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Bridge Loan Agreement for United Arab Emirates

Bridge Loan Agreement Template for United Arab Emirates

A comprehensive template for a Bridge Loan Agreement governed by UAE law, designed to facilitate short-term financing arrangements while ensuring compliance with both UAE civil law and potential Sharia requirements. The agreement incorporates essential provisions for loan disbursement, repayment terms, security arrangements, and enforcement mechanisms specific to the UAE legal framework. It addresses key regulatory requirements under UAE banking and commercial laws, including Central Bank regulations, while providing flexibility to accommodate both conventional and Islamic financing structures where necessary.

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Bridge Loan Agreement

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What is a Bridge Loan Agreement?

This Bridge Loan Agreement Template is designed for use in the United Arab Emirates, providing a comprehensive framework for short-term financing arrangements typically used to bridge temporary funding gaps or facilitate time-sensitive transactions. The template incorporates key provisions required under UAE law, including compliance with UAE Civil Code, Commercial Transactions Law, and Central Bank regulations. It is structured to accommodate both conventional and Islamic financing principles, making it versatile for various financial institutions operating in the UAE. The Bridge Loan Agreement Template includes essential sections covering loan terms, conditions precedent, security arrangements, and enforcement mechanisms, while allowing customization based on specific transaction requirements and party needs. The document is particularly relevant for situations requiring interim financing pending more permanent funding arrangements, corporate acquisitions, or project financing gaps.

What sections should be included in a Bridge Loan Agreement?

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Context of the bridge loan, including purpose and relationship to permanent financing

3. Definitions: Key terms used throughout the agreement, including financial and technical definitions

4. Facility: Details of the loan amount, purpose, and availability period

5. Conditions Precedent: Prerequisites that must be satisfied before the loan can be drawn

6. Drawdown: Procedures and requirements for borrowing the loan amount

7. Interest and Fees: Interest rate, calculation method, payment dates, and applicable fees

8. Repayment: Terms of repayment including maturity date and prepayment provisions

9. Representations and Warranties: Borrower's statements about its legal and financial status

10. Covenants: Ongoing obligations of the borrower during the loan term

11. Events of Default: Circumstances that constitute default and consequences

12. Security: Details of any collateral or guarantees securing the loan

13. Boilerplate Provisions: Standard legal provisions including notices, amendments, and governing law

What sections are optional to include in a Bridge Loan Agreement?

1. Islamic Finance Provisions: Required if the bridge loan needs to be Sharia-compliant, including profit rate structure instead of interest

2. Syndication: Include if multiple lenders are involved or if syndication rights are reserved

3. Security Trustee Provisions: Required if security is held by a security trustee on behalf of multiple lenders

4. Intercreditor Provisions: Include if there are multiple creditors with different priorities

5. Currency Provisions: Required if the loan involves multiple currencies or currency conversion

6. Tax Provisions: Detailed tax provisions if cross-border elements exist

7. Assignment and Transfer: Include if transfer rights are to be granted to either party

8. Increased Costs: Include if lender needs protection against regulatory changes affecting loan costs

What schedules should be included in a Bridge Loan Agreement?

1. Form of Drawdown Request: Standard form for requesting loan disbursements

2. Conditions Precedent Documents: List of required documents and conditions to be satisfied

3. Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts

4. Form of Security Documents: Templates for required security documentation

5. Form of Compliance Certificate: Template for periodic compliance certification

6. Fee Schedule: Detailed breakdown of all applicable fees

7. Permitted Security: List of security interests permitted to exist

8. Form of Transfer Certificate: Template for transferring loan participations if permitted

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





































Clauses



































Relevant Industries

Banking & Financial Services

Real Estate & Construction

Energy & Resources

Infrastructure

Healthcare

Manufacturing

Technology

Retail & Consumer

Hospitality & Tourism

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit

Banking Operations

Investment Banking

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Lawyer

Treasury Manager

Finance Manager

Risk Manager

Compliance Officer

Corporate Secretary

Investment Manager

Credit Manager

Transaction Manager

Documentation Specialist

Senior Banker

Relationship Manager

Industries








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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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