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Inter Corporate Loan Agreement for United Arab Emirates

Inter Corporate Loan Agreement Template for United Arab Emirates

A comprehensive agreement governed by UAE law that establishes the terms and conditions for a loan between corporate entities. The document details the loan facility, including principal amount, interest calculations (considering UAE banking regulations and potential Sharia compliance requirements), repayment terms, security arrangements, and events of default. It incorporates specific UAE legal requirements under the Civil Code and Commercial Transactions Law, while providing mechanisms for enforcement and dispute resolution within the UAE judicial system.

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Inter Corporate Loan Agreement

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What is a Inter Corporate Loan Agreement?

The Inter Corporate Loan Agreement is essential for businesses in the UAE seeking to establish formal lending arrangements outside traditional banking channels. This document is typically used when one corporation provides financial facilities to another, requiring careful structuring to comply with UAE Civil Code, Commercial Transactions Law, and where applicable, Sharia principles. The agreement becomes particularly relevant in group company financing, strategic partnerships, or when traditional banking options are not preferred. It must address specific UAE requirements regarding interest calculations, security registration, and enforcement mechanisms while ensuring compliance with local corporate lending regulations. The document includes comprehensive provisions for loan terms, security arrangements, corporate guarantees, and default scenarios, all tailored to the UAE legal framework.

What sections should be included in a Inter Corporate Loan Agreement?

1. Parties: Identification of the lender and borrower corporations, including registration details as required under UAE law

2. Background: Context of the loan arrangement and relationship between the parties

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. The Facility: Details of the loan amount, purpose, and availability

5. Interest and Fees: Interest rate structure, calculation method, and any associated fees (compliant with UAE banking regulations)

6. Repayment Terms: Schedule of repayment, prepayment provisions, and payment mechanics

7. Conditions Precedent: Documents and conditions required before the loan becomes available

8. Representations and Warranties: Statements of fact and assurances from the borrower

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

10. Events of Default: Circumstances that would trigger default and acceleration of the loan

11. Security: Core security provisions and enforcement rights

12. Changes to Parties: Assignment and transfer provisions

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction of UAE courts

What sections are optional to include in a Inter Corporate Loan Agreement?

1. Multiple Drawdown Provisions: Required when the loan is to be drawn in multiple tranches

2. Syndication Provisions: Needed if there's possibility of the loan being syndicated to multiple lenders

3. Islamic Finance Provisions: Required if the loan needs to be Sharia-compliant

4. Tax Provisions: Detailed tax provisions if cross-border elements exist

5. Additional Security Rights: Required for specific types of security such as share pledges or asset mortgages

6. Guarantee Provisions: Needed if there are corporate or personal guarantees

7. Agency Provisions: Required in case of multiple lenders requiring an agent

8. Currency Provisions: Required if loan or repayments involve multiple currencies

What schedules should be included in a Inter Corporate Loan Agreement?

1. Schedule 1 - Conditions Precedent Documents: List of all required documents and conditions to be satisfied before drawdown

2. Schedule 2 - Form of Drawdown Request: Template for requesting disbursement of the loan

3. Schedule 3 - Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Schedule 4 - Security Documents: List and copies of all security documents

5. Schedule 5 - Notice Details: Detailed contact information for all parties

6. Schedule 6 - Form of Compliance Certificate: Template for periodic compliance reporting

7. Appendix A - Calculation of Interest: Detailed methodology for interest calculation

8. Appendix B - Form of Transfer Certificate: Template for transferring loan participation if allowed

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 & Finance

Real Estate & Construction

Manufacturing & Industrial

Technology & Telecommunications

Healthcare & Pharmaceuticals

Retail & Consumer Goods

Energy & Resources

Transport & Logistics

Professional Services

Media & Entertainment

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit

Investment

Corporate Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Finance Manager

Financial Controller

Risk Manager

Compliance Officer

Company Secretary

Credit Manager

Investment Director

General Counsel

Corporate Banking Manager

Business Development Director

Financial Analyst

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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