Loan Extension Agreement for Qatar

Loan Extension Agreement Template for Qatar

A Loan Extension Agreement under Qatar law is a formal legal document that modifies an existing loan agreement by extending its maturity date and potentially adjusting other terms. The agreement must comply with Qatar's Civil Code (Law No. 22 of 2004) and, where applicable, Islamic finance principles. It documents the parties' agreement to extend the loan period, confirms continuing security arrangements, and may include updated financial covenants or conditions. The document must be structured to meet Qatar Central Bank requirements and consider both civil law and Sharia compliance aspects, particularly regarding interest provisions and financial obligations.

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What is a Loan Extension Agreement?

The Loan Extension Agreement is utilized when parties to an existing loan facility wish to extend its term beyond the original maturity date. This document is particularly relevant in Qatar's dynamic financial market, where both conventional and Islamic banking practices coexist. It should be used when the original loan remains in good standing but additional time is needed for repayment. The agreement typically includes confirmation of the extended term, any modified conditions, continuing security arrangements, and updated representations. Under Qatar law, special attention must be paid to compliance with both the Civil Code and, where applicable, Islamic finance principles. The document must also address Qatar Central Bank requirements and local banking regulations. It's commonly used in project financing, real estate development, and corporate lending scenarios where additional time is needed to complete projects or meet business objectives.

What sections should be included in a Loan Extension Agreement?

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

2. Background: Recitals detailing the original loan agreement, its key terms, current status, and reason for extension

3. Definitions: Definitions of key terms, including reference to original loan agreement definitions

4. Extension of Loan: Clear statement of the extension period and new maturity date

5. Continuation of Terms: Confirmation that all other terms of the original loan agreement remain in force

6. Conditions Precedent: Conditions that must be satisfied before the extension becomes effective

7. Representations and Warranties: Updated representations and warranties from the Borrower

8. Fees and Costs: Any fees or costs associated with the extension

9. Governing Law and Jurisdiction: Confirmation of Qatar law as governing law and jurisdiction for disputes

10. Execution: Signature blocks and execution requirements

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

1. Additional Security: Required if new security is being provided for the extended loan period

2. Revised Payment Schedule: Include if payment terms are being modified as part of the extension

3. Shariah Compliance: Required for Islamic banking facilities to confirm compliance with Shariah principles

4. Corporate Authorizations: Required when either party is a corporate entity, confirming authority to enter into the extension

5. Event of Default Updates: Include if any events of default are being modified or added

6. Financial Covenants: Include if financial covenants are being updated or modified

What schedules should be included in a Loan Extension Agreement?

1. Original Loan Agreement: Copy of the original loan agreement being extended

2. Updated Repayment Schedule: Detailed schedule of repayment dates and amounts under the extension

3. Corporate Authorizations: Copies of relevant board resolutions, powers of attorney or other authorization documents

4. Security Documents: List and copies of continuing security documents and any new security

5. Conditions Precedent Documents: Checklist and copies of all conditions precedent documents

6. Fees Schedule: Detailed breakdown of any fees payable in connection with the extension

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

Jurisdiction

Qatar

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate and Construction

Energy and Natural Resources

Manufacturing and Industrial

Retail and Commercial

Healthcare

Education

Hospitality and Tourism

Technology and Communications

Infrastructure and Transport

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Banking

Islamic Banking

Project Finance

Documentation

Corporate Advisory

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Risk Manager

Credit Manager

Banking Relationship Manager

Corporate Finance Manager

Financial Controller

Loan Officer

Islamic Finance Specialist

Senior Legal Manager

Corporate Banking Manager

Project 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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