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Revolving Line Of Credit Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Revolving Line Of Credit Agreement

"I need a UAE-law governed Revolving Line of Credit Agreement for AED 10 million facility between Emirates Bank as lender and my manufacturing company as borrower, with security over inventory and receivables, to be executed by March 2025."

Document background
This Revolving Line of Credit Agreement is designed for use in the United Arab Emirates, providing a flexible financing solution that allows borrowers to access funds on a revolving basis up to a predetermined limit. The document is structured to comply with UAE Federal Laws, including the Commercial Code, Civil Code, and Central Bank regulations, with optional provisions for Sharia compliance. It is typically used when businesses require ongoing access to working capital, seasonal financing, or project-based funding. The agreement includes comprehensive provisions for facility utilization, security arrangements, financial covenants, and monitoring requirements, while incorporating specific UAE regulatory requirements for banking and finance transactions. Essential elements include drawdown mechanics, interest calculations (or profit rates for Islamic structures), repayment terms, and events of default, all tailored to the UAE legal framework.
Suggested Sections

1. Parties: Identification of the lender(s) and borrower(s), including their legal status and registered addresses

2. Background: Context of the credit facility and purpose of the agreement

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms and calculation methodologies

4. Facility Details: Specification of the credit limit, purpose, availability period, and repayment terms

5. Conditions Precedent: Prerequisites that must be satisfied before the facility becomes available

6. Drawdown Mechanics: Procedures and requirements for requesting and making drawdowns under the facility

7. Interest and Fees: Interest calculation method, payment dates, default interest, and applicable fees

8. Repayment Terms: Terms for repayment including minimum payments, prepayment provisions, and payment mechanics

9. Representations and Warranties: Statements of fact and assurances given by the borrower

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

11. Events of Default: Circumstances constituting default and consequences thereof

12. Security: Overview of security arrangements and enforcement rights

13. Changes to Parties: Rules regarding assignment, transfer, and delegation by either party

14. Notices: Communication procedures between parties

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

16. Execution: Signature blocks and execution formalities

Optional Sections

1. Islamic Finance Provisions: Required when the facility needs to be Sharia-compliant, including specific structures like Murabaha

2. Syndication Provisions: Required for facilities involving multiple lenders, including agency and participation arrangements

3. Foreign Currency Provisions: Required when drawdowns or repayments may be in multiple currencies

4. Parent Company Guarantee: Required when parent company support is part of the credit structure

5. Account Bank Provisions: Required when specific account maintenance and monitoring arrangements are needed

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

7. Security Trustee Provisions: Required in complex security arrangements involving multiple secured parties

8. Commodity Trading Provisions: Required for Islamic facilities using commodity murabaha structures

Suggested Schedules

1. Facility Limits and Pricing: Detailed breakdown of facility limits, interest rates, and fee structures

2. Form of Drawdown Request: Template for borrower to request drawdowns under the facility

3. Conditions Precedent Documents: List of required documents and conditions to be satisfied

4. Financial Covenants: Detailed financial ratios and calculations methodology

5. Security Documents: Forms of security documents and perfection requirements

6. Permitted Security Interests: List of security interests allowed under the facility

7. Form of Compliance Certificate: Template for periodic compliance reporting

8. Know Your Customer Requirements: List of required KYC documentation and updates

9. Commodity Trading Procedures: For Islamic facilities, procedures for commodity trades

10. Form of Transfer Certificate: Template for transferring interests in the facility

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








































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Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate and Construction

Manufacturing

Trading and Commerce

Retail

Healthcare

Technology

Energy and Utilities

Infrastructure

Hospitality

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Analysis

Islamic Banking

Operations

Company Secretarial

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Risk Manager

Compliance Officer

Credit Manager

Relationship Manager

Islamic Finance Specialist

Financial Controller

Company Secretary

Banking Operations Manager

Senior Finance Manager

Corporate Banking 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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