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Revolving Agreement for United Arab Emirates

Revolving Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes a revolving credit facility between a financial institution and a borrower. The document outlines the terms and conditions for repeated borrowing up to a specified limit, including drawdown mechanisms, repayment terms, interest calculations, and renewal provisions. It incorporates specific UAE regulatory requirements, particularly those from the UAE Central Bank and Federal laws governing banking and commercial transactions. The agreement includes provisions for security (if applicable), compliance with local laws, and dispute resolution under UAE jurisdiction.

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Revolving Agreement

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What is a Revolving Agreement?

The Revolving Agreement serves as a fundamental document in UAE banking and commercial relationships, providing a framework for flexible, recurring credit arrangements. It is commonly used when a borrower requires ongoing access to credit with the ability to draw down, repay, and re-borrow within a specified limit. The document must comply with UAE Federal Laws, including the Civil Code and Commercial Code, as well as UAE Central Bank regulations. This agreement type is particularly valuable for businesses with fluctuating capital needs or those requiring regular working capital facilities. It includes comprehensive provisions covering facility terms, security arrangements (if applicable), compliance requirements, and operational procedures, all structured to ensure enforceability under UAE law and alignment with local banking practices.

What sections should be included in a Revolving Agreement?

1. Parties: Identification of all parties to the agreement with full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Facility/Arrangement: Details of the revolving facility including limit, purpose, and revolving mechanism

5. Drawdown and Renewal: Procedures and conditions for utilizing and renewing the facility

6. Interest and Fees: Applicable interest rates, calculation methods, and associated fees

7. Repayment Terms: Payment obligations, schedules, and methods of payment

8. Representations and Warranties: Statements of fact and assurances given by each party

9. Covenants: Ongoing obligations and restrictions on the parties

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Conditions and procedures for ending the agreement

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

What sections are optional to include in a Revolving Agreement?

1. Security: Details of any collateral or guarantees - include when facility is secured

2. Islamic Finance Provisions: Specific provisions for Sharia compliance - include for Islamic banking arrangements

3. Electronic Trading Provisions: Procedures for electronic transactions - include when facility operates through digital platforms

4. Multiple Currency Provisions: Rules for multiple currency operations - include for multi-currency facilities

5. Agency Provisions: Administrative and payment agency terms - include for syndicated facilities

6. Data Protection: Specific data handling requirements - include when processing personal data

What schedules should be included in a Revolving Agreement?

1. Facility Terms Schedule: Detailed terms including limits, interest rates, and fees

2. Form of Drawdown Notice: Template for requesting utilization of the facility

3. Conditions Precedent: List of documents and conditions required before first drawdown

4. Security Details: Specific details of any security arrangements and collateral

5. Calculation Methods: Detailed procedures for calculating interest, fees, and payment amounts

6. Contact Details: List of authorized representatives and contact information

7. Compliance Requirements: Detailed regulatory compliance requirements and procedures

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 and Financial Services

Commercial and Corporate Banking

Islamic Banking

Retail Banking

Trade Finance

Manufacturing

Trading and Distribution

Real Estate

Construction

Hospitality

Healthcare

Technology

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Islamic Banking

Trade Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Credit Manager

Relationship Manager

Legal Counsel

Compliance Officer

Risk Manager

Corporate Banking Manager

Trade Finance Manager

Islamic Banking Specialist

Account Manager

Operations Manager

Credit Analyst

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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