Document background
The Line of Credit Agreement Template is designed for use in the United Arab Emirates to establish revolving credit facilities between financial institutions and borrowers. This template addresses the specific requirements of UAE banking regulations, including Central Bank directives and commercial law provisions. It's particularly useful when setting up flexible financing arrangements that allow borrowers to draw down funds up to a predetermined limit, repay, and reborrow as needed. The document includes essential provisions for both conventional and Islamic banking structures, making it versatile for various financial institutions operating in the UAE. The template covers crucial elements such as facility terms, security arrangements, compliance requirements, and enforcement mechanisms, all aligned with UAE legal framework and banking practices. It's commonly used for business financing, working capital management, and ongoing operational funding needs.
