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Secured Loan Agreement for United Arab Emirates

Secured Loan Agreement Template for United Arab Emirates

A comprehensive template for a Secured Loan Agreement governed by United Arab Emirates law, designed to document lending arrangements where the loan is backed by specific collateral or security interests. The agreement incorporates key requirements under UAE federal laws, including the UAE Civil Code, Commercial Transactions Law, and relevant security registration requirements. It addresses both conventional and Sharia-compliant lending structures, featuring provisions for security creation, perfection, and enforcement in accordance with UAE legislation. The document includes necessary provisions for compliance with UAE Central Bank regulations and local security registration requirements.

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What is a Secured Loan Agreement?

This Secured Loan Agreement Template is designed for use in the United Arab Emirates, serving as a foundational document for lending transactions where loans are backed by collateral or security interests. The template is structured to comply with UAE federal laws, including the Civil Code, Commercial Transactions Law, and security-specific regulations. It accommodates both conventional and Islamic financing structures, making it versatile for various lending scenarios in the UAE market. The document incorporates essential provisions for security creation, perfection, and enforcement, while ensuring compliance with UAE Central Bank regulations and local security registration requirements. This template is particularly useful for financial institutions, corporate lenders, and businesses engaging in secured lending transactions within the UAE jurisdiction, providing a comprehensive framework for documenting the lending relationship and associated security arrangements.

What sections should be included in a Secured Loan Agreement?

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

2. Background: Context of the loan arrangement and security being provided

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Security: Details of the assets provided as security and the nature of the security interest

6. Disbursement: Conditions and procedures for disbursement of the loan

7. Interest and Fees: Interest rate, calculation method, and any associated fees in compliance with UAE law

8. Repayment Terms: Schedule and method of repayment, including installment details

9. Representations and Warranties: Statements of fact and assurances from the Borrower

10. Covenants: Ongoing obligations of the Borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Lender's rights and remedies upon default, including security enforcement

13. Registration and Notices: Requirements for registering the security interest and notice provisions

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

What sections are optional to include in a Secured Loan Agreement?

1. Guarantees: Include when there is a third-party guarantor for the loan

2. Insurance: Include when specific insurance requirements are needed for the secured assets

3. Islamic Finance Provisions: Include when the loan needs to be Sharia-compliant

4. Security Agent: Include when there are multiple lenders requiring a security agent

5. Further Assurance: Include when additional security perfection steps may be required

6. Tax Provisions: Include when specific tax considerations need to be addressed

7. Assignment and Transfer: Include when the loan may be transferable

8. Intercreditor Provisions: Include when there are multiple creditors with different priorities

What schedules should be included in a Secured Loan Agreement?

1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest rates, and payment schedule

2. Schedule 2 - Security Assets: Detailed description and documentation of all assets provided as security

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before loan disbursement

4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursement

5. Schedule 5 - Repayment Schedule: Detailed amortization schedule

6. Schedule 6 - Security Documents: Forms of various security documents required

7. Appendix A - Registration Requirements: Details of required registrations with various UAE authorities

8. Appendix B - Form of Compliance Certificate: Template for periodic compliance certification

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

Sector

Banking

Cost

Free to use
Relevant legal definitions






















































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing & Industrial

Trading & Commercial

Healthcare

Hospitality & Tourism

Technology & Communications

Energy & Resources

Transport & Logistics

Retail & Consumer Goods

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit Administration

Islamic Banking

Security & Collateral

Documentation

Corporate Banking

Relevant Roles

Legal Counsel

Finance Manager

Credit Risk Officer

Compliance Officer

Corporate Treasurer

Chief Financial Officer

Banking Relationship Manager

Security Registration Officer

Documentation Manager

Islamic Finance Specialist

Loan Officer

Risk Manager

Transaction Manager

Portfolio 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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