Loan Assignment Agreement Template for New Zealand

The Loan Assignment Agreement is a crucial document used in New Zealand's financial and commercial sectors when transferring loan rights and obligations between parties. It is commonly used in loan portfolio sales, debt trading, restructuring scenarios, or when lenders wish to exit their loan positions. The agreement must comply with New Zealand's legal framework, particularly the Contract and Commercial Law Act 2017, Property Law Act 2007, and relevant financial regulations. This document typically includes detailed provisions about the assigned loan, purchase price, representations and warranties, and completion mechanics. It may also address the transfer of security interests, borrower consents, and ongoing administrative arrangements. The agreement is essential for maintaining clear documentation of loan ownership and ensuring the enforceability of transferred rights.

1. Parties: Identifies all parties to the agreement: the Assignor (current lender), Assignee (new lender), and potentially the Borrower if they are party to the agreement

2. Background: Sets out the context of the original loan agreement and the intention to assign the loan

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Assignment: Core provision detailing the assignment of rights, obligations, and benefits under the loan agreement

5. Consideration: Specifies the payment or other consideration for the assignment

6. Effective Date: Establishes when the assignment takes effect

7. Representations and Warranties: Standard representations from both Assignor and Assignee regarding their capacity and authority

8. Assignor's Warranties: Specific warranties regarding the loan, outstanding amounts, and absence of defaults

9. Completion Requirements: Actions required to complete the assignment, including delivery of documents and notices

10. Further Assurance: Obligation to execute further documents and take additional steps if needed

11. Costs: Allocation of costs and expenses related to the assignment

12. Notices: Procedure for giving notices under the agreement

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement