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Commercial Loan Agreement
"Need a Commercial Loan Agreement for a QAR 15 million facility to a Qatar-based manufacturing company, with security over plant machinery and corporate guarantee, to be drawn down by March 2025."
1. Parties: Identification of lender(s) and borrower(s) with full legal names and registration details
2. Background: Context of the loan arrangement and brief description of the transaction
3. Definitions: Defined terms used throughout the agreement
4. Facility Details: Amount, purpose, and type of loan facility being provided
5. Conditions Precedent: Conditions that must be satisfied before drawdown
6. Drawdown Mechanics: Procedures and requirements for drawing down the loan
7. Interest and Fees: Interest calculation, payment terms, and applicable fees
8. Repayment Terms: Schedule and mechanics of loan repayment
9. Representations and Warranties: Statements of fact and assurances given by the borrower
10. Covenants: Positive and negative obligations of the borrower during the loan term
11. Events of Default: Circumstances that trigger default and lender's remedies
12. Security: Details of collateral and security arrangements
13. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law
1. Islamic Finance Provisions: Required if the loan needs to be Shariah-compliant, including alternative interest structures
2. Syndication Provisions: Required for loans involving multiple lenders, including agency and participation arrangements
3. Foreign Currency Provisions: Required if the loan is not in Qatari Riyal, addressing exchange rate risks and payments
4. Tax Provisions: Detailed tax arrangements if cross-border elements are involved
5. Assignment and Transfer: Required if the loan may be transferred or syndicated in the future
6. Account Bank Arrangements: Required if specific banking arrangements or account structures are needed
7. Intercreditor Provisions: Required if there are multiple creditors with different priorities
1. Conditions Precedent Documents: List of required documents and conditions to be satisfied
2. Form of Drawdown Request: Template for borrower to request loan disbursement
3. Repayment Schedule: Detailed schedule of repayment dates and amounts
4. Security Documents: Forms of security documents and perfection requirements
5. Financial Covenants: Detailed financial ratios and calculations
6. Fees Schedule: Breakdown of all applicable fees and charges
7. Form of Compliance Certificate: Template for periodic compliance reporting
8. Contact Details: List of authorized representatives and contact information
Authors
Banking & Financial Services
Real Estate & Construction
Manufacturing & Industrial
Energy & Natural Resources
Retail & Commercial
Healthcare
Technology & Telecommunications
Transportation & Logistics
Hospitality & Tourism
Trading & Import/Export
Legal
Finance
Corporate Banking
Risk Management
Compliance
Treasury
Credit Administration
Corporate Advisory
Documentation
Operations
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Compliance Officer
Credit Risk Manager
Relationship Manager
Treasury Manager
Financial Controller
Corporate Banking Manager
Legal Director
Commercial Director
Risk Officer
Transaction Manager
Documentation Specialist
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