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Loan Market Agreement for United Arab Emirates

Loan Market Agreement Template for United Arab Emirates

A comprehensive financing agreement governed by UAE law that establishes the terms and conditions for lending facilities between financial institutions and borrowers. The agreement incorporates UAE-specific legal requirements, including Central Bank regulations and potentially Islamic finance principles. It details the facility amount, purpose, drawdown conditions, repayment terms, security arrangements, and covenants while ensuring compliance with UAE banking and commercial laws. The document can be adapted for both conventional and Islamic financing structures and includes provisions for both bilateral and syndicated lending arrangements.

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Loan Market Agreement

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What is a Loan Market Agreement?

The Loan Market Agreement is a fundamental document in UAE banking and finance transactions, used to establish and govern lending relationships between financial institutions and borrowers. It serves as the primary agreement for both conventional and Islamic financing facilities, incorporating UAE Central Bank regulations, federal laws, and where applicable, Sharia principles. This agreement is essential for documenting medium to large-scale financing transactions in the UAE, whether bilateral or syndicated, secured or unsecured. The document includes comprehensive provisions covering facility terms, conditions precedent, representations, covenants, and events of default, all structured to comply with UAE legal requirements and market practice. It's particularly important in the UAE context as it must balance international lending practices with local regulatory requirements and cultural considerations.

What sections should be included in a Loan Market Agreement?

1. Parties: Identification of the lender(s), borrower(s), and any guarantors or security providers

2. Background: Context of the loan facility and purpose

3. Definitions: Defined terms used throughout the agreement, including facility-specific and UAE law-specific terms

4. The Facility: Details of the loan facility, including amount, purpose, and availability

5. Conditions Precedent: Prerequisites for drawdown, including UAE-specific requirements

6. Drawdown: Procedures and requirements for utilization of the facility

7. Repayment: Terms of repayment including scheduled payments and early repayment provisions

8. Interest: Interest calculation, periods, and payment terms (or profit rate for Islamic facilities)

9. Fees and Expenses: All applicable fees, costs, and expenses

10. Tax Provisions: Tax-related obligations and provisions specific to UAE

11. Representations and Warranties: Standard and UAE-specific representations and warranties

12. Covenants: Financial and general covenants, including UAE regulatory requirements

13. Events of Default: Default triggers and consequences

14. Changes to Parties: Transfer and assignment provisions

15. Administration: Administrative provisions and payment mechanics

16. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

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

1. Islamic Finance Provisions: Required for Sharia-compliant facilities, including specific structural requirements

2. Security Provisions: Required when the facility is secured, detailing security structure under UAE law

3. Syndication Provisions: Required for syndicated facilities, including agency and intercreditor provisions

4. Guarantee Provisions: Required when there are guarantors, including UAE law requirements for guarantees

5. Property Provisions: Required for real estate-backed facilities, including UAE property law requirements

6. Multi-currency Provisions: Required for facilities available in multiple currencies

7. Increased Costs: Optional provisions for dealing with regulatory changes affecting lenders' costs

8. Market Disruption: Optional provisions dealing with market disruption events

What schedules should be included in a Loan Market Agreement?

1. Schedule 1 - Definitions: Detailed definitions and interpretations

2. Schedule 2 - Conditions Precedent: Detailed list of required documents and conditions

3. Schedule 3 - Utilization Request Form: Form for drawdown requests

4. Schedule 4 - Repayment Schedule: Detailed repayment schedule if term loan

5. Schedule 5 - Financial Covenants: Detailed financial covenant calculations and requirements

6. Schedule 6 - Transfer Documents: Forms for transfer and assignment

7. Schedule 7 - Security Documents: Forms of security documents compliant with UAE law

8. Schedule 8 - Fees: Detailed breakdown of all applicable fees

9. Appendix A - Form of Compliance Certificate: Template for periodic compliance certification

10. Appendix B - Form of Legal Opinions: Required format for legal opinions under UAE law

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

Financing Agreement

Cost

Free to use
Relevant legal definitions






















































Clauses







































Relevant Industries

Banking & Financial Services

Real Estate & Construction

Energy & Resources

Infrastructure

Healthcare

Hospitality & Tourism

Manufacturing & Industrial

Trading & Commerce

Technology & Telecommunications

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Islamic Banking

Credit

Operations

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Corporate Banking Manager

Islamic Banking Specialist

Transaction Manager

Senior Loan Officer

Corporate Finance Manager

Financial Controller

Head of Legal

Risk Management Director

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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