Memorandum Of Charge Generator for Singapore

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Key Requirements PROMPT example:

Memorandum Of Charge

"Need a Memorandum of Charge to secure a S$5 million loan facility from DBS Bank Limited over our company's inventory and receivables, to be completed before January 2025."

Document background
A Memorandum of Charge is a crucial security document in Singapore's commercial lending landscape. It is used when a company (Chargor) wishes to create security over its assets in favor of a lender (Chargee) to secure financial obligations. The document must comply with Singapore's Companies Act requirements and be registered with ACRA within 30 days of creation. This document is particularly important in corporate financing as it provides lenders with security over specific assets while allowing the company to continue using them in its business operations. The Memorandum of Charge includes detailed descriptions of the charged assets, secured obligations, and the parties' respective rights and obligations.
Suggested Sections

1. Parties: Details of the Chargor and Chargee

2. Background: Context of the charge creation and underlying obligations

3. Definitions: Key terms used throughout the document

4. Creation of Charge: Express words creating the charge and its nature (fixed/floating)

5. Charged Property: Detailed description of assets subject to the charge

6. Secured Obligations: Description of the debts/obligations secured by the charge

7. Representations and Warranties: Chargor's declarations regarding the charged property

8. Covenants: Ongoing obligations of the Chargor

Optional Sections

1. Further Assurance: Additional actions required to perfect the security - include when additional perfection steps may be needed

2. Power of Attorney: Appointment of Chargee as attorney - include when enforcement may require direct action by Chargee

3. Insurance: Requirements for insurance of charged assets - include when charged property requires insurance coverage

Suggested Schedules

1. Schedule 1 - Charged Property: Detailed list and description of all charged assets

2. Schedule 2 - Secured Obligations: Detailed description of secured debts/obligations

3. Schedule 3 - Form of Notice: Template notices to third parties regarding the charge

4. Schedule 4 - Properties: Details of any real property subject to the charge

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
Industries

Companies Act 1967: Primary legislation governing company charges in Singapore. Key sections include Part VIII for registration of charges, Section 131 (requirement to register), Section 132 (duty to register), and Section 134 (priority of charges).

Property Law Act 1893: Contains fundamental provisions relating to the creation and enforcement of security interests, including requirements for establishing valid charges over property.

Banking Act 1970: Relevant when charges involve financial institutions, containing specific regulations regarding security interests held by banks and financial institutions.

Conveyancing and Law of Property Act: Governs charges over real property and outlines specific requirements for creating security interests in land.

Personal Property Securities Act: Prospective legislation being considered in Singapore that would affect the registration and priority of security interests in personal property.

ACRA Guidelines: Regulatory guidelines from the Accounting and Corporate Regulatory Authority covering registration requirements, filing procedures, and prescribed forms for charges.

MAS Guidelines: Monetary Authority of Singapore guidelines applicable to charges involving regulated financial institutions, including specific requirements for the financial sector.

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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