Debt Purchase Agreement for United Arab Emirates

Debt Purchase Agreement Template for United Arab Emirates

A comprehensive template agreement governed by UAE law for the purchase and sale of debt obligations, incorporating both conventional and Islamic finance principles where applicable. This document facilitates the transfer of debt from a seller to a purchaser, including all associated rights, security interests, and obligations. The agreement complies with UAE Federal Laws and Central Bank regulations, addressing key aspects such as transfer mechanics, warranties, representations, and completion requirements. It includes provisions for both corporate and consumer debt purchases, with specific considerations for UAE regulatory requirements and local market practices.

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What is a Debt Purchase Agreement?

The Debt Purchase Agreement Template is designed for use in the United Arab Emirates market to facilitate the sale and purchase of debt obligations between parties. It serves as a comprehensive framework for debt trading transactions, whether involving corporate loans, consumer debt, or Islamic finance facilities. The template incorporates requirements under UAE Federal Laws, Central Bank regulations, and where applicable, Islamic finance principles. It is particularly useful for financial institutions, investment companies, and debt purchasing entities operating in the UAE, providing a structured approach to debt transfers while ensuring regulatory compliance. The document includes essential provisions for transfer mechanics, warranties, representations, and completion requirements, along with optional modules for specific transaction types such as Sharia-compliant deals or consumer debt purchases.

What sections should be included in a Debt Purchase Agreement?

1. Parties: Identification of the Seller and Purchaser with full legal names and addresses

2. Background: Context of the transaction, description of the debt(s) being sold, and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Sale and Purchase: Core transaction terms including the debt being sold and purchase price

5. Conditions Precedent: Conditions that must be satisfied before completion of the sale

6. Completion: Mechanics and timing of the completion process, including deliverables

7. Representations and Warranties: Seller's and Purchaser's representations regarding their capacity and the debt

8. Assignment and Transfer: Mechanics of legally transferring the debt from Seller to Purchaser

9. Payment Terms: Details of purchase price, payment method, and timing

10. Seller's Undertakings: Ongoing obligations of the Seller post-completion

11. Confidentiality: Obligations regarding transaction confidentiality and data protection

12. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

13. Notices: Process for formal communications between parties

14. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability

What sections are optional to include in a Debt Purchase Agreement?

1. Sharia Compliance: Required when the transaction needs to comply with Islamic finance principles

2. Security Assignment: Used when associated security interests are being transferred with the debt

3. Debt Servicing: Required when arrangements for ongoing debt collection and servicing are included

4. Buy-Back Provisions: Optional provisions for circumstances where Seller must repurchase the debt

5. Data Protection: Extended provisions required when dealing with personal data in consumer debts

6. Anti-Money Laundering: Additional provisions required for high-value transactions or regulated entities

7. Further Assurance: Optional provisions for additional documentation or actions post-completion

What schedules should be included in a Debt Purchase Agreement?

1. Schedule 1 - Debt Schedule: Detailed list and description of the debt(s) being purchased

2. Schedule 2 - Completion Requirements: List of documents and actions required at completion

3. Schedule 3 - Form of Transfer Documents: Templates for assignment notices and transfer documentation

4. Schedule 4 - Seller's Warranties: Detailed warranties regarding the debt and related matters

5. Schedule 5 - Power of Attorney: Form of power of attorney for debt transfer if required

6. Appendix A - Existing Security Documents: Copies or details of existing security documentation

7. Appendix B - Debtor Information: Details of debtors and payment history (subject to confidentiality)

8. Appendix C - Calculation of Purchase Price: Methodology and calculations for the purchase price

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking

Financial Services

Investment Management

Debt Collection

Asset Management

Private Equity

Islamic Finance

Real Estate

Commercial Lending

Consumer Finance

Healthcare Finance

Infrastructure Finance

Trade Finance

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Islamic Banking

Credit Risk

Portfolio Management

Debt Collection

Investment

Corporate Finance

Transaction Management

Relevant Roles

Chief Financial Officer

Legal Counsel

Investment Manager

Debt Portfolio Manager

Credit Risk Manager

Compliance Officer

Islamic Finance Specialist

Treasury Manager

Portfolio Analyst

Debt Collection Manager

Finance Director

Transaction Manager

Senior Corporate Lawyer

Risk Officer

Commercial Director

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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