This Facility Agreement Template is designed for use in the United Arab Emirates, providing a standardized framework for documenting financial facilities while ensuring compliance with UAE laws and regulations. The template is suitable for various types of facilities including term loans, revolving facilities, and multipurpose facilities, and can be adapted for both conventional and Islamic financing structures. It incorporates all essential provisions required under UAE law, including Central Bank requirements and local market practice, while maintaining international banking standards. The document addresses key areas such as facility terms, security requirements, conditions precedent, representations and warranties, covenants, and events of default, all specifically tailored to the UAE legal environment. This template serves as a starting point for financial institutions and corporate entities engaging in lending transactions within the UAE jurisdiction.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Parties: Identification of the lender(s), borrower(s), and any guarantors or security providers
2. Background: Context of the facility and brief description of the transaction
3. Definitions and Interpretation: Comprehensive definitions of terms used and interpretation rules
4. The Facility: Details of the facility amount, purpose, and availability
5. Conditions Precedent: Conditions to be satisfied before drawdown
6. Utilisation: Process and requirements for drawing down the facility
7. Repayment and Prepayment: Terms for scheduled repayments and voluntary/mandatory prepayments
8. Interest: Interest calculation, periods, and payment provisions
9. Fees: All applicable fees including arrangement, commitment, and other fees
10. Tax Provisions: Tax gross-up, indemnities, and VAT treatment
11. Increased Costs and Illegality: Provisions for dealing with changes affecting the lender's cost of funding
12. Representations and Warranties: Borrower's confirmations regarding its status and capacity
13. Information Undertakings: Obligations to provide financial and other information
14. General Undertakings: Positive and negative covenants of the borrower
15. Financial Covenants: Financial ratios and other numerical obligations
16. Events of Default: Circumstances allowing the lender to cancel the facility and demand repayment
17. Changes to Parties: Transfer and assignment provisions
18. Administration: Payment mechanics, calculations, and notices
19. Governing Law and Enforcement: Choice of UAE law and jurisdiction provisions
1. Security: Required if the facility is secured - details of security package and enforcement
2. Guarantee: Required if there are guarantors - terms of guarantee and indemnity
3. Sharia Compliance: Required for Islamic facilities - provisions ensuring Sharia compliance
4. Syndication Provisions: Required for syndicated facilities - provisions governing lender relationships
5. Multiple Currencies: Required for multi-currency facilities - currency conversion and availability
6. Accordion Feature: Optional provision allowing increase in facility amount
7. Letter of Credit Facility: Required if facility includes issuance of LCs
8. Agency Provisions: Required for syndicated facilities - facility agent's role and responsibilities
1. Schedule 1 - Conditions Precedent: Detailed list of required CP documents
2. Schedule 2 - Utilisation Request: Form of drawdown notice
3. Schedule 3 - Repayment Schedule: If term facility, schedule of repayment dates and amounts
4. Schedule 4 - Form of Transfer Certificate: Template for transferring commitments between lenders
5. Schedule 5 - Form of Compliance Certificate: Template for financial covenant compliance reporting
6. Schedule 6 - Existing Security: List of permitted existing security (if applicable)
7. Schedule 7 - Form of Accession Deed: Template for additional borrowers/guarantors joining
8. Schedule 8 - Form of Resignation Letter: Template for resignation of borrowers/guarantors
9. Schedule 9 - Form of Commitment Increase Notice: Template for accordion feature implementation
10. Schedule 10 - Timetables: Operational deadlines for various actions under the facility
Is a Facility Agreement legally binding under UAE law?
Yes, a properly executed Facility Agreement is legally binding in the UAE under Federal Law No. 18 of 2017 (Commercial Transactions Law) and Federal Law No. 5 of 1985 (Civil Transactions Law). The agreement must meet UAE contract formation requirements including offer, acceptance, consideration, and compliance with Sharia principles to be enforceable in UAE courts.
Do I need a lawyer to draft a Facility Agreement in the UAE?
While not legally mandatory, it's highly recommended to engage a UAE-qualified lawyer for commercial facility agreements. UAE banking laws are complex, and legal counsel ensures compliance with Central Bank regulations, proper Arabic translation requirements, and adherence to Islamic finance principles where applicable.
Can UAE courts enforce an incomplete Facility Agreement?
UAE courts may struggle to enforce incomplete facility agreements, particularly if essential terms like facility amount, repayment terms, or security provisions are missing. Under UAE Commercial Transactions Law, agreements lacking material terms may be deemed void or unenforceable, potentially exposing both lender and borrower to significant legal risks.
Authors
Find the document you need
Vendor Finance Loan Agreement
An Australian-law governed template agreement for vendor financing arrangements, incorporating security interests and compliance with local credit legislation.
Download
Private Lender Contract
An Australian-law governed agreement establishing terms and conditions for private lending arrangements, including loan details, security, and compliance with national lending regulations.
