Loan Commission Agreement Generator for United Arab Emirates

The Loan Commission Agreement is a crucial document used in the UAE financial sector when a financial institution engages a commission agent to facilitate loan arrangements. This agreement type is particularly relevant in the UAE market where financial intermediation plays a significant role in commercial lending. The document must comply with UAE federal laws and Central Bank regulations, potentially including Islamic finance principles. It typically covers commission calculations, payment structures, regulatory compliance requirements, and service scope. The agreement is essential for documenting the relationship between financial institutions and their commission agents, ensuring transparency in financial intermediation, and maintaining compliance with local regulations.

1. Parties: Identifies and defines the parties to the agreement, including the commissioner (typically a bank or financial institution) and the commission agent

2. Background: Sets out the context of the agreement, including the underlying loan facility and the purpose of the commission arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Appointment and Scope: Details the appointment of the commission agent and the scope of services to be provided

5. Commission Structure: Specifies the commission rates, calculation methods, and payment terms

6. Payment Terms: Details the mechanics of commission payments, including timing, currency, and payment methods

7. Representations and Warranties: Standard representations and warranties from both parties

8. Obligations of the Parties: Detailed responsibilities and obligations of both the commissioner and commission agent

9. Compliance Requirements: Regulatory compliance obligations including UAE Central Bank requirements

10. Confidentiality: Provisions regarding the handling of confidential information

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Governing Law and Jurisdiction: Specifies UAE law as governing law and establishes jurisdiction for disputes