Authorization Letter For Co Borrower for United Arab Emirates

Authorization Letter For Co Borrower Template for United Arab Emirates

An Authorization Letter for Co-Borrower is a formal document used in the United Arab Emirates banking system that establishes and confirms the relationship between a primary borrower and a co-borrower in relation to a loan or credit facility. The document, governed by UAE Federal Laws including the Civil Code and Banking regulations, authorizes the co-borrower to undertake specific responsibilities and actions related to the loan while establishing joint liability. It serves as a crucial document for banks and financial institutions in the UAE to process joint lending arrangements and ensures compliance with local banking regulations regarding multiple borrowers.

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What is a Authorization Letter For Co Borrower?

The Authorization Letter For Co-Borrower is a critical document in UAE banking operations, particularly when multiple parties are involved in a loan arrangement. This document becomes necessary when an additional borrower needs to be added to a loan application or existing loan facility, providing them with specific authorities while establishing their obligations. The letter, which must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 18 of 1993 (Commercial Transactions Law), typically includes detailed identification of all parties, specific authorities granted, acknowledgment of joint liability, and the scope of the co-borrower's powers. Financial institutions in the UAE require this document to process joint lending arrangements and ensure proper risk assessment and compliance with local banking regulations. The document is particularly relevant in mortgage lending, business loans, and personal finance where multiple borrowers are involved.

What sections should be included in a Authorization Letter For Co Borrower?

1. Date and Place: Current date and place of execution of the letter

2. Addressee Details: Name and address of the bank/financial institution to whom the letter is addressed

3. Subject Line: Clear indication that this is an Authorization Letter for Co-Borrower

4. Primary Borrower Information: Full legal name, Emirates ID number, and contact details of the primary borrower

5. Co-Borrower Information: Full legal name, Emirates ID number, and contact details of the co-borrower

6. Loan Reference: Details of the loan application or existing loan number if applicable

7. Authorization Statement: Clear statement of authorization granted to the co-borrower

8. Scope of Authority: Specific powers and limitations of the co-borrower's authority

9. Joint Liability Declaration: Statement acknowledging joint liability for the loan

10. Duration of Authorization: Validity period of the authorization

11. Signatures: Space for signatures of both primary borrower and co-borrower

What sections are optional to include in a Authorization Letter For Co Borrower?

1. Specific Transaction Powers: Detailed list of specific transactions the co-borrower is authorized to perform, used when authorization is limited to certain actions

2. Revocation Clause: Terms for revoking the authorization, included when the authorization is not intended to be irrevocable

3. Witness Section: Space for witness details and signatures, used when additional verification is required by the bank

4. Arabic Translation: Parallel Arabic text, required when the letter needs to be bilingual

5. Power of Attorney Reference: Reference to any existing Power of Attorney, included when the authorization is supported by a separate PoA

What schedules should be included in a Authorization Letter For Co Borrower?

1. Identity Documents: Copies of Emirates ID cards and passports of both primary borrower and co-borrower

2. Loan Application Details: Copy of the loan application or existing loan agreement referenced in the authorization

3. Specimen Signatures: Official specimen signatures of both parties as registered with the bank

4. Supporting Power of Attorney: Copy of any existing Power of Attorney document if referenced in the letter

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant Industries

Banking

Financial Services

Real Estate

Mortgage Services

Consumer Finance

Corporate Lending

Islamic Banking

Legal Services

Property Development

Business Finance

Relevant Teams

Legal

Credit Operations

Retail Banking

Corporate Banking

Risk Management

Compliance

Document Processing

Customer Service

Loan Administration

Credit Assessment

Relevant Roles

Loan Officer

Credit Manager

Relationship Manager

Legal Compliance Officer

Banking Operations Manager

Credit Risk Analyst

Mortgage Advisor

Legal Document Specialist

Branch Manager

Customer Service Representative

Retail Banking Officer

Corporate Banking Manager

Document Control Officer

Credit Administration Officer

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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