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Trade Credit Agreement Template for Qatar

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Key Requirements PROMPT example:

Trade Credit Agreement

"I need a Trade Credit Agreement under Qatar law for a QAR 5 million facility between Al Manaar Bank and Gulf Trading LLC, with security over the borrower's inventory and a corporate guarantee from the parent company."

Document background
The Trade Credit Agreement is a crucial document used in Qatar's commercial landscape when businesses require credit facilities for their trading operations. It is particularly relevant in situations where a financial institution extends credit to a business for financing their trade operations, inventory purchases, or working capital needs. The agreement must comply with Qatar's Civil Code, Commercial Code, and banking regulations, while potentially incorporating Shariah-compliant structures where required. It typically includes detailed provisions on credit limits, drawdown mechanisms, repayment terms, security arrangements, and compliance requirements. The document is essential for businesses operating in Qatar's trading sector and needs to account for local regulatory requirements, including those of the Qatar Central Bank and, where applicable, the Qatar Financial Centre.
Suggested Sections

1. Parties: Identification of the credit provider and the borrower, including full legal names and registration details

2. Background: Context of the trade credit arrangement and business relationship between the parties

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

4. Credit Facility: Details of the credit facility, including credit limit, purpose, and availability period

5. Interest and Fees: Specification of applicable interest rates, fees, and charges

6. Payment Terms: Payment obligations, including repayment schedule, method of payment, and currency

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

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Ongoing obligations of the borrower during the term of the agreement

10. Events of Default: Circumstances constituting default and consequences thereof

11. Security: Details of any security or guarantee arrangements

12. Governing Law and Jurisdiction: Specification of Qatar law as governing law and jurisdiction for disputes

Optional Sections

1. Islamic Finance Provisions: Specific provisions ensuring Shariah compliance, used when the agreement needs to be Shariah-compliant

2. Insurance: Requirements for insurance coverage, used when specific assets or transactions need to be insured

3. Assignment and Transfer: Provisions regarding the ability to transfer rights or obligations, used in more complex commercial arrangements

4. Anti-Money Laundering Compliance: Specific AML obligations, used when required by the nature of the business or regulatory requirements

5. Force Majeure: Provisions dealing with unforeseen circumstances, used when specific risk allocation is needed

6. Confidentiality: Provisions protecting sensitive information, used when dealing with commercially sensitive arrangements

7. Multiple Drawing Provisions: Procedures for multiple drawdowns, used for revolving credit facilities

Suggested Schedules

1. Credit Limit and Pricing Schedule: Detailed breakdown of credit limits, interest rates, and fee structures

2. Form of Drawdown Notice: Template for requesting drawdowns under the facility

3. Security Documents: Forms of security documents and guarantees

4. Conditions Precedent Documents: List of required documents and conditions to be satisfied

5. Repayment Schedule: Detailed schedule of repayment dates and amounts

6. Authorized Signatories: List of persons authorized to act on behalf of each party

7. Compliance Certificates: Forms for periodic compliance reporting

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

International Trade

Manufacturing

Retail

Wholesale

Import/Export

Construction

Energy

Maritime & Shipping

Logistics & Supply Chain

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Commercial

Credit Control

Trade Finance

Corporate Banking

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Credit Risk Manager

Commercial Director

Legal Counsel

Compliance Officer

Trade Finance Manager

Account Manager

Credit Controller

Financial Controller

Business Development Manager

Risk Management Officer

Corporate Banking 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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