Subordinated Loan Agreement for United Arab Emirates

Subordinated Loan Agreement Template for United Arab Emirates

A comprehensive template for a Subordinated Loan Agreement governed by United Arab Emirates law, designed to document and regulate the terms of subordinated debt financing. The agreement establishes the subordinated nature of the loan in relation to senior debt, incorporating specific UAE legal requirements and market practices. It includes detailed provisions for interest calculation, repayment terms, events of default, and enforcement mechanisms, all structured to comply with UAE Civil and Commercial Codes. The document addresses both conventional and Islamic finance considerations, making it suitable for use in various financing structures within the UAE market.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Subordinated Loan Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Subordinated Loan Agreement?

This Subordinated Loan Agreement Template is designed for use in the United Arab Emirates, providing a framework for documenting subordinated debt financing arrangements. The template is particularly relevant when companies need to establish a clear hierarchy of debt, with this loan being subordinate to senior obligations. It incorporates all necessary provisions required under UAE law, including compliance with both UAE Civil Code and Commercial Code requirements. The document includes comprehensive sections covering loan terms, subordination mechanisms, interest calculations (with options for both conventional and Islamic structures), security arrangements, and enforcement provisions. This template is specifically tailored for UAE transactions, incorporating local market practices and regulatory requirements while maintaining international standards for subordinated financing. The agreement is structured to be adaptable for various transaction sizes and complexities, making it suitable for both bilateral and syndicated subordinated loan arrangements.

What sections should be included in a Subordinated Loan Agreement?

1. Parties: Identifies the lender, borrower, and any other relevant parties to the agreement

2. Background: Provides context for the subordinated loan and explains the purpose of the subordination

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including specific UAE law concepts

4. The Facility: Details the loan amount, purpose, and drawdown mechanisms

5. Subordination Provisions: Establishes the ranking of the debt and subordination mechanisms

6. Interest and Fees: Specifies interest rates, calculation methods, and payment terms in compliance with UAE laws

7. Repayment Terms: Sets out the repayment schedule and early repayment provisions

8. Conditions Precedent: Lists required documents and conditions before drawdown

9. Representations and Warranties: Standard and UAE-specific representations from the borrower

10. Covenants: Positive and negative undertakings by the borrower

11. Events of Default: Circumstances constituting default and consequences

12. Changes to Parties: Rules for assignment and transfer of rights

13. Administration: Covers notices, calculations, and other administrative matters

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

What sections are optional to include in a Subordinated Loan Agreement?

1. Islamic Finance Provisions: Alternative provisions for Sharia-compliant financing structures, used when the loan needs to comply with Islamic finance principles

2. Security: Provisions relating to any security package, included when the subordinated loan is secured

3. Intercreditor Provisions: Detailed provisions governing relationship between different classes of creditors, used when there are multiple lenders

4. Tax Provisions: Detailed tax-related provisions, included when cross-border elements exist

5. Currency Provisions: Provisions dealing with multiple currencies, included for cross-border transactions

6. Agent Provisions: Provisions regarding the role and responsibilities of any facility agent, used in syndicated loans

What schedules should be included in a Subordinated Loan Agreement?

1. Form of Drawdown Request: Standard form for requesting loan disbursements

2. Conditions Precedent Documents: Detailed list of required documents and conditions

3. Repayment Schedule: Detailed amortization schedule if applicable

4. Form of Transfer Certificate: Standard form for transferring loan participations

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Permitted Security: List of security interests permitted under the agreement

7. Existing Financial Indebtedness: Schedule of borrower's existing debt obligations

8. Form of Subordination Deed: Standard form subordination agreement for additional parties

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

Real Estate & Construction

Infrastructure

Energy & Resources

Manufacturing

Technology

Healthcare

Telecommunications

Retail & Consumer

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Finance

Credit

Company Secretariat

Banking

Investment

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Finance Manager

Investment Manager

Credit Risk Manager

Compliance Officer

Financial Controller

Company Secretary

Relationship Manager

Transaction Manager

Senior Banker

Risk Officer

Legal 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

Find the exact document you need

Salary Loan Agreement

UAE-governed agreement establishing terms for a salary-backed personal loan between a financial institution and employed individual, including salary assignment provisions.

find out more

Project Finance Loan Agreement

A UAE-law governed template for project finance loans, integrating conventional and Islamic finance principles for large-scale projects.

find out more

OverAgreement

UAE-governed agreement establishing terms for bank overdraft facilities, including limits, rates, and security arrangements under UAE banking regulations.

find out more

Non Recourse Loan Agreement

UAE-law non-recourse loan template for secured financing, limiting lender's recourse to designated collateral assets.

find out more

Mezzanine Loan Agreement

A UAE-law mezzanine loan template addressing Sharia compliance, regulatory requirements, and security interests for financing arrangements.

find out more

Loan Participation Agreement

A UAE banking document template for structuring loan participation agreements, compliant with local laws and international standards.

find out more

Loan Note Register

UAE-compliant template for maintaining a structured register of loan notes, ensuring proper documentation and regulatory compliance under UAE federal laws.

