tiktok³ÉÈË°æ

All Countries
Banking
Parent Guarantee Agreement

Parent Guarantee Agreement Template for United Arab Emirates

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Parent Guarantee Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Parent Guarantee Agreement

"I need a Parent Guarantee Agreement under UAE law where our Dubai-based parent company guarantees a 5-year, AED 50 million loan facility that our subsidiary is taking from Emirates NBD Bank, with the guarantee to commence from March 1, 2025."

Celebrated by
Collaborations with
Investors
Document background
The Parent Guarantee Agreement is a critical instrument in UAE commercial practice, commonly used when a subsidiary company requires additional financial backing or credibility to enter into significant commercial or financial arrangements. This document is particularly relevant in scenarios where the subsidiary lacks sufficient credit history or financial strength to secure favorable terms independently. The agreement must comply with UAE Civil Code requirements and may need to consider Sharia law principles, especially regarding interest (riba) and uncertainty (gharar). The Parent Guarantee Agreement typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's rights and obligations. It's essential in various contexts, from project finance to general commercial transactions, and requires careful consideration of both UAE legal requirements and commercial practicalities.
Suggested Sections

1. Parties: Identification of the Guarantor (Parent Company), the Beneficiary, and the Principal Debtor (Subsidiary)

2. Background: Context of the guarantee, including details of the underlying obligation or facility being guaranteed

3. Definitions and Interpretation: Key terms used in the agreement and rules for interpretation

4. Guarantee and Indemnity: Core provisions setting out the guarantee obligations and indemnity

5. Scope of Guarantee: Specific details of what obligations are covered by the guarantee

6. Nature of Guarantee: Establishing that this is a continuing guarantee and primary obligation

7. Preservation of Rights: Provisions ensuring the guarantee remains valid despite changes to the underlying obligation

8. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

9. Payment Mechanics: Process and requirements for making payments under the guarantee

10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction for disputes

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Tax Gross-Up: Required if payments under the guarantee might be subject to tax deductions

2. Currency Indemnity: Needed for cross-border transactions involving multiple currencies

3. Islamic Finance Provisions: Required if the guarantee needs to be Sharia-compliant

4. Change of Guarantor: Needed if there's possibility of the guarantor being replaced or additional guarantors being added

5. Amendments and Waivers: Detailed procedures for modifying the guarantee terms, needed for complex transactions

6. Transferability: Required if the guarantee rights may be assigned or transferred

7. Multiple Guarantors: Required when more than one entity is providing the guarantee

8. Financial Covenants: Needed when specific financial conditions must be maintained by the guarantor

Suggested Schedules

1. Form of Demand: Template for making a demand under the guarantee

2. Guaranteed Obligations: Detailed list or description of the obligations being guaranteed

3. Corporate Authorizations: Copies of relevant board resolutions and powers of attorney

4. Guarantor Information: Details of the guarantor's corporate information and contact details

5. Underlying Agreement: Copy or summary of the agreement giving rise to the guaranteed obligations

6. Payment Instructions: Banking and account details for payments under the guarantee

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions

































Clauses






























Relevant Industries

Banking and Financial Services

Construction and Real Estate

Energy and Utilities

Manufacturing

Telecommunications

Retail and Consumer Goods

Healthcare

Technology

Infrastructure

Transportation and Logistics

Mining and Natural Resources

Industrial Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Corporate Secretariat

Compliance

Corporate Development

Commercial Operations

Credit Control

Executive Management

Relevant Roles

Chief Financial Officer

General Counsel

Legal Director

Finance Director

Treasury Manager

Corporate Finance Manager

Risk Manager

Company Secretary

Commercial Director

Chief Executive Officer

Legal Counsel

Financial Controller

Credit Manager

Compliance Officer

Corporate Development 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

Find the exact document you need

Promissory Note Guaranty

A UAE law-governed guarantee securing payment obligations under a promissory note, providing additional security to the note holder through a third-party guarantor's commitment.

find out more

Parent Guarantee Agreement

A UAE law-governed agreement where a parent company guarantees its subsidiary's obligations to a third party, typically used in commercial and financial transactions.

find out more

Performance Bond Agreement

A UAE-governed guarantee agreement where a financial institution ensures a contractor's performance through a monetary commitment to the project owner.

find out more

Payment Guarantee Agreement

A UAE law-governed agreement where a guarantor undertakes to secure the payment obligations of a debtor to a beneficiary, subject to UAE Civil and Commercial Codes.

find out more

Personal Guarantee Rental Agreement

A UAE-compliant legal document combining a rental agreement with a personal guarantee, securing tenant obligations through third-party assurance.

find out more

Personal Guarantee Lease Agreement

A UAE-governed agreement where a guarantor personally guarantees a tenant's lease obligations to a landlord, subject to UAE federal and emirate-specific laws.

find out more

Loan Guarantee Agreement

A UAE law-governed agreement where a guarantor secures a borrower's loan obligations, complying with UAE Civil Code requirements and banking regulations.

find out more

Joint Guarantee Agreement

A UAE-law governed agreement where multiple parties jointly guarantee the obligations of a debtor, establishing joint and several liability under UAE Civil Code requirements.

find out more

Guaranty Agreement

A UAE law-governed agreement where one party guarantees the obligations of another party to a beneficiary, structured in compliance with UAE Civil and Commercial Codes.

find out more

Guarantee Rental Agreement

UAE-governed agreement establishing a guarantee arrangement for rental property obligations, compliant with UAE Federal Law and emirate-specific regulations.

find out more

Guarantee And Collateral Agreement

A UAE law-governed agreement combining personal guarantees and asset-based security to secure financial or other obligations.

find out more

Continuing Guarantee Agreement

A UAE law-governed agreement where a guarantor provides continuing security for a debtor's present and future obligations to a creditor.

find out more

Guarantor Rental Agreement

UAE-governed agreement establishing rental terms and guarantor obligations to secure a tenant's lease performance, compliant with UAE Federal Law and local regulations.

find out more

Guarantor Contract

A UAE law-governed agreement where a Guarantor assumes responsibility for another party's obligations or debts to a Beneficiary, compliant with UAE Civil and Commercial laws.

find out more

Guarantor Tenancy Agreement

UAE-governed tenancy agreement featuring a third-party guarantor who guarantees the tenant's obligations to the landlord.

find out more

Rent Guarantee Agreement

A UAE law-governed agreement where a guarantor provides security for a tenant's rental obligations to a landlord, structured in compliance with UAE Federal Civil Code and local property laws.

find out more

Guarantee And Indemnity Agreement

A UAE law-governed agreement where a party guarantees another's obligations and provides indemnity protection, structured under UAE Civil Code requirements.

find out more

Contract Of Indemnity And Guarantee

A UAE-governed legal agreement combining guarantee and indemnity obligations, ensuring financial security and risk protection under UAE Civil Code requirements.

find out more

Guarantor Lease Agreement

UAE-governed agreement establishing lease terms between landlord and tenant with guarantor security provisions, compliant with UAE Civil Code and local emirate regulations.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.

Read our Privacy Policy.