Financial Support Agreement Template for United Arab Emirates

The Financial Support Agreement is a crucial document used in the UAE business environment when one entity commits to providing financial assistance to another. This agreement is particularly relevant in group company structures, project financings, or business rescue scenarios within the UAE jurisdiction. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 18 of 1993 (Commercial Code), among other relevant regulations. The document typically details the support amount, disbursement conditions, repayment terms (if applicable), security arrangements, and compliance requirements. It's essential for establishing clear obligations and rights between parties while ensuring adherence to UAE Central Bank regulations and other applicable financial laws. The agreement often includes provisions for regular reporting, monitoring mechanisms, and specific trigger events that may affect the support arrangement.

1. Parties: Identification of the support provider and recipient, including full legal names, addresses, and registration details

2. Background: Context of the agreement, relationship between parties, and purpose of the financial support

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including financial terms and performance metrics

4. Purpose and Scope: Detailed description of the financial support arrangement, including amount, purpose, and intended use

5. Support Amount and Disbursement: Specifics of the financial support amount, currency, disbursement schedule, and conditions precedent

6. Conditions Precedent: Prerequisites that must be satisfied before the financial support becomes available

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and financial condition

8. Covenants: Ongoing obligations of the recipient regarding use of funds, reporting, and compliance

9. Payment Terms: Details of any repayment obligations, including schedule, interest (if applicable), and payment mechanisms

10. Security: Details of any security or guarantees provided to secure the financial support

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Circumstances under which the agreement can be terminated and the consequences of termination

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution

14. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment