, authority, and status of charged assets

7. Covenants: Positive and negative obligations of the Chargor regarding the charged assets

8. Further Assurance: Obligations to execute further documents and perfect the security

9. Enforcement: Rights and remedies upon default, including appointment of receiver and power of sale

10. Power of Attorney: Appointment of Chargee as attorney for security enforcement purposes

11. Payments and Proceeds: Application of proceeds and payment mechanics

12. Continuing Security: Provisions establishing the security as continuing until full discharge

13. Notices: Communication requirements and contact details

14. Assignment and Transfer: Rights to assign or transfer the security interest

15. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions