Purchase and Assumption Agreement to Purchase the Assets and Assume the Liabilities

• Category: Corporations - Public - Asset Purchase
• State: Multi-State
• Control #: US-C-P-AP-16765-1
• Format: Word; Rich Text

Description

This is a sample Purchase and Assumption Agreement. This sample is an Amendment to Purchase the Assets and Assume the Liabilities of a bank. Purchase and assumption is a transaction in which a healthy bank or thrift purchases assets and assumes liabilities (including all insured deposits) from an unhealthy bank or thrift. It is the most common and preferred method used by the Federal Deposit Insurance Corporation (FDIC) to deal with failing banks. A Purchase and Assumption Agreement to Purchase the Assets and Assume the Liabilities is a contract between two parties that allows one party to purchase the assets and liabilities of another party. This agreement is typically used in the context of a business sale or merger, where the purchasing party takes on the assets and liabilities of the seller. The types of Purchase and Assumption Agreement to Purchase the Assets and Assume the Liabilities include novation, assignment, bulk sale, and chapter 11 bankruptcy. In a novation agreement, the parties agree to transfer all the assets and liabilities of the seller to the buyer. In an assignment agreement, the buyer is only taking on some of the seller's assets and liabilities. With a bulk sale, the buyer takes on all the seller's assets and liabilities. Finally, in a chapter 11 bankruptcy, the court approves the transfer of all the seller's assets and liabilities to the buyer.

A Purchase and Assumption Agreement to Purchase the Assets and Assume the Liabilities is a contract between two parties that allows one party to purchase the assets and liabilities of another party. This agreement is typically used in the context of a business sale or merger, where the purchasing party takes on the assets and liabilities of the seller. The types of Purchase and Assumption Agreement to Purchase the Assets and Assume the Liabilities include novation, assignment, bulk sale, and chapter 11 bankruptcy. In a novation agreement, the parties agree to transfer all the assets and liabilities of the seller to the buyer. In an assignment agreement, the buyer is only taking on some of the seller's assets and liabilities. With a bulk sale, the buyer takes on all the seller's assets and liabilities. Finally, in a chapter 11 bankruptcy, the court approves the transfer of all the seller's assets and liabilities to the buyer.