The Bank Guarantee Against Property is a crucial financial security instrument in the United Arab Emirates, commonly used in commercial and development transactions where substantial financial assurance is required. This document is typically employed when a party needs to provide a bank guarantee but wishes to use real property as security instead of cash collateral. The guarantee structure must comply with UAE Federal Laws, including UAE Civil Code provisions on guarantees and securities, UAE Central Bank regulations, and local property laws. The document includes detailed provisions for property valuation, registration of security interests, enforcement mechanisms, and the specific rights and obligations of the guarantor bank, property owner, and beneficiary. It's particularly relevant in construction projects, commercial developments, and large-scale commercial transactions where significant financial guarantees are required.

1. Parties: Identifies the Bank (Guarantor), Property Owner (Security Provider), and Beneficiary, including full legal names and addresses

2. Background: Explains the context of the guarantee, the underlying obligation being guaranteed, and the property being offered as security

3. Definitions: Defines key terms used throughout the agreement, including technical banking terms and property-related definitions

4. Guarantee Provisions: Details the scope, amount, and duration of the bank guarantee, including conditions for calling upon the guarantee

5. Property Security: Describes the property being offered as security and the nature of the security interest being created

6. Representations and Warranties: Statements by the Property Owner regarding ownership, authority to grant security, and property condition

7. Registration and Perfection: Requirements for registering the security interest with relevant authorities

8. Covenants: Ongoing obligations of the Property Owner regarding maintenance, insurance, and use of the property

9. Events of Default: Circumstances that constitute default and trigger enforcement rights

10. Enforcement Rights: Bank's rights and procedures for enforcing against the property upon default

11. Costs and Expenses: Allocation of costs related to the guarantee, registration, and enforcement

12. Notices: Process for giving formal notices under the guarantee

13. Governing Law and Jurisdiction: Confirms UAE law as governing law and specifies jurisdiction for disputes