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Investment Loan Contract for United Arab Emirates

Investment Loan Contract Template for United Arab Emirates

A comprehensive legal template designed for investment loan transactions in the United Arab Emirates, compliant with UAE Federal Laws and regulations including the UAE Civil Code and Commercial Code. The document incorporates provisions for both conventional and Islamic finance structures, addressing key aspects such as facility terms, security arrangements, drawdown mechanics, and regulatory compliance requirements. It includes specific provisions for UAE jurisdiction and can be customized for various investment purposes while maintaining compliance with UAE Central Bank regulations and local banking practices.

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Investment Loan Contract

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What is a Investment Loan Contract?

The Investment Loan Contract Template is designed for use in the United Arab Emirates financial sector, providing a standardized framework for documenting investment financing arrangements. This template is specifically structured to comply with UAE Federal Laws, including Civil Code (Federal Law No. 5 of 1985) and Commercial Code (Federal Law No. 18 of 1993), while incorporating flexibility for both conventional and Islamic finance structures. It serves as a foundational document for financial institutions and corporate borrowers engaging in investment financing, covering essential elements such as facility terms, security arrangements, regulatory compliance, and risk management provisions. The template is adaptable to various investment purposes while maintaining adherence to UAE Central Bank regulations and local banking practices, making it suitable for both domestic and international investment transactions within the UAE jurisdiction.

What sections should be included in a Investment Loan Contract?

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the investment loan, purpose, and basic transaction structure

3. Definitions and Interpretation: Key terms, construction rules, and interpretation principles

4. Facility Amount and Purpose: Specification of loan amount, currency, and permitted use of funds

5. Conditions Precedent: Prerequisites for loan disbursement including required documentation

6. Drawdown Mechanics: Procedures and requirements for accessing the loan funds

7. Interest and Profit Share: Interest calculation, payment terms, and profit-sharing structure if applicable

8. Repayment Terms: Schedule of repayments, prepayment provisions, and payment mechanics

9. Security and Collateral: Details of security arrangements and collateral requirements

10. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

11. Covenants: Positive and negative obligations of the borrower during the loan term

12. Events of Default: Circumstances constituting default and consequences

13. Fees and Expenses: All applicable fees, charges, and cost allocation

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

What sections are optional to include in a Investment Loan Contract?

1. Islamic Finance Provisions: Required for Sharia-compliant transactions, including specific structuring and terminology

2. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated

3. Investment Project Specifics: Detailed provisions about the specific investment project being funded

4. Security Agent Provisions: Required when a security agent is appointed to hold security on behalf of multiple lenders

5. Intercreditor Provisions: Required when there are multiple creditors with different priorities

6. Currency Conversion: Required for multi-currency facilities or when conversion rights are granted

7. Environmental Compliance: Required for projects with environmental impact considerations

8. Political Risk Insurance: Required for large international investments or sensitive sectors

What schedules should be included in a Investment Loan Contract?

1. Schedule 1 - Facility Summary: Key commercial terms including amount, tenure, and pricing

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

3. Schedule 3 - Drawdown Notice Form: Standard form for requesting loan disbursements

4. Schedule 4 - Repayment Schedule: Detailed amortization schedule if applicable

5. Schedule 5 - Security Documents: List and copies of all security documentation

6. Schedule 6 - Financial Covenants: Detailed financial ratios and reporting requirements

7. Appendix A - Project Business Plan: Detailed investment project description and projections

8. Appendix B - Property Documents: Required for real estate-backed investments

9. Appendix C - Corporate Authorizations: Corporate approvals and authorization documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Loan Agreement

Cost

Free to use
Relevant legal definitions













































Clauses


































Relevant Industries

Banking and Financial Services

Real Estate and Construction

Manufacturing and Industrial

Technology and Innovation

Healthcare and Life Sciences

Energy and Natural Resources

Infrastructure Development

Hospitality and Tourism

Retail and Commercial

Transportation and Logistics

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Banking

Investment Banking

Credit

Islamic Banking

Project Finance

Relevant Roles

Chief Financial Officer

Legal Counsel

Investment Manager

Finance Director

Compliance Officer

Risk Manager

Corporate Banker

Investment Banker

Treasury Manager

Credit Analyst

Corporate Finance Manager

Legal Director

Banking Relationship Manager

Islamic Finance Specialist

Project Finance Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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