¶¶Òõ¶ÌÊÓƵ

The Letter of Credit Loan Agreement is a crucial document used in Qatar's banking sector when establishing Letter of Credit facilities for corporate clients engaged in international trade. It sets out the framework under which a bank will issue Letters of Credit on behalf of the borrower, typically used for import/export transactions. The agreement must comply with Qatar's banking regulations, particularly Qatar Central Bank directives, while incorporating international banking practices such as UCP 600. This document is essential for businesses requiring trade finance facilities and includes detailed provisions on facility limits, security requirements, operational procedures, and the rights and obligations of all parties. The agreement becomes particularly important in Qatar's context given the country's significant international trade activities and strict banking regulatory environment.

1. Parties: Identification of the Lender (Bank), Borrower, and any guarantors

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

3. Definitions: Key terms used throughout the agreement including banking, financial and LC-specific terminology

4. Facility Details: Specific terms of the LC facility including amount, purpose, and types of LCs permitted

5. Conditions Precedent: Documents and conditions required before the facility becomes available

6. Utilization: Process and requirements for requesting and issuing LCs under the facility

7. Commission and Fees: LC commission rates, processing fees, and other charges

8. Repayment Terms: Payment obligations, including LC drawings and reimbursement requirements

9. Security: Collateral and security arrangements required for the facility

10. Representations and Warranties: Borrower's confirmations regarding their legal and financial status

11. Covenants: Ongoing obligations of the Borrower during the facility period

12. Events of Default: Circumstances that constitute default and their consequences

13. Bank's Rights and Obligations: Powers and duties of the bank in relation to the LC facility

14. Governing Law and Jurisdiction: Qatar law provisions and jurisdiction for disputes

15. Notices: Communication procedures between parties