Flexi Finance Loan Agreement for United Arab Emirates

Flexi Finance Loan Agreement Template for United Arab Emirates

A comprehensive financing agreement governed by UAE law that provides flexible borrowing arrangements, allowing the borrower to draw down funds up to a predetermined limit as needed. The agreement incorporates UAE Central Bank regulations, local banking practices, and commercial laws, while potentially accommodating both conventional and Islamic finance principles. It includes detailed provisions for drawdown mechanics, interest calculations, repayment terms, and security arrangements, all structured to comply with UAE legal requirements and banking regulations.

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What is a Flexi Finance Loan Agreement?

The Flexi Finance Loan Agreement is designed for use in the United Arab Emirates when establishing a flexible financing facility between a financial institution and a borrower. This document is particularly relevant when the borrower requires a revolving credit facility with the ability to draw down funds multiple times up to an agreed limit, rather than a single fixed loan amount. The agreement must comply with UAE Federal Law No. 14 of 2018 (Central Bank Law), UAE Federal Law No. 5 of 1985 (Civil Code), and relevant Central Bank regulations. It includes comprehensive provisions for facility limits, drawdown mechanisms, interest calculations, security requirements, and repayment terms, while accommodating both conventional and potential Islamic finance structures. The document is structured to provide flexibility while maintaining robust protection for all parties involved.

What sections should be included in a Flexi Finance Loan Agreement?

1. Parties: Identification of the Lender and Borrower with full legal names and details

2. Background: Context of the loan facility and relationship between parties

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Facility: Details of the loan facility, including amount, purpose, and flexible drawing mechanisms

5. Conditions Precedent: Conditions that must be satisfied before the facility becomes available

6. Drawdown Mechanics: Procedures and requirements for drawing down the loan facility

7. Interest and Fees: Interest calculation method, rates, fees, and payment terms

8. Repayment Terms: Repayment schedule, methods, and prepayment provisions

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Security: Details of any security or guarantees provided for the loan

13. General Provisions: Standard contractual terms including notices, amendments, and governing law

What sections are optional to include in a Flexi Finance Loan Agreement?

1. Islamic Finance Provisions: Required if the facility needs to be Sharia-compliant, including specific terminology and structures

2. Currency Provisions: Required for facilities available in multiple currencies

3. Co-Borrower Provisions: Required when there are multiple borrowers

4. Guarantee Provisions: Required when third-party guarantees are part of the security structure

5. Insurance Requirements: Detailed insurance obligations if specific insurance coverage is required

6. Special Drawing Conditions: For facilities with specific drawing restrictions or conditions

7. Cross-Default Provisions: When the facility is part of a larger financing structure

What schedules should be included in a Flexi Finance Loan Agreement?

1. Facility Terms Schedule: Detailed commercial terms including amounts, rates, and fees

2. Drawing Notice Form: Template form for requesting drawdowns

3. Conditions Precedent Documents: List of required documents and conditions

4. Repayment Schedule: Detailed breakdown of repayment dates and amounts

5. Security Documents: Forms of security documents and guarantees

6. Fees Schedule: Detailed breakdown of all applicable fees

7. Permitted Security List: List of security interests permitted under the facility

8. Contact Details: Contact information for notices and communications

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
Clauses
Relevant Industries

Banking

Financial Services

Real Estate

Construction

Trading

Manufacturing

Retail

Healthcare

Technology

Hospitality

Education

Professional Services

Transportation

Logistics

Energy

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Banking

Islamic Banking

Operations

Commercial Banking

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Banking Relationship Manager

Corporate Finance Manager

Managing Director

CEO

Business Development Manager

Account Manager

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

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