Document background
The Credit Terms Agreement Template is designed for use in the United Arab Emirates financial sector, providing a standardized framework for establishing credit facilities between financial institutions and borrowers. This template is crafted to comply with UAE Federal Laws, including the Commercial Transactions Law (Federal Law No. 18 of 1993) and UAE Central Bank regulations. It is particularly useful when establishing new credit relationships or reviewing existing credit arrangements, incorporating both conventional and Islamic finance principles where needed. The document addresses key areas such as credit limits, payment terms, security requirements, and enforcement mechanisms, while maintaining flexibility to accommodate various business needs and regulatory requirements. It serves as a foundational document for managing credit relationships in the UAE market, ensuring legal compliance while protecting the interests of all parties involved.
