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Loan On Rental Agreement
"I need a Loan On Rental Agreement under UAE law for a commercial property in Dubai, where a bank will provide AED 5 million financing against rental income from a retail complex, with the loan to commence in March 2025 and include Islamic finance compliance provisions."
1. Parties: Identifies all parties to the agreement including the lender, borrower, and any guarantors or related parties
2. Background: Sets out the context of the agreement, including details of the underlying rental agreement and the purpose of the loan
3. Definitions: Defines key terms used throughout the agreement, including references to the rental agreement, property, and payment terms
4. Loan Amount and Purpose: Specifies the loan amount, purpose, and any conditions precedent to drawdown
5. Rental Payment Assignment: Details how rental payments will be assigned or directed to service the loan
6. Payment Terms: Specifies repayment schedule, interest rates, calculation methods, and payment mechanisms
7. Security Arrangements: Details the security structure, including assignment of rental payments and any additional collateral
8. Representations and Warranties: Standard and specific representations regarding the rental agreement, property, and parties' capacity
9. Covenants: Ongoing obligations of the borrower regarding the rental agreement and property management
10. Events of Default: Defines circumstances constituting default and corresponding remedies
11. Termination: Conditions and process for terminating the agreement
12. Governing Law and Jurisdiction: Specifies UAE law as governing law and defines jurisdiction for disputes
1. Islamic Finance Compliance: Required if the loan needs to be Sharia-compliant, detailing the Islamic structure used
2. Property Management: Include if the lender requires specific property management arrangements
3. Insurance: Required if specific insurance coverage is mandated for the property or rental income
4. Tax Provisions: Include if any specific tax arrangements or VAT considerations need to be addressed
5. Step-In Rights: Include if lender requires right to step into the landlord's position in certain circumstances
6. Third Party Rights: Required if any third parties (such as property managers) have specific rights under the agreement
7. Force Majeure: Include if specific force majeure provisions are needed beyond standard UAE law provisions
1. Schedule 1 - Rental Agreement Details: Copy or key details of the underlying rental agreement
2. Schedule 2 - Property Details: Detailed description of the property including title deed information
3. Schedule 3 - Payment Schedule: Detailed repayment schedule including dates, amounts, and calculation methods
4. Schedule 4 - Security Documents: List and copies of all security documents
5. Schedule 5 - Conditions Precedent: List of all documents and conditions required before drawdown
6. Appendix A - Form of Notice