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Agreement For Security Cheque
"I need an Agreement For Security Cheque to be drafted for my real estate company as the beneficiary, covering ten post-dated security cheques totaling AED 5 million from a commercial tenant as rental guarantee for a 5-year lease starting March 2025."
1. Parties: Identification of the parties including full legal names, addresses, and registration details
2. Background: Context of the agreement, including reference to the underlying obligation and purpose of the security cheque
3. Definitions: Key terms used in the agreement including 'Security Cheque', 'Underlying Obligation', 'Event of Default'
4. Security Cheque Details: Specific details of the security cheque(s) including amount, date, and bank details
5. Terms and Conditions: Conditions for holding and presenting the cheque, including trigger events
6. Representations and Warranties: Declarations by the cheque issuer regarding authority, sufficient funds, and valid bank account
7. Covenants: Ongoing obligations including maintaining sufficient funds and notification requirements
8. Events of Default: Circumstances under which the security cheque may be presented for payment
9. Rights and Remedies: Legal rights and remedies available to the beneficiary upon default
10. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction of UAE courts
1. Multiple Cheques Provision: Required when multiple security cheques are being provided, detailing the handling and presentation sequence
2. Replacement Cheques: Provisions for replacing cheques in case of expiry or bank account changes
3. Power of Attorney: Optional authorization for the beneficiary to take specific actions regarding the cheque
4. Confidentiality: Required when parties wish to keep the arrangement confidential
5. Insurance: Required when additional insurance coverage is needed for the underlying obligation
6. Assignment: Required when rights under the agreement may need to be assigned to third parties
1. Schedule 1 - Cheque Details: Detailed information about each security cheque including cheque numbers, amounts, and dates
2. Schedule 2 - Underlying Obligation: Details of the primary agreement or obligation for which the security cheque is provided
3. Schedule 3 - Authorized Signatories: List of authorized persons who can act on behalf of each party
4. Appendix A - Form of Notice: Template for notices required under the agreement
5. Appendix B - Specimen Signatures: Specimen signatures of authorized signatories for verification purposes
Authors
Underlying Obligation
Event of Default
Business Day
Beneficiary
Provider
Effective Date
Presentation Date
Bank Account
Notice
UAE Dirham
Authorized Signatory
Governing Law
Interest Rate
Default Interest
Secured Obligations
Banking Hours
Drawee Bank
Force Majeure
Confidential Information
Affiliate
Material Adverse Effect
Security Interest
Encumbrance
Replacement Cheque
Specimen Signature
Working Day
Principal Amount
Dispute
Guarantee
Liability
Recitals
Definitions
Security Cheque Issuance
Underlying Obligations
Representations and Warranties
Covenants
Default Events
Enforcement Rights
Remedies
Replacement Procedures
Bank Account Maintenance
Notice Requirements
Assignment
Confidentiality
Force Majeure
Governing Law
Jurisdiction
Dispute Resolution
Severability
Entire Agreement
Amendment
Counterparts
Costs and Expenses
Indemnification
Waiver
Third Party Rights
Further Assurance
Language
Notices
Banking & Financial Services
Real Estate
Construction
Trading & Commerce
Manufacturing
Retail
Professional Services
Hospitality
Information Technology
Logistics & Transportation
Legal
Finance
Compliance
Treasury
Credit Control
Risk Management
Commercial Operations
Corporate Secretariat
Accounts Receivable
Business Development
Chief Financial Officer
Finance Manager
Legal Counsel
Compliance Officer
Credit Manager
Treasury Manager
Accounts Receivable Manager
Contracts Manager
Risk Manager
Company Secretary
Business Development Manager
Commercial Director
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