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Pledge Agreement
"Need a UAE Pledge Agreement to secure a AED 50 million corporate loan facility by pledging 100% shares in our Dubai subsidiary company, with the facility expected to close by March 2025."
1. Parties: Identification of the Pledgor and Pledgee, including full legal names and addresses
2. Background: Context of the pledge, reference to any underlying facility or main agreement, and purpose of the pledge
3. Definitions and Interpretation: Key terms used in the agreement, including 'Pledged Assets', 'Secured Obligations', and interpretation rules
4. Creation and Perfection of Pledge: Express creation of the pledge, steps for perfection, including registration requirements under UAE law
5. Scope of Security: Detailed description of the pledged assets and secured obligations
6. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and status of pledged assets
7. Covenants: Pledgor's ongoing obligations regarding the pledged assets and maintenance of the pledge
8. Rights and Obligations of the Pledgee: Pledgee's powers and responsibilities in relation to the pledged assets
9. Events of Default: Circumstances constituting default and triggering enforcement rights
10. Enforcement: Enforcement mechanisms and procedures compliant with UAE law
11. Costs and Expenses: Allocation of costs related to the pledge creation, maintenance, and enforcement
12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction of UAE courts
1. Power of Attorney: Required when the pledge arrangement includes an irrevocable power of attorney for enforcement purposes
2. Further Assurance: Include when additional documentation or actions may be needed for perfection or enforcement
3. Assignment and Transfer: Include when rights under the pledge agreement may need to be transferred
4. Notices: Include detailed notice provisions when ongoing communications between parties are expected
5. Multiple Pledgors: Include when there are multiple parties providing security
6. Currency Provisions: Required when the secured obligations are in a different currency from the pledged assets
7. Electronic Execution: Include provisions for electronic execution if contemplated by the parties
1. Schedule 1 - Description of Pledged Assets: Detailed description and/or list of all assets subject to the pledge
2. Schedule 2 - Form of Registration Notice: Template for security interest registration under UAE Federal Law No. 4 of 2020
3. Schedule 3 - Secured Obligations: Detailed description of the obligations secured by the pledge
4. Schedule 4 - Perfection Requirements: Checklist of actions required to perfect the pledge under UAE law
5. Schedule 5 - Form of Power of Attorney: Template for power of attorney if required
6. Schedule 6 - Existing Encumbrances: List of any existing security interests or encumbrances over the pledged assets
7. Schedule 7 - Form of Notice to Third Parties: Template notices to relevant third parties (e.g., account banks, custodians)
Authors
Banking
Financial Services
Real Estate
Manufacturing
Trading
Investment
Infrastructure
Energy
Technology
Healthcare
Retail
Construction
Telecommunications
Aviation
Legal
Finance
Compliance
Risk Management
Treasury
Corporate Secretarial
Credit
Corporate Finance
Operations
Transaction Management
Legal Counsel
Finance Manager
Chief Financial Officer
Compliance Officer
Risk Manager
Corporate Secretary
Treasury Manager
Credit Manager
Security Trustee
Relationship Manager
Transaction Manager
General Counsel
Senior Legal Advisor
Finance Director
Corporate Finance Manager
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