Document background
The Loan and Security Agreement is a fundamental document in UAE secured lending transactions, used when a lender provides financing to a borrower while taking security over specific assets as collateral. This document is essential for various financing arrangements in the UAE, from corporate lending to project finance, and can be adapted for both conventional and Islamic financing structures. It must comply with UAE federal laws, including the Civil Code, Commercial Transactions Law, and specific security-related regulations. The agreement typically combines detailed facility terms (including drawdown mechanics, interest/profit calculations, and repayment provisions) with comprehensive security arrangements (covering creation, perfection, and enforcement of security interests). The document's structure reflects UAE legal requirements for security creation and registration, while potentially incorporating Sharia-compliant elements when needed for Islamic financing.
