Document background
The Inter Corporate Loan Agreement is essential for businesses in the UAE seeking to establish formal lending arrangements outside traditional banking channels. This document is typically used when one corporation provides financial facilities to another, requiring careful structuring to comply with UAE Civil Code, Commercial Transactions Law, and where applicable, Sharia principles. The agreement becomes particularly relevant in group company financing, strategic partnerships, or when traditional banking options are not preferred. It must address specific UAE requirements regarding interest calculations, security registration, and enforcement mechanisms while ensuring compliance with local corporate lending regulations. The document includes comprehensive provisions for loan terms, security arrangements, corporate guarantees, and default scenarios, all tailored to the UAE legal framework.
