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Guarantee In Loan Agreement Template for Qatar

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Key Requirements PROMPT example:

Guarantee In Loan Agreement

"I need a Guarantee in Loan Agreement for a Qatar real estate development project where our parent company will guarantee a QAR 50 million facility to be disbursed in March 2025, with the guarantee covering both principal and profit payments."

Document background
The Guarantee In Loan Agreement is a crucial security document used in Qatar-based financing transactions where additional security is required beyond the borrower's own covenant. This document is essential when a parent company, shareholder, or related entity provides support for a borrower's loan obligations. It must comply with Qatar Civil Code requirements for guarantees (Kafala), Qatar Central Bank regulations, and where applicable, Shariah principles. The guarantee typically covers all obligations under the main loan agreement, including principal, profit/interest, fees, and costs. The document is particularly important in project finance, corporate lending, and real estate financing where lenders require additional comfort on the credit risk. Given Qatar's specific legal requirements, the guarantee must be carefully structured to ensure enforceability while providing comprehensive protection for the lender.
Suggested Sections

1. Parties: Identification of the Guarantor, Lender (Beneficiary), and Principal Debtor

2. Background: Context of the guarantee, reference to the main loan agreement, and purpose of the guarantee

3. Definitions: Key terms used in the guarantee, including 'Guaranteed Obligations', 'Event of Default', and cross-references to loan agreement definitions

4. Guarantee and Indemnity: Core guarantee obligations, scope of guaranteed amounts, and nature of guarantee (conditional/unconditional)

5. Continuing Security: Provisions establishing the guarantee as continuing security until full discharge of obligations

6. Guarantor's Representations and Warranties: Fundamental statements about capacity, authority, and financial condition of the guarantor

7. Preservation of Rights: Lender's rights preservation, including ability to pursue guarantor without first claiming against principal debtor

8. Payments: Payment mechanics, currency provisions, and tax gross-up requirements

9. Costs and Expenses: Allocation of costs related to preparation and enforcement of the guarantee

10. Governing Law and Jurisdiction: Qatar law as governing law and jurisdiction provisions

Optional Sections

1. Islamic Finance Compliance: Required when the guarantee needs to be Shariah-compliant, including relevant scholar approvals and structure

2. Security: Include when the guarantee is supported by additional security from the guarantor

3. Financial Covenants: Include when the guarantor must maintain specific financial metrics

4. Co-Guarantors: Required when multiple guarantors are providing the guarantee, addressing joint and several liability

5. Currency Conversion: Include when guaranteed obligations are in multiple currencies

6. Assignment and Transfer: Include when rights under the guarantee may need to be assigned or transferred

7. Communications: Include detailed notice provisions when parties are in different jurisdictions

Suggested Schedules

1. Form of Demand: Standard form for making demands under the guarantee

2. Guaranteed Obligations: Detailed description or calculation of the guaranteed amounts

3. Conditions Precedent: List of documents required before guarantee becomes effective

4. Security Documents: If applicable, list and copies of related security documents

5. Shariah Structure: If applicable, diagram and description of Islamic finance structure

6. Corporate Authorizations: Copies of relevant corporate approvals and authorizations

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

Real Estate and Construction

Energy and Natural Resources

Infrastructure Development

Manufacturing

Trading and Commercial

Hospitality and Tourism

Healthcare

Technology and Telecommunications

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Finance

Credit

Islamic Banking

Commercial

Company Secretarial

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Commercial Director

Risk Manager

Compliance Officer

Corporate Finance Manager

Banking Relationship Manager

Credit Risk Officer

Islamic Finance Specialist

Corporate Secretary

Business Development Director

Investment 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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