Download
OverLoan Agreement
An Australian-law governed agreement establishing an overdraft facility between a financial institution and borrower, detailing credit limits, terms, and obligations under Australian banking regulations.
Download
Fixed Sum Loan Agreement Early Settlement
An Australian-compliant loan agreement template for fixed sum loans with early settlement provisions, meeting National Consumer Credit Protection Act requirements.
Download
Facility Agreement Loan
An Australian law-governed agreement setting out terms and conditions for the provision of loan facilities between lenders and borrowers, including key financial and operational terms.
Download
Employee Loan Agreement Interest
An Australian-compliant interest-free loan agreement between employer and employee, including repayment terms and FBT considerations.
Download
Employee Computer Loan Agreement
An Australian law agreement governing the loan of computer equipment from employer to employee, establishing terms, conditions, and mutual obligations.
Download
Contract To Take Over Car Payments
An Australian legal agreement for transferring car payment obligations from one borrower to another, compliant with national consumer credit laws.
Download
Auto Loan Promissory Note
An Australian-compliant template for vehicle loan agreements that establishes loan terms, security interests, and obligations under national consumer credit laws.
Download
Acknowledgement Of Debt Agreement
An Australian-compliant legal document where a debtor formally acknowledges their debt and agrees to specific repayment terms under Australian law.
Download
Personal Loan To Business Agreement
An Australian-law governed agreement between an individual lender and a business borrower, establishing terms and conditions for a business loan.
Download
Loan Agreement Between Family Members
An Australian-compliant legal agreement that formalizes and documents loan arrangements between family members, including terms, conditions, and repayment schedules.
Download
Standard Mortgage Agreement
An Australian-law governed agreement establishing the terms and security arrangements for a mortgage loan secured against real property.
Download
Director Loan To Company Agreement
An Australian law-governed agreement documenting the terms and conditions of a loan provided by a director to their company, ensuring regulatory compliance and protecting both parties' interests.
Download
Simple Promissory Note For Family Loan
An Australian legal document that formalizes and documents the terms of a monetary loan between family members, providing legal protection while maintaining familial considerations.
Download
Simple Intercompany Loan Agreement
An Australian law template for documenting loan arrangements between related companies within the same corporate group.
Download
Loan Agreement Between Companies
Australian corporate loan agreement template for inter-company lending, compliant with Australian corporate and financial services laws.
Download
Loan Agreement Between Two Individuals
An Australian-compliant loan agreement template for personal lending between individuals, establishing terms, conditions, and obligations for both parties.
Download
Home Equity Loan Agreement
Australian-compliant Home Equity Loan Agreement Template establishing terms for property equity-secured lending, including mandatory consumer protection provisions.
Download
Demand Loan
Australian-compliant demand loan agreement template allowing lenders to call for repayment at any time, suitable for both consumer and business lending.
Download
Construction Loan Contract
An Australian legal agreement for progressive funding of construction projects, governing both financial and construction aspects under Australian federal and state laws.
Download
Commercial Real Estate Loan Term Sheet
Australian-compliant template outlining key terms and conditions for commercial real estate loan facilities.
Download
Balloon Loan Agreement
An Australian-compliant loan agreement template featuring regular payments and a final balloon payment, structured according to Australian financial and consumer protection laws.
Download
Employer Paid Training Agreement
An Australian legal agreement establishing terms for employer-funded professional training, including financial commitments and employee obligations.
Download
Debt Payment Agreement
An Australian-compliant template for structuring and documenting debt repayment arrangements between creditors and debtors, incorporating all essential legal and practical provisions.
Download
Inter Lender Agreement
An Australian law-governed agreement establishing rights, priorities, and relationships between multiple lenders in a financing arrangement.
Download
Hand Loan Agreement
An Australian-compliant agreement documenting the terms and conditions of a personal or small business loan between parties, including loan amount, interest, and repayment terms.
Download
Flexi Finance Loan Agreement
An Australian-compliant flexible finance agreement establishing a revolving credit facility with variable drawdown and repayment terms.
Download
Employee Forgivable Loan Agreement
Download
Employee Equipment Loan Agreement
Download
Employee Cash Advance Agreement
Download
Subordinated Loan Agreement
Australian law template for subordinated loan arrangements, establishing terms for junior-ranking debt with comprehensive creditor provisions.
Download
Forgivable Loan Agreement
Download
Device Loan Agreement
Download
Debt To Equity Conversion Agreement
Download
Credit Terms Agreement
An Australian-compliant template for establishing credit arrangements between providers and customers, incorporating all necessary legal and regulatory requirements.
Download
Borrowing Form
Download
Assignment Of Loan Agreement
Australian-compliant template for transferring loan rights and obligations from one lender to another, suitable for various types of loan assignments under Australian law.
Download
Assignment Of Debt Agreement
Download
Agreement Between Two Persons For Money
An Australian law-governed agreement formalizing financial arrangements between two individuals, including payment terms and obligations.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is 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
