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The Working Capital Facility Agreement is a crucial financing document used in the United Arab Emirates when businesses require funding for their day-to-day operations. It establishes a formal lending relationship between a financial institution and a borrower, typically used for financing inventory, accounts receivable, or meeting short-term operational needs. The agreement must comply with UAE Federal Laws, including UAE Central Bank regulations, the Commercial Transactions Law, and Civil Code requirements. It contains detailed provisions on facility limits, drawdown mechanisms, security requirements, financial covenants, and reporting obligations. This document is essential for businesses seeking to maintain liquidity and manage cash flow cycles effectively while ensuring compliance with local regulatory requirements.

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

2. Background: Context of the facility and brief description of the purpose

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation clauses

4. The Facility: Details of the working capital facility including amount, purpose, and availability period

5. Conditions Precedent: Prerequisites that must be satisfied before the facility can be utilized

6. Utilization: Procedures and requirements for drawing down the facility

7. Interest: Interest calculation, periods, payment dates, and default interest provisions

8. Repayment: Terms of repayment including scheduled payments and prepayment provisions

9. Fees and Expenses: All applicable fees, charges, and cost arrangements

10. Representations and Warranties: Standard and specific representations made by the borrower

11. Information Undertakings: Borrower's obligations to provide financial and other information

12. General Undertakings: Positive and negative covenants of the borrower

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Provisions regarding assignment and transfer rights

15. Payment Mechanics: Payment procedures, currencies, and set-off rights

16. Notices: Communication procedures and contact details

17. Governing Law and Enforcement: UAE law as governing law and jurisdiction provisions