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Loan Settlement Agreement Template for Qatar

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Key Requirements PROMPT example:

Loan Settlement Agreement

"I need a Loan Settlement Agreement for a QAR 5 million corporate loan from Qatar National Bank, to be settled in 12 monthly installments starting March 2025, with a 15% reduction in the outstanding amount if all payments are made on time."

Document background
The Loan Settlement Agreement is a crucial document used when parties wish to formally resolve an existing loan obligation under Qatar law. It is particularly relevant in situations where the original loan terms need to be modified, a settlement amount has been negotiated, or a payment plan needs to be established. The agreement must comply with Qatar's Civil Code (Law No. 22 of 2004) and, where applicable, Islamic banking principles, making it suitable for both conventional and Islamic loans. It typically includes detailed provisions about the original loan, agreed settlement amount, payment schedule, security arrangements, and release terms. This document is essential for financial institutions and borrowers in Qatar looking to document loan settlements in a legally binding manner while ensuring regulatory compliance.
Suggested Sections

1. Parties: Identification of the lender and borrower, including full legal names and addresses

2. Background: Recitals detailing the original loan agreement, current outstanding amount, and parties' intention to settle

3. Definitions: Definitions of key terms used throughout the agreement

4. Acknowledgment of Debt: Confirmation of the outstanding amount and borrower's acknowledgment of the debt

5. Settlement Terms: Details of the agreed settlement amount and any discount from the original debt

6. Payment Terms: Schedule of payments, payment method, and bank account details

7. Representations and Warranties: Statements by both parties regarding their capacity and authority to enter into the agreement

8. Release and Discharge: Terms of release upon completion of settlement payments

9. Confidentiality: Obligations regarding confidentiality of the settlement terms

10. Governing Law and Jurisdiction: Confirmation of Qatar law as governing law and jurisdiction for disputes

11. Notices: Process for serving notices under the agreement

12. Entire Agreement: Confirmation that this agreement supersedes all previous agreements regarding the settlement

13. Execution: Signature blocks and execution formalities

Optional Sections

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

2. Multiple Creditors: Required if there are multiple creditors involved in the settlement

3. Sharia Compliance: Specific provisions confirming compliance with Sharia principles, if required by the parties

4. Default Provisions: Consequences of default under the settlement agreement

5. Tax Provisions: Required if there are tax implications from the settlement

6. Assignment: Required if either party needs the right to assign their rights under the agreement

7. Force Majeure: Required if parties want specific provisions for unforeseen circumstances affecting performance

Suggested Schedules

1. Schedule 1 - Original Loan Documentation: Copies of the original loan agreement and related documents

2. Schedule 2 - Payment Schedule: Detailed schedule of settlement payments including dates and amounts

3. Schedule 3 - Calculation of Settlement Amount: Breakdown of the settlement amount including any discounts applied

4. Schedule 4 - Security Details: Details of any security arrangements being maintained or released

5. Schedule 5 - Release Documentation: Form of release to be provided upon completion of settlement

6. Appendix A - Bank Account Details: Bank account details for settlement payments

7. Appendix B - Power of Attorney: If applicable, power of attorney documentation for signatories

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










































Clauses































Relevant Industries

Banking & Financial Services

Islamic Banking

Real Estate

Construction

Manufacturing

Retail

Healthcare

Education

Hospitality

Trading & Commerce

Oil & Gas

Technology

Relevant Teams

Legal

Finance

Credit Management

Risk & Compliance

Treasury

Debt Recovery

Islamic Banking

Corporate Banking

Retail Banking

Collections

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Legal Counsel

Compliance Officer

Risk Manager

Treasury Manager

Debt Recovery Specialist

Banking Manager

Settlement Officer

Corporate Lawyer

Financial Controller

Loan Officer

Collections Manager

Islamic Banking Specialist

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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