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A Debtor Confirmation Letter is a crucial document in UAE business and financial transactions, used to formally document and confirm existing debt obligations. This document is particularly important in the UAE legal system, where written acknowledgment of debt carries significant evidential weight in legal proceedings. The letter serves multiple purposes: it refreshes the limitation period for debt collection, provides clear evidence of the debt amount and terms, and can be used in both conventional and Islamic banking contexts. A properly executed Debtor Confirmation Letter typically includes detailed information about the parties, specific debt amounts, payment terms, and applicable interest (if any), all while ensuring compliance with UAE law. It's commonly used in restructuring scenarios, debt consolidation, or when formalizing previously informal lending arrangements. The document should be carefully drafted to ensure enforceability under UAE law and to provide maximum protection for the creditor while clearly stating the debtor's obligations.

1. Letter Header: Date, reference number, and formal addressing of the creditor

2. Party Details: Full legal names, addresses, and registration details (if applicable) of both debtor and creditor

3. Debt Acknowledgment: Clear and unequivocal confirmation of the debt amount, currency, and origin of the debt

4. Payment Terms: Confirmation of agreed payment terms, including due dates and payment method

5. Interest Declaration: Statement regarding any applicable interest (ensuring compliance with Sharia principles if relevant)

6. Governing Law Statement: Confirmation that UAE law governs the letter and debt obligation

7. Execution Block: Signature block with required formalities under UAE law