tiktok���˰�

The Loan Assumption Agreement is a critical document used in the UAE when one party wishes to take over the loan obligations of another. This agreement is particularly common in real estate transactions, corporate restructurings, and business acquisitions within the UAE jurisdiction. The document must comply with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and relevant banking regulations, while potentially incorporating Sharia principles. It details the original loan terms, the conditions for assumption, security arrangements, and the mechanism for releasing the original borrower. The agreement is especially relevant when properties are being transferred with existing financing, or when businesses are being restructured with outstanding loan obligations.

1. Parties: Identifies all parties: Original Borrower, Assuming Borrower, and Lender

2. Background: Recitals explaining the original loan, reason for assumption, and current status

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules

4. Assumption of Loan: Core provision where Assuming Borrower takes over the loan obligations

5. Original Loan Details: Details of the original loan being assumed, including amount, term, and payment structure

6. Representations and Warranties: Statements of fact by both Original and Assuming Borrower

7. Conditions Precedent: Requirements to be met before the assumption becomes effective

8. Payment Terms: Details of how and when payments will be made by the Assuming Borrower

9. Security Arrangements: Continuation or replacement of existing security arrangements

10. Original Borrower Release: Terms of release for the Original Borrower from loan obligations

11. Default Provisions: Consequences of default by the Assuming Borrower

12. Governing Law and Jurisdiction: Specifies UAE law governance and dispute resolution procedures