Asset Pledge Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Asset Pledge Agreement

"I need an Asset Pledge Agreement under UAE law for pledging manufacturing equipment and inventory as security for a 5-year term loan facility of AED 10 million, with the agreement to be effective from March 1, 2025."

Document background
The Asset Pledge Agreement is a fundamental security document used in the United Arab Emirates when a party (pledgor) needs to provide security over specific assets to another party (pledgee), typically in connection with financing arrangements or other commercial transactions. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and other relevant regulations, including the UAE Commercial Code and Secured Transactions Law. It is commonly used in various scenarios including corporate financing, asset-based lending, and commercial transactions where security is required. The document details the pledged assets, secured obligations, maintenance requirements, enforcement mechanisms, and other essential terms to create an effective security interest under UAE law.
Suggested Sections

1. Parties: Identification of the Pledgor and Pledgee with full legal names and addresses

2. Background: Context of the pledge arrangement, reference to any underlying obligations or facility agreements

3. Definitions: Definitions of key terms used throughout the agreement, including 'Pledged Assets', 'Secured Obligations', and 'Security Period'

4. Creation of Pledge: Express provisions creating the pledge and compliance with UAE Civil Code requirements

5. Secured Obligations: Detailed description of the obligations secured by the pledge

6. Representations and Warranties: Pledgor's representations regarding ownership, authority, and condition of pledged assets

7. Perfection Requirements: Steps required to perfect the pledge under UAE law, including registration requirements

8. Maintenance of Pledged Assets: Obligations regarding the maintenance and preservation of the pledged assets

9. Events of Default: Circumstances constituting default under the agreement

10. Enforcement: Rights and procedures for enforcement in accordance with UAE law

11. Notices: Process for serving notices between parties

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction of UAE courts

Optional Sections

1. Insurance: Required when pledged assets need to be insured

2. Income and Distributions: Required when pledged assets generate income or distributions

3. Further Assurance: Additional actions required to perfect or maintain the pledge

4. Power of Attorney: Required when Pledgee needs direct authority to act regarding the assets

5. Tax Provisions: Required when tax implications need to be addressed

6. Release and Discharge: Detailed provisions for releasing the pledge upon satisfaction of obligations

7. Assignment and Transfer: Required when transfer rights need to be addressed

8. Electronic Execution: Required when agreement may be executed electronically

Suggested Schedules

1. Schedule 1 - Description of Pledged Assets: Detailed description and identification of all assets subject to the pledge

2. Schedule 2 - Secured Obligations: Detailed list of secured obligations if complex or numerous

3. Schedule 3 - Perfection Requirements: Specific steps and documents required for perfection

4. Schedule 4 - Form of Notice: Template notices required for perfection or enforcement

5. Schedule 5 - Power of Attorney: Form of power of attorney if required

6. Appendix A - Required Documents: List of documents required for pledge registration and perfection

7. Appendix B - Asset Valuation: Valuation details and methodology for pledged assets

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

Relevant legal definitions
Relevant Industries

Banking & Finance

Real Estate

Manufacturing

Trading & Commerce

Investment Services

Infrastructure & Construction

Energy & Resources

Technology

Transportation & Logistics

Healthcare

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Commercial

Credit

Investment

Asset Management

Relevant Roles

Chief Financial Officer

General Counsel

Legal Director

Finance Director

Treasury Manager

Risk Manager

Compliance Officer

Corporate Secretary

Security Trustee

Commercial Director

Asset Manager

Investment Manager

Credit Manager

Legal Counsel

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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