Loan Consent Form for United Arab Emirates

Loan Consent Form Template for United Arab Emirates

A UAE Loan Consent Form is a formal document used in lending transactions within the United Arab Emirates that captures explicit consent and acknowledgment from relevant parties involved in a loan arrangement. The document complies with UAE Federal Laws, including the UAE Civil Code and Banking regulations, while potentially incorporating Sharia principles where applicable. It serves as a critical supporting document to the main loan agreement, containing declarations, acknowledgments, and warranties from consenting parties, thereby providing legal protection and clarity for all stakeholders involved in the lending transaction.

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What is a Loan Consent Form?

The Loan Consent Form is a crucial document in UAE lending transactions, required when obtaining formal acknowledgment and agreement from parties involved in or affected by a loan arrangement. This document is particularly important in the UAE context where both civil law and Sharia principles may influence lending practices. The form is used across various scenarios including personal loans, corporate borrowing, and Islamic banking facilities. It typically accompanies the main loan agreement and includes specific consents, acknowledgments, and representations required under UAE law. The Loan Consent Form should be drafted in compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 14 of 2018 (Central Bank Law), while also considering relevant Central Bank circulars and regulations. It becomes especially critical in situations involving matrimonial property, corporate borrowing, or when third-party rights are affected by the loan arrangement.

What sections should be included in a Loan Consent Form?

1. Parties: Identification of all relevant parties including the borrower, lender, and any guarantors or third parties providing consent

2. Background: Context of the loan arrangement and purpose of the consent form

3. Definitions: Key terms used throughout the document, including reference to the main loan agreement terms

4. Consent Declarations: Express statements of consent from the relevant party regarding the loan arrangement

5. Acknowledgments: Confirmation that the consenting party understands the implications of the loan and their obligations

6. Representations and Warranties: Statements confirming the consenting party's capacity and authority to provide the consent

7. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

8. Execution: Signature blocks for all parties, including spaces for witnesses as required under UAE law

What sections are optional to include in a Loan Consent Form?

1. Spousal Consent: Required when the loan involves matrimonial property or requires spouse's consent under UAE law

2. Corporate Authorization: Required when the consenting party is a corporate entity, including necessary board resolutions

3. Sharia Compliance Declaration: Required for Islamic banking facilities or when specifically requested by the parties

4. Translation Clause: Required when the document is executed in dual language format

5. Security Acknowledgment: Required when the loan involves collateral or security arrangements

6. Third Party Rights: Required when the consent affects the rights of third parties not directly party to the loan

7. Power of Attorney: Required when the consent includes authorization for the lender to act on behalf of the consenting party

What schedules should be included in a Loan Consent Form?

1. Schedule 1 - Loan Details: Summary of the main loan terms and conditions being consented to

2. Schedule 2 - Related Security Documents: List of security documents related to the loan requiring consent

3. Appendix A - Required Documents: List of supporting documents to be provided with the consent form

4. Appendix B - Form of Notice: Standard format for any notices required under the consent arrangement

5. Appendix C - Corporate Authorization Documents: Templates or copies of corporate resolutions or authorizations when applicable

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 Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Retail

Healthcare

Education

Technology

Transportation

Energy

Hospitality

Trading

Professional Services

Relevant Teams

Legal

Compliance

Credit

Risk Management

Finance

Treasury

Banking Operations

Document Management

Corporate Secretarial

Loan Administration

Relevant Roles

Legal Counsel

Compliance Officer

Loan Officer

Credit Manager

Banking Relationship Manager

Corporate Secretary

Risk Manager

Financial Controller

Chief Financial Officer

Treasury Manager

Legal Director

Compliance Manager

Banking Operations Manager

Credit Risk Officer

Document Control Specialist

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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