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The Letter of Credit Facility Agreement is a crucial document in Qatar's trade finance landscape, used when a company requires a formal arrangement with a bank to issue Letters of Credit for its international trade operations. The agreement is essential for businesses engaged in import/export activities and requires careful consideration of Qatar's banking regulations, including Qatar Central Bank requirements and Islamic finance principles where applicable. It establishes the relationship between the bank and the customer, setting out facility limits, security requirements, operational procedures, and compliance obligations. The document is particularly relevant given Qatar's position as a major trading hub and its significant international commercial activities. It must balance local regulatory requirements with international banking practices while ensuring adherence to Qatar's legal framework.

1. Parties: Identification of the Bank/Financial Institution and the Customer/Applicant

2. Background: Context of the facility agreement and relationship between parties

3. Definitions: Definitions of terms used throughout the agreement

4. Facility Terms: Core terms including facility amount, purpose, and validity period

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

6. Issuance Procedure: Process and requirements for LC issuance requests

7. Fees and Commissions: All applicable fees, charges, and commission structures

8. Security and Collateral: Details of security arrangements and collateral requirements

9. Representations and Warranties: Standard declarations made by the customer regarding their legal and financial status

10. Covenants: Ongoing obligations of the customer during the facility period

11. Events of Default: Circumstances constituting default and consequent remedies

12. Payments and Calculations: Payment terms, calculation methods, and currency provisions

13. Communications: Methods and requirements for formal communications between parties

14. Assignment and Transfer: Rules regarding transfer of rights and obligations

15. Governing Law and Jurisdiction: Specification of Qatar law as governing law and jurisdiction details