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Cash Credit Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Cash Credit Agreement

"I need a Cash Credit Agreement for a UAE-based manufacturing company seeking a AED 5 million credit facility from Emirates NBD, with the facility to commence from March 2025 and including security over the company's equipment."

Document background
This Cash Credit Agreement template is designed for use in the United Arab Emirates banking sector, providing a structured framework for credit facility arrangements between financial institutions and borrowers. It is particularly relevant when establishing revolving credit lines, overdraft facilities, or term loans. The document incorporates essential elements required by UAE Central Bank regulations, including facility terms, interest calculations (both conventional and Islamic), security requirements, and enforcement mechanisms. It should be used when formalizing any cash credit arrangement, ensuring compliance with UAE Federal Law No. 14 of 2018 (UAE Central Bank Law) and related banking regulations. The agreement is adaptable for both corporate and individual borrowers, including necessary provisions for security, guarantees, and default scenarios while maintaining alignment with UAE legal requirements.
Suggested Sections

1. Parties: Identification of the lender (bank/financial institution) and borrower with full legal names and addresses

2. Background: Context of the credit facility and relationship between parties

3. Definitions: Key terms used throughout the agreement including Facility Amount, Interest Rate, Facility Period, etc.

4. Facility Terms: Details of the credit facility including amount, purpose, availability period

5. Interest and Fees: Interest calculation method, payment periods, applicable fees and charges

6. Drawdown: Conditions and procedures for drawing down the credit facility

7. Repayment Terms: Repayment schedule, method, and prepayment provisions

8. Representations and Warranties: Borrower's confirmations regarding their legal and financial status

9. Covenants: Positive and negative obligations of the borrower during the facility period

10. Events of Default: Circumstances constituting default and consequences

11. Security: Details of any security or guarantee required for the facility

12. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

Optional Sections

1. Islamic Banking Provisions: Required if the facility needs to be Sharia-compliant, including relevant Islamic financing structures

2. Currency Provisions: Required for facilities involving multiple currencies or foreign currency transactions

3. Tax Provisions: Required when tax implications need specific addressing, particularly for corporate borrowers

4. Assignment and Transfer: Include when the facility may be transferred or syndicated

5. Agency Provisions: Required for syndicated facilities involving multiple lenders

6. Joint and Several Liability: Required when there are multiple borrowers

7. Insurance: Required when specific insurance coverage is mandatory for the facility

Suggested Schedules

1. Facility Summary: Key commercial terms including facility amount, interest rate, tenor, and purpose

2. Conditions Precedent: List of documents and conditions required before facility availability

3. Form of Drawdown Notice: Template for borrower to request facility drawdown

4. Repayment Schedule: Detailed schedule of repayment dates and amounts

5. Fee Schedule: Detailed breakdown of all applicable fees and charges

6. Security Documents: List and copies of all security documents

7. Calculation of Interest: Detailed methodology for interest calculation

8. Know Your Customer Requirements: List of required KYC documents and information

Authors

Alex Denne

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

Relevant legal definitions







































Clauses































Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Trading

Retail

Healthcare

Education

Hospitality

Transportation

Technology

Energy

Infrastructure

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Compliance

Corporate Banking

Operations

Credit Administration

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Manager

Risk Manager

Legal Counsel

Compliance Officer

Relationship Manager

Credit Analyst

Corporate Banking Officer

Finance Manager

Financial Controller

Banking Operations Manager

Credit Risk Officer

Legal Director

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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