Assignment of a Debt Due for a Consideration (India)
This document is a Deed of Assignment used to transfer a debt from one party to another. It formally allows an assignor to transfer their right to collect a specific debt, including any accrued interest, to an assignee in exchange for a payment.
A DEBT DUE FOR A CONSIDERATION
This Deed of Assignment is executed on this __________________ day of __________.
Between Mr.____________________________,
S/o____________________________________,
address_____________________________________________________________________ (hereinafter called "the assignor") which expression shall include his successors, executors and administrators of the one part
And Mr._____________________________________,
S/o_________________________,
R/o_________________________________________________________________________ (hereinafter called "the assignee") which expression shall include his successors, executors and administrators of the other part. Now This Deed Witnesseth As Follows: 1. In consideration in lieu of the sum of Rs.______________ (Rupees ________________________________________________ only) paid by the assignee to the assignor (the receipt of which the assignor hereby acknowledges) the assignor as beneficial owner hereby transfers to the assignee all that debt due and owing to the assignor by his customer Sh. __________,
S/o Sh. ____________________________,
address _____________________________________________.
2. The said debt, which was given by the assignor to his customer, has been acknowledged vide a bond dated_________________ executed favouring the assignor by the customer.
3. addition to the amount in the bond the assignor also transfers to the assignee all interest due and to become due from the bond to the assignor, completely.
4. The assignee as beneficial owner accepts the assignment so granted by the assignor.
5. The assignor hereby agrees with the consents that the said debt is still due and owing to the assignor from his customer. In Witness Whereof, the parties to this deed have appended their signatures at ………………………………………, on the day, month and year first noted above, in presence of: Assignor ___________ Assignee: ____________ Signed.................... Date ......................
Witnesses: 1. 2.
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About this template
What is this template?
This document is a deed of assignment specifically for transferring a debt obligation from one party to another. It is not a loan agreement or a promissory note, but rather the instrument that transfers the rights under such agreements to a new person. It contains a power of attorney clause allowing the new creditor to pursue legal action in the original creditor's name.
When should you use it?
Use this document when a debt is being sold to a third party and you need to legally transfer the right to receive payment. Use a Novation Agreement instead if the debtor is also a party to the document and is being released from the original contract in favor of a new one.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Consideration | Specifies the amount of consideration paid by the Assignee to the Assignor for the transfer of the debt. |
| 2 | Assignment of Debt | Effectuates the transfer of the principal sum and all interest due to the Assignee. |
| 3 | Power of Attorney | Grants the Assignee the right to sue for and recover the debt in the name of the Assignor. |
| 4 | Indemnity | Obliges the Assignor to indemnify the Assignee against any loss resulting from defects in the Assignor's title to the debt. |
Who it's for
- an individual or entity in India selling an outstanding debt to a third party
- a creditor transferring the right to recover a loan for a fixed price
How long it runs and how it's signed
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