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Pledge Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

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."

Document background
The Pledge Agreement is a fundamental security document used in the United Arab Emirates to create security interests over various types of assets. It is commonly used in financing transactions, asset securitization, and other commercial arrangements where security is required. The agreement must comply with UAE Federal Law No. 4 of 2020 on Securing Interest in Movable Property, the UAE Civil Code, and other relevant legislation. This document type is essential when a party (Pledgor) needs to provide security over assets to secure obligations owed to another party (Pledgee), typically in the context of financing arrangements or other commercial transactions. The Pledge Agreement includes detailed provisions on the pledged assets, perfection requirements, maintenance obligations, and enforcement mechanisms, all specifically tailored to meet UAE legal requirements and market practice.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 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

Real Estate

Manufacturing

Trading

Investment

Infrastructure

Energy

Technology

Healthcare

Retail

Construction

Telecommunications

Aviation

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Secretarial

Credit

Corporate Finance

Operations

Transaction Management

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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