Cession Of Loan Account Agreement

If the Free Choice rules mentioned above have not been complied with, the security assignment is not valid. Once the security transfer is completed, the Cedent will not be able to enforce the usual rights in the interest of security. An exception to this rule is that a married person in a property community signs a security assignment in normal professional, professional or commercial life. The verdict contains important lessons for the parties and their lawyers who depend on the assignment for security. A claim that must be surrendered must be an existing claim. The debt that leads to the debt is paid. Therefore, if a debt is to be transferred, it is important to ensure that the debt is not repaid before the debt is transferred. In other words, the operating director must not transfer or incriminate assets without the agreement of the secured creditor, unless the revenues are sufficient to appease the secured creditor`s debt and are effectively paid to him immediately. We believe that Section 134 does not apply to the transfer of debtors. A debt that is the responsibility of the company in terms of rescue is not a “property” within the meaning of Section 134, as it is an important issue in the rescue of businesses, since most companies in financial difficulty have an overdraft facility with a bank guaranteed by a transfer of debtors.

Many practitioners want or need to use the overdraft facility as working capital. Section 136 (a) (a) of the Act authorizes a practitioner to suspend any obligation of the company arising from an agreement in which the company participated in the initiation of a business rescue procedure. It is essential that the transfer of a non-existent right be legally null and private (i.e., a claim to be surrendered must be an existing claim). This article will focus on important considerations in the development of a security assignment based on the construction of the deposit. However, the SCA found that at the time the bank abandoned the debt, nothing could be divested, as GD Brews had to pay the debts in accordance with its agreement with Brayton and JP Brews.