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The Margin Lending Agreement is a crucial document used when financial institutions in the UAE provide credit facilities to clients for securities trading purposes. This agreement is essential for establishing the legal framework for margin trading activities, ensuring compliance with UAE Central Bank regulations and Securities and Commodities Authority (SCA) requirements. The document details the terms of the lending facility, including margin requirements, collateral arrangements, risk management procedures, and enforcement mechanisms. It incorporates specific UAE regulatory requirements such as prescribed margin ratios, risk disclosures, and customer protection measures. The agreement is particularly important given the increasing sophistication of the UAE financial markets and the need for clear documentation of margin lending arrangements that comply with both federal laws and specific financial free zone regulations.

1. Parties: Identification of the lender and borrower, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including the lender's authority to provide margin lending services and the borrower's intention to obtain margin financing

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement, including technical terms related to margin lending, collateral, and market terminology

4. Facility and Purpose: Details of the margin lending facility, including amount, purpose, and any restrictions on use

5. Margin Requirements: Specification of initial and maintenance margin requirements, calculation methodologies, and margin call procedures

6. Collateral Arrangements: Terms regarding the provision, maintenance, and administration of collateral, including types of acceptable collateral

7. Drawdown and Repayment: Procedures and conditions for drawdown of the facility and requirements for repayment

8. Interest and Fees: Details of interest calculations, fees, charges, and payment terms

9. Representations and Warranties: Standard and specific representations and warranties from both parties

10. Covenants: Positive and negative covenants applicable to the borrower

11. Events of Default: Comprehensive list of events that constitute default and consequences thereof

12. Enforcement Rights: Lender's rights and remedies upon default, including liquidation of collateral

13. Risk Disclosure: Mandatory risk warnings and acknowledgments as required by UAE regulations

14. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

15. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes