Assignment of Book Debts in Consideration of a Debt (India) by OLL
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BOOK DEBTS IN CONSIDERATION OF A DEBT
THIS DEED OF ASSIGNMENT is executed on this ________ day of _________.
BETWEEN
Sh. _______________________________,
S/o_______________________________,
R/o_________________________________ (hereinafter called "the assignor") which expression shall include his successors, executors and administrators of the one part
AND
Sh. ________________________________,
S/o________________________________,
R/o________________________________ (hereinafter called "the assignee") which expression shall include his successors, executors and administrators of the other part.
WHEREAS
1. The assignor is engaged in the trade of ____ and has his office at _____ and godowns at _____under the name and style of _________;
2. The assignor has in the course of the trade given the products to several persons on credit. The names of such creditors are stated in the first column of the schedule hereto and the amount of credit is also given against to their respective names in the second column of the said schedule;
3. The assignor had taken a loan of Rs.____ from the assigning by executed a bond on ______ and is thus indebted to him;
4. The parties to this deed have conceited that the assignor shall assign and the assignee shall accept shall said debts satisfying the loan amount due from the assignor to the assignee.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. The assignor as beneficial owner hereby assigns to the assignee all the debts states in place against the consideration of the sum of Rs._________, due to the assignee.
2. In consideration of the sum of Rs. __________ so assigned by the assignor to the assignee, the assignee as beneficial owner of the same releases the assignor from the debt so owed under the bond above stated.
3. The assignor assigns in addition to all the various debts states in the schedule hereto the benefits of all securities for the same and all interest, if any, due and to become due for the same TO HOLD the same to the assignee completely.
4. The assignor consenting with the assignee that the said debts hereby assigned are still due and owing to the assignor from the several persons given in the said schedule.
IN WITNESS WHEREOF, the parties to this deed have signed this deed at New Delhi, on the day, month and year first noted above, in presence of :
Assignor
______________
Assignee:
______________
Signed ..................
Date ......................
Witnesses:
1.
2.
This document is a formal deed for the assignment of book debts, allowing an assignor to transfer their outstanding business credits to an assignee in order to settle an existing debt. It includes provisions for transferring the benefits of securities and interest, effectively releasing the assignor from their original financial obligation to the assignee.
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About this template
What is this template?
This document is a formal deed that transfers the legal right to collect specific trade debts from a debtor to a creditor. It is not a standard sale of goods contract or a new loan agreement; it is a mechanism for debt settlement through the transfer of existing assets.
When should you use it?
Use this when a party owes money under a bond and wishes to pay it off by giving the creditor the rights to their own customer's unpaid invoices. Use a Debt Settlement Agreement instead if the payment is being made in cash rather than through the assignment of third-party debts.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Assignment of Debts | The assignor transfers all debts listed in the schedule to the assignee in exchange for a specific sum in Rupees. |
| 2 | Release of Debt | The assignee releases the assignor from obligations under a previously executed bond upon receipt of the assigned book debts. |
| 3 | Transfer of Securities and Interest | The assignment includes the benefit of all securities and all interest due or becoming due on the listed debts. |
| 4 | Representation of Validity | The assignor confirms that the debts listed in the schedule are still active and owing from the named third parties. |
Who it's for
- an individual trader in India settling a personal loan using their business's accounts receivable
- a creditor accepting third-party trade debts as payment for an outstanding bond debt
How long it runs and how it's signed
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