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Agreement For Loan Against Property
I need an Agreement For Loan Against Property for a Sharia-compliant commercial property loan of AED 5 million in Dubai, with the borrower being a UAE-registered LLC, and the property being a retail space in Business Bay.
1. Parties: Identification of the Lender and Borrower with full legal names and addresses
2. Background: Context of the loan agreement, including brief description of the property and purpose of the loan
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Amount and Purpose: Specification of the loan amount, purpose, and disbursement terms
5. Property Details: Detailed description of the property being used as security
6. Security Creation: Terms creating the security interest over the property
7. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions
8. Interest Rate and Profit: Specification of profit rate (for Islamic finance) or interest rate and calculation method
9. Borrower's Representations and Warranties: Statements of fact and assurances given by the borrower
10. Borrower's Covenants: Ongoing obligations of the borrower during the loan term
11. Events of Default: Circumstances constituting default and consequences
12. Lender's Rights and Remedies: Actions the lender can take in case of default
13. Property Insurance: Requirements for insurance coverage of the property
14. Fees and Expenses: Details of all fees, charges, and expenses payable
15. Notices: Communication methods and contact details for formal notices
16. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
1. Guarantor Provisions: Required when there is a third-party guarantor for the loan
2. Islamic Finance Provisions: Required for Sharia-compliant financing structures
3. Property Management: Required when specific property management obligations are imposed on the borrower
4. Assignment and Transfer: Include when the lender wants the right to assign or transfer the loan
5. Additional Security: Required when additional collateral or security is provided beyond the property
6. Cross-Default: Include when the loan is part of multiple facility arrangements
7. Force Majeure: Optional provisions for unforeseen circumstances affecting loan performance
8. Variation and Amendments: Include when specific procedures for amendments are required
1. Property Details Schedule: Detailed legal description of the property, including title details and encumbrances
2. Repayment Schedule: Detailed amortization schedule showing payment dates and amounts
3. Fee Schedule: Comprehensive list of all applicable fees and charges
4. Insurance Requirements: Detailed specifications for required insurance coverage
5. Form of Notice: Standard templates for various notices under the agreement
6. Property Valuation Report: Summary of the professional valuation of the property
7. Required Documents: List of all documents required for loan processing and security creation
8. Conditions Precedent Checklist: List of conditions to be satisfied before loan disbursement
Authors
Banking & Financial Services
Real Estate
Islamic Finance
Insurance
Legal Services
Property Development
Construction
Commercial Real Estate
Residential Real Estate
Small and Medium Enterprises
Legal
Credit Risk
Compliance
Real Estate Finance
Islamic Banking
Property Services
Loan Operations
Documentation
Risk Management
Corporate Banking
Retail Banking
Legal Counsel
Mortgage Officer
Credit Manager
Property Valuation Specialist
Compliance Officer
Risk Manager
Real Estate Manager
Islamic Banking Specialist
Loan Officer
Chief Legal Officer
Property Lawyer
Banking Relationship Manager
Credit Risk Officer
Documentation Specialist
Real Estate Finance Manager
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