Deed Of Assignment By Way Of Security Template for New Zealand

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Key Requirements PROMPT example:

Deed Of Assignment By Way Of Security

"I need a Deed of Assignment by Way of Security for our company to assign our accounts receivable (valued at approximately NZD 500,000) to ABC Bank Limited as security for a new working capital facility, with the assignment to take effect from March 1, 2025."

Document background
The Deed of Assignment by Way of Security is a crucial security instrument in New Zealand's commercial and financial landscape. It is commonly used when a party (the assignor) needs to provide security over assets or rights to another party (the assignee), typically in connection with financing arrangements, loan facilities, or other commercial transactions. The deed must comply with New Zealand's Personal Property Securities Act 1999, Property Law Act 2007, and other relevant legislation. It contains detailed provisions covering the creation and perfection of the security interest, representations and warranties, enforcement mechanisms, and release conditions. This document is particularly valuable when traditional fixed or floating charges may not be suitable, or when specific assets or rights need to be secured while allowing the assignor to continue using them in the ordinary course of business.
Suggested Sections

1. Parties: Identification of the Assignor and Assignee with full legal names and details

2. Background: Context of the security arrangement and relationship between parties

3. Definitions and Interpretation: Defined terms and interpretation rules for the deed

4. Assignment: Core provisions detailing the assignment of property/rights as security

5. Security Interest: Creation and nature of the security interest, including PPSA provisions

6. Assignor's Covenants: Obligations and warranties of the Assignor regarding the secured property

7. Representations and Warranties: General representations and warranties from both parties

8. Protection of Security: Provisions for maintaining the security's value and effectiveness

9. Enforcement: Rights and powers of the Assignee upon default

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

11. Releases and Discharges: Conditions and process for releasing the security

12. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

13. Execution: Formal execution block meeting NZ deed requirements

Optional Sections

1. Further Assurance: Additional provisions requiring parties to execute further documents - include for complex assignments

2. GST Provisions: Include when the assigned property/rights involve goods or services subject to GST

3. Receiver Provisions: Include when receiver appointment rights are required, typically for commercial arrangements

4. Priority Arrangements: Include when there are multiple security interests requiring priority rules

5. Confidentiality: Include when sensitive commercial information is involved

6. Assignment and Transfer: Include when rights to assign the security interest need to be addressed

Suggested Schedules

1. Schedule 1 - Secured Property: Detailed description of the property/rights being assigned as security

2. Schedule 2 - Secured Obligations: Description of the obligations being secured

3. Schedule 3 - Specific Terms and Conditions: Any specific terms relating to the particular security arrangement

4. Schedule 4 - Form of Notice: Template notices for relevant third parties about the assignment

5. Schedule 5 - Properties Schedule: Details of any real property involved (if applicable)

6. Appendix A - PPSA Financing Statement: Copy of or details for PPSA registration

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
Relevant Industries

Banking & Financial Services

Commercial Real Estate

Manufacturing

Retail

Agriculture

Professional Services

Technology

Construction

Infrastructure

Transport & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Credit Management

Corporate Secretariat

Banking Operations

Security Administration

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Manager

Chief Financial Officer

Commercial Director

Security Trustee

Credit Manager

Risk Manager

Compliance Officer

Company Secretary

Banking Relationship Manager

Treasury Manager

Contract Administrator

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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