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Loan Assumption Agreement Template for Qatar

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Key Requirements PROMPT example:

Loan Assumption Agreement

"I need a Loan Assumption Agreement under Qatar law for the transfer of a commercial property mortgage from ABC Real Estate LLC to XYZ Developments LLC, with the outstanding amount of QAR 15 million to be assumed effective March 1, 2025, with Qatar National Bank as the lender."

Document background
The Loan Assumption Agreement is a crucial document used when an existing borrower needs to transfer their loan obligations to a new party under Qatar law. This situation commonly arises in property sales where the buyer assumes the seller's mortgage, corporate restructurings, or business acquisitions where existing debt is transferred. The agreement must comply with Qatar's Civil Code, banking regulations, and potentially Islamic finance principles. It documents the lender's consent, specifies the outstanding loan amount, payment terms, and any security arrangements. The document addresses the tripartite relationship between the lender, original borrower, and assuming borrower, ensuring all parties' rights and obligations are clearly defined and protected under Qatari law.
Suggested Sections

1. Parties: Identifies the Lender, Original Borrower, and Assuming Borrower with full legal names and addresses

2. Background: Recitals describing the original loan agreement, outstanding amounts, and parties' intention to transfer the loan obligations

3. Definitions: Defines key terms including Original Loan Agreement, Assumption Date, Outstanding Amount, and other relevant terms

4. Assumption of Loan: Core provision detailing the assumption of loan obligations by the new borrower

5. Outstanding Amount and Terms: Confirms the outstanding loan amount and continuing terms of the original loan agreement

6. Representations and Warranties: Statements from all parties confirming their authority, capacity, and understanding of the assumption

7. Conditions Precedent: Requirements to be met before the assumption becomes effective

8. Effective Date and Closing: Specifies when the assumption takes effect and closing requirements

9. Lender's Rights and Consents: Confirms lender's consent and ongoing rights under the loan

10. Governing Law and Jurisdiction: Specifies Qatar law as governing law and relevant jurisdiction for disputes

11. Notices: Contact details and methods for formal communications between parties

Optional Sections

1. Security Arrangements: Required if existing security needs to be transferred or new security is being provided

2. Islamic Finance Compliance: Required if the loan needs to comply with Sharia principles

3. Original Borrower Release: Optional section releasing original borrower from future obligations

4. Guarantor Provisions: Required if there are guarantors involved in the original or assumed loan

5. Fee and Cost Allocation: Optional section detailing how assumption-related costs are allocated

6. Tax Provisions: Required if there are specific tax implications of the assumption to be addressed

7. Further Assurance: Optional section requiring parties to execute additional documents if needed

Suggested Schedules

1. Original Loan Agreement: Copy or summary of the original loan agreement being assumed

2. Outstanding Amount Schedule: Detailed breakdown of the outstanding loan amount, including principal, interest, and any other charges

3. Payment Schedule: Updated payment schedule reflecting the assumption terms

4. Security Documents: List and copies of any security documents being transferred or created

5. Required Consents: Copies of any third-party consents required for the assumption

6. Conditions Precedent Checklist: List of all conditions to be satisfied before assumption becomes effective

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

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Relevant Industries

Banking & Financial Services

Real Estate

Construction

Commercial Property

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Hospitality

Relevant Teams

Legal

Finance

Treasury

Credit

Risk Management

Compliance

Real Estate

Corporate Affairs

Banking Operations

Investment

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Manager

Credit Manager

Risk Manager

Compliance Officer

Property Manager

Real Estate Manager

Treasury Manager

Financial Controller

Corporate Secretary

Business Development Manager

Investment Manager

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