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Loan Payment Agreement
"I need a Loan Payment Agreement for a UAE-based manufacturing company borrowing AED 5 million, secured against industrial equipment, with quarterly repayments starting March 2025 and including default provisions compliant with UAE commercial law."
1. Parties: Identification of the Lender and Borrower with full legal names and addresses
2. Background: Context of the loan agreement, including the loan request and acceptance
3. Definitions: Definitions of key terms used throughout the agreement
4. Loan Amount and Purpose: Specification of the principal amount and intended use of the loan
5. Payment Terms: Details of repayment schedule, installment amounts, and payment methods
6. Interest Rate: Specification of interest rate (if applicable), calculation method, and compliance with UAE regulations
7. Security: Details of any collateral or security provided for the loan
8. Representations and Warranties: Standard declarations by the borrower regarding their capacity and authority
9. Borrower's Covenants: Ongoing obligations of the borrower during the loan term
10. Events of Default: Circumstances constituting default and consequences
11. Remedies: Lender's rights and remedies in case of default
12. Notices: Process for formal communications between parties
13. Governing Law and Jurisdiction: Specification of UAE law and jurisdiction
14. Execution: Signature blocks and execution requirements
1. Islamic Finance Provisions: Required if the loan needs to be Sharia-compliant, including specific terms for Islamic financing structures
2. Guarantor Provisions: Required if there is a third-party guarantor for the loan
3. Insurance Requirements: Details of required insurance coverage for secured assets, if applicable
4. Prepayment Terms: Terms and conditions for early repayment of the loan
5. Assignment and Transfer: Terms regarding the ability to transfer or assign rights under the agreement
6. Force Majeure: Provisions for unforeseen circumstances affecting loan repayment
7. Confidentiality: Terms regarding the confidentiality of the agreement and related information
1. Schedule 1 - Repayment Schedule: Detailed amortization schedule showing payment dates and amounts
2. Schedule 2 - Security Details: Detailed description of any collateral or security provided
3. Schedule 3 - Conditions Precedent: List of conditions to be satisfied before loan disbursement
4. Schedule 4 - Form of Draw Down Notice: Template for requesting loan disbursement
5. Schedule 5 - Form of Compliance Certificate: Template for periodic compliance certification
6. Appendix A - Required Documents: List of documents required from the borrower
7. Appendix B - Calculation of Interest: Detailed methodology for interest calculation
Authors
Banking & Financial Services
Real Estate
Construction
Manufacturing
Retail
Healthcare
Education
Technology
Hospitality
Small and Medium Enterprises
Corporate Services
Islamic Banking
Legal
Finance
Compliance
Credit Risk
Corporate Banking
Islamic Banking
Treasury
Collections
Business Development
Operations
Chief Financial Officer
Finance Manager
Legal Counsel
Compliance Officer
Credit Manager
Loan Officer
Account Manager
Banking Relationship Manager
Treasury Manager
Risk Manager
Corporate Banking Officer
Islamic Banking Specialist
Financial Controller
Collections Manager
Legal Director
Business Development Manager
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