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Supplemental Loan Agreement for United Arab Emirates

Supplemental Loan Agreement Template for United Arab Emirates

A Supplemental Loan Agreement under UAE law is a formal legal document that modifies, amends, or supplements an existing loan agreement between parties. It operates within the framework of UAE Federal Laws, particularly the UAE Civil Code and Commercial Code, and must comply with UAE Central Bank regulations. The document typically addresses changes to loan terms, additional security arrangements, or modifications to existing obligations while maintaining compliance with both conventional banking practices and, where applicable, Islamic finance principles. It serves as a crucial instrument for updating lending arrangements while preserving the core structure of the original agreement.

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What is a Supplemental Loan Agreement?

A Supplemental Loan Agreement is utilized when parties need to modify or add terms to an existing loan arrangement without completely replacing the original agreement. This document type is particularly important in the UAE's dynamic financial landscape, where changing business conditions may necessitate amendments to existing financing arrangements. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 18 of 1993 (Commercial Code), as well as Central Bank regulations. Supplemental Loan Agreements typically address changes such as loan amount adjustments, interest rate modifications, security arrangements, repayment schedules, or the addition of new parties. They are commonly used in both conventional and Islamic financing structures, requiring careful consideration of both traditional banking practices and Sharia compliance where applicable.

What sections should be included in a Supplemental Loan Agreement?

1. Parties: Identification of the lender(s), borrower(s), and any guarantors or other relevant parties

2. Background: Reference to the original loan agreement, reason for supplemental agreement, and current status

3. Definitions: Key terms used in the agreement, including both new definitions and references to original definitions that remain applicable

4. Relationship with Original Agreement: Clarification of how this supplement relates to and affects the original agreement

5. Amendments to Original Agreement: Specific modifications to original agreement terms, clearly identifying which sections are being amended

6. Additional Terms: Any new terms being introduced that were not part of the original agreement

7. Conditions Precedent: Conditions that must be satisfied before the supplemental agreement becomes effective

8. Representations and Warranties: Updated or additional representations and warranties of the parties

9. Continuation of Original Agreement: Confirmation that unmodified terms of original agreement remain in full force and effect

10. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction for dispute resolution

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

1. Additional Security: Include if new security arrangements are being added to the loan structure

2. Islamic Finance Compliance: Required if the loan needs to comply with Sharia principles

3. Change in Parties: Include if there are any assignments, transfers, or additional parties being added

4. Fee Arrangements: Include if there are changes to existing fee structures or new fees being introduced

5. Tax Provisions: Include if there are specific tax implications or changes to tax arrangements

6. Currency Provisions: Required if the loan involves multiple currencies or currency conversion arrangements

7. Force Majeure: Include if specific force majeure provisions need to be added or modified

What schedules should be included in a Supplemental Loan Agreement?

1. Schedule 1 - Amended Loan Terms: Detailed listing of specific terms being amended, including amounts, dates, and rates

2. Schedule 2 - Conditions Precedent Documents: List of documents required to be delivered before effectiveness

3. Schedule 3 - Form of Additional Security Documents: Ƶ or forms for any new security arrangements

4. Schedule 4 - Amended Repayment Schedule: Updated repayment schedule if payment terms are modified

5. Appendix A - Original Loan Agreement: Copy of the original loan agreement for reference

6. Appendix B - Corporate Authorizations: Updated corporate approvals and authorizations for the supplemental agreement

7. Appendix C - Legal Opinions: Required legal opinions confirming validity and enforceability of the supplemental agreement

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

Energy & Resources

Healthcare

Technology & Telecommunications

Retail & Consumer

Infrastructure & Transport

Hospitality & Tourism

Trading & Commerce

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Secretariat

Commercial Operations

Banking Operations

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Risk Manager

Credit Manager

Banking Relationship Manager

Finance Manager

Company Secretary

Commercial Director

Transaction Manager

Loan Officer

Financial Controller

Industries








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