General Security Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

General Security Agreement

"I need a General Security Agreement under UAE law to secure a AED 10 million loan facility between our manufacturing company as security provider and Emirates NBD as secured party, with the security to be granted over our machinery, equipment, and receivables."

Document background
The General Security Agreement is a fundamental document in UAE secured lending transactions, used to create security interests over various types of assets to secure financial or other obligations. This document is essential in both conventional and Islamic financing structures in the UAE, requiring careful consideration of local law requirements, including the UAE Civil Code, Commercial Code, and relevant security registration regulations. The agreement must be structured to ensure enforceability under UAE law and typically includes provisions for security creation, perfection requirements, enforcement mechanisms, and compliance with local registration procedures. It's commonly used in corporate financing, project finance, and general commercial transactions where security is required, and must often be executed in both English and Arabic to comply with local requirements.
Suggested Sections

1. Parties: Identification of the Security Provider (Grantor) and Security Taker (Secured Party)

2. Background: Context of the security arrangement, reference to underlying obligations, and purpose of the security

3. Definitions and Interpretation: Key terms used throughout the agreement, including specific UAE law concepts and Arabic translations where necessary

4. Grant of Security: Core provisions creating the security interest over the secured assets

5. Secured Obligations: Definition and scope of the obligations being secured

6. Representations and Warranties: Standard and UAE-specific representations regarding authority, ownership, and capacity

7. Covenants: Ongoing obligations of the Security Provider regarding the secured assets

8. Perfection and Protection of Security: Requirements for registration and perfection under UAE law

9. Enforcement: Rights and remedies upon default, compliant with UAE enforcement procedures

10. Power of Attorney: Appointment of the Secured Party as attorney for security-related matters

11. Further Assurances: Obligations to execute additional documents and take further actions

12. Payments and Discharge: Provisions regarding payments, application of proceeds, and discharge of security

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

Optional Sections

1. Security over Bank Accounts: Specific provisions for bank account security, required when bank accounts are part of the secured assets

2. Security over Contracts: Additional provisions for assignment of contractual rights, used when contracts form part of the security

3. Security over Intellectual Property: Specific provisions for IP security, required when IP assets are included

4. Security over Insurance: Provisions regarding insurance policies and proceeds, needed when insurance forms part of the security

5. Parallel Debt: Required when dealing with multiple secured parties or syndicated facilities

6. Islamic Finance Provisions: Required when the security needs to be Shariah-compliant

7. Language: Provisions regarding Arabic translation and prevailing language, required when official Arabic version is needed

Suggested Schedules

1. Schedule 1 - Secured Assets: Detailed description and identification of all assets subject to the security

2. Schedule 2 - Form of Notice: Template notices for perfecting security over certain assets (e.g., bank accounts, receivables)

3. Schedule 3 - Form of Acknowledgment: Template acknowledgments from relevant third parties

4. Schedule 4 - Secured Party Special Rights: Specific rights and powers granted to the Secured Party

5. Schedule 5 - Security Provider Details: Corporate and registration details of the Security Provider

6. Schedule 6 - Security Assets Location: Details of where secured assets are located or registered

7. Appendix 1 - Power of Attorney: Form of Power of Attorney compliant with UAE law requirements

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
Clauses
Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Trading and Commerce

Construction

Energy and Resources

Technology

Healthcare

Retail

Logistics and Transportation

Industrial

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretarial

Credit

Commercial

Operations

Security Administration

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Treasury Manager

Risk Manager

Compliance Officer

Security Trustee

Facility Agent

Commercial Director

Company Secretary

Chief Legal Officer

Banking Relationship Manager

Credit Risk Officer

Transaction 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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