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Revolving Loan Agreement for United Arab Emirates

Revolving Loan Agreement Template for United Arab Emirates

A comprehensive template for a revolving loan facility agreement governed by UAE law, designed to establish a flexible borrowing arrangement where the borrower can draw down, repay, and re-draw loans up to an agreed facility limit. The agreement incorporates key requirements under UAE Federal Laws, Central Bank regulations, and commercial banking practices, while considering Sharia law principles where applicable. It includes detailed provisions for facility mechanics, conditions precedent, representations, covenants, and events of default, all structured to comply with UAE legal requirements and banking regulations.

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What is a Revolving Loan Agreement?

This Revolving Loan Agreement Template is designed for use in the United Arab Emirates, providing a framework for establishing flexible credit facilities between financial institutions and corporate borrowers. The template is structured to comply with UAE Federal Law No. 5 of 1985 (Civil Code), UAE Federal Law No. 18 of 1993 (Commercial Code), and UAE Central Bank regulations. It includes provisions for multiple drawdowns and repayments, interest calculations in accordance with UAE banking regulations, and appropriate security arrangements. The template can be adapted for both conventional and Islamic finance structures, incorporating necessary provisions for Sharia compliance where required. It is particularly suitable for working capital financing, general corporate purposes, and ongoing business operations where flexibility in borrowing is needed.

What sections should be included in a Revolving Loan Agreement?

1. Parties: Identification of the lender(s) and borrower(s) with full legal names and addresses

2. Background: Recitals explaining the context and purpose of the revolving facility

3. Definitions and Interpretation: Detailed definitions of terms used and interpretation rules

4. The Facility: Core terms of the revolving facility including amount, purpose, and revolving nature

5. Conditions Precedent: Prerequisites for drawdown and continuing conditions

6. Drawdown Mechanics: Procedures and requirements for utilizing the facility

7. Repayment and Prepayment: Terms for repayment, prepayment rights and obligations

8. Interest and Fees: Interest calculation, payment terms, and applicable fees

9. Representations and Warranties: Borrower's confirmations and ongoing representations

10. Covenants: Positive and negative undertakings of the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Assignment and transfer provisions

13. Administration: Payment mechanics, calculations, and notices

14. Governing Law and Enforcement: Choice of law and jurisdiction provisions

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

1. Security: Details of any security arrangements - include if facility is secured

2. Islamic Finance Provisions: Specific provisions for Sharia compliance - include if Islamic finance principles apply

3. Agent Provisions: Administrative and security agent provisions - include for syndicated facilities

4. Intercreditor Provisions: Ranking and priority provisions - include if multiple creditors involved

5. Currency Provisions: Multiple currency mechanics - include if facility can be drawn in multiple currencies

6. Special Drawing Rights: Specific conditions for specialized drawings - include if facility has special purpose provisions

7. Guarantee: Guarantee terms - include if there are guarantors

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

What schedules should be included in a Revolving Loan Agreement?

1. Form of Drawdown Request: Standard form for requesting utilization of the facility

2. Conditions Precedent Documents: List of required documents and conditions

3. Form of Compliance Certificate: Template for periodic compliance certification

4. Calculation of Interest: Detailed interest calculation mechanisms and examples

5. Repayment Schedule: If applicable, schedule of repayment dates and amounts

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

7. Security Documents: Forms of security documents if applicable

8. Financial Covenants: Detailed financial covenant calculations and thresholds

9. Contact Details: Administrative and notice details for all parties

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

Retail & Consumer Goods

Healthcare & Pharmaceuticals

Technology & Communications

Energy & Utilities

Transportation & Logistics

Hospitality & Tourism

Trading & Distribution

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Commercial

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Relationship Manager

Credit Risk Manager

Compliance Officer

Banking Operations Manager

Finance Manager

Commercial Director

Corporate Banking Officer

Legal Director

Transaction Manager

Risk Officer

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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