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Line Of Credit Agreement
"I need a Line of Credit Agreement for a UAE-based manufacturing company seeking a conventional credit facility of AED 10 million for working capital purposes, with quarterly interest payments and a final maturity date of March 15, 2025."
1. Parties: Identification of the lender (financial institution) and borrower, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility
3. Definitions: Detailed definitions of terms used throughout the agreement, including financial terms and facility-specific terminology
4. The Facility: Details of the credit facility including amount, purpose, and general terms
5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available
6. Utilization: Procedures and requirements for drawing down the facility, including notice requirements
7. Interest and Fees: Interest calculation methods, rates, payment periods, and all applicable fees
8. Repayment: Terms and conditions for repayment, including payment schedules and prepayment provisions
9. Security: Details of any security or collateral required for the facility
10. Representations and Warranties: Statements of fact and assurances given by the borrower
11. Covenants: Positive and negative obligations of the borrower during the facility period
12. Events of Default: Circumstances constituting default and consequences thereof
13. Changes to Parties: Provisions regarding assignment and transfer rights
14. Administration: Administrative aspects including notices, calculations, and payment mechanics
15. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
1. Islamic Banking Provisions: Required if the facility needs to be Sharia-compliant, including specific profit calculation methods
2. Multiple Currencies: Required if the facility can be drawn in multiple currencies
3. Increased Costs and Tax Provisions: Detailed provisions for handling changes in regulatory costs or tax implications
4. Security Trustee Provisions: Required if there are multiple lenders and security arrangements
5. Regulatory Compliance: Specific provisions required for compliance with UAE Central Bank regulations
6. Anti-Money Laundering Provisions: Detailed AML requirements if not covered in main representations
7. Foreign Exchange Provisions: Required if facility involves cross-border transactions
1. Schedule 1 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before facility availability
2. Schedule 2 - Utilization Request Form: Standard form for requesting drawdowns under the facility
3. Schedule 3 - Repayment Schedule: Detailed repayment schedule if applicable
4. Schedule 4 - Security Documents: List and copies of all security documents
5. Schedule 5 - Fees Schedule: Detailed breakdown of all applicable fees
6. Schedule 6 - Compliance Certificate: Form of periodic compliance certificate to be submitted by borrower
7. Schedule 7 - Financial Covenants Calculations: Methodology for calculating financial covenants
8. Appendix A - Form of Notices: Standard forms for various notices under the agreement
9. Appendix B - Know Your Customer Requirements: List of required KYC documentation and requirements
Authors
Banking and Financial Services
Real Estate and Construction
Manufacturing and Industrial
Trading and Commercial
Healthcare
Hospitality and Tourism
Retail
Technology and Communications
Energy and Utilities
Transportation and Logistics
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Banking
Credit
Operations
Islamic Banking
Corporate Secretariat
Chief Financial Officer
Finance Director
Treasury Manager
Legal Counsel
Compliance Officer
Credit Risk Manager
Relationship Manager
Corporate Banking Manager
Financial Controller
Managing Director
CEO
Head of Corporate Banking
Risk Officer
Islamic Banking Specialist
Corporate Secretary
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