find out more

Loan Facility Agreement

A UAE legal document template for establishing credit facilities, incorporating conventional and Islamic financing options.

find out more

Loan Consent Form

A UAE-compliant document capturing formal consent and acknowledgment from parties involved in a lending transaction, adhering to UAE Federal Laws and Banking regulations.

find out more

Litigation Financing Agreement

UAE law-governed agreement establishing terms for third-party funding of litigation, including funding commitments, success fees, and control mechanisms.

find out more

Inter Corporate Loan Agreement

UAE-governed agreement establishing terms for corporate-to-corporate lending, including loan facility, security, and enforcement provisions under UAE law.

find out more

House Loan Contract

UAE-governed agreement between a financial institution and borrower for property financing, detailing loan terms and mortgage security arrangements.

find out more

Hand Loan Agreement

A UAE-compliant agreement documenting a personal loan between parties, outlining loan terms and repayment conditions in accordance with UAE Civil Code and Sharia principles.

find out more

Flexi Finance Loan Agreement

UAE-governed flexible loan facility agreement allowing variable drawdowns subject to a maximum limit, compliant with UAE banking and finance laws.

find out more

Facility Letter Mortgage

A UAE-compliant document combining a credit facility offer with mortgage security arrangements, outlining financing terms and property security details under UAE Federal and Emirates laws.

find out more

Employee Forgivable Loan Agreement

A UAE legal document offering forgivable loans to employees, ensuring retention through compliance with local labor laws and Sharia principles.

find out more

Employee Equipment Loan Agreement

A UAE legal document outlining terms for employee equipment loans, ensuring compliance with labor and property laws.

find out more

Employee Cash Advance Agreement

A UAE legal document outlining salary advance terms, ensuring compliance with labor laws and protecting employer-employee interests.

find out more

Domestic Helper Loan Agreement

A UAE legal document outlining loan terms for domestic helpers, ensuring compliance with employment and financial regulations.

find out more

Device Loan Agreement

A UAE legal document for loaning electronic devices, detailing usage, maintenance, and return conditions.

find out more

Debt To Equity Conversion Agreement

A UAE legal document for converting company debt into equity, ensuring compliance with local laws and regulations.

find out more

Credit Terms Agreement

UAE-compliant credit terms agreement template establishing terms and conditions for credit facilities between financial institutions and borrowers.

find out more

Borrowing Form

A UAE legal template for documenting lending arrangements, accommodating both conventional and Islamic financing principles.

find out more

Assignment Of Loan Agreement

A UAE law-governed agreement transferring rights and obligations under an existing loan from one lender to another, compliant with UAE Civil Code and banking regulations.

find out more

Assignment Of Debt Agreement

A UAE legal document for transferring creditor rights, ensuring compliance with civil and Sharia law principles.

find out more

Agreement Between Two Persons For Money

UAE-governed agreement formalizing monetary arrangements between two individuals, compliant with UAE Civil Code and Sharia principles.

find out more

Title Loan Agreement

A UAE legal document for vehicle-secured loans, ensuring compliance with local laws and Sharia principles.

find out more

Money Lending Form

UAE-compliant lending agreement template suitable for both conventional and Islamic financing arrangements, incorporating local regulatory requirements and banking practices.

find out more

Subordinated Loan Agreement

UAE law-governed template for subordinated loan arrangements, establishing terms and conditions for subordinated debt financing in compliance with UAE regulations.

find out more

Forgivable Loan Agreement

A UAE legal template for forgivable loans, detailing terms, forgiveness conditions, and compliance with local laws.

find out more

Loan Agreement With Guarantor

A UAE legal template for secured loans with guarantor, ensuring compliance with local lending and guarantee laws.

find out more

Payday Loan Contract

A UAE-law governed payday loan contract template for short-term loans, incorporating regulatory and consumer protection provisions.

find out more

Simple Loan Application Form

A UAE banking sector template for standardized loan applications, integrating conventional and Islamic financing options.

find out more

Loan Guarantor Agreement

A UAE legal document for third-party loan guarantee, ensuring compliance with local banking and Sharia regulations.

find out more

Employee Laptop Agreement

UAE-governed agreement establishing terms for company laptop provision to employees, including usage policies and security requirements.

find out more

Debt Purchase Agreement

A UAE legal template for debt purchase agreements, ensuring compliance with federal laws and Islamic finance principles.

find out more

Personal Loan Receipt

A UAE banking document detailing personal loan terms, ensuring compliance with local regulations and consumer protection laws.

find out more

Simple Convertible Loan Agreement

UAE law-governed convertible loan agreement template for company financing with loan-to-equity conversion options.

find out more

Work Loan Agreement

A UAE-governed agreement establishing terms for an employer-provided loan to an employee, including repayment terms and obligations under UAE Federal Laws.

find out more

Board Resolution To Borrow

A UAE legal document authorizing corporate borrowing, detailing board approval, loan terms, and designated signatories.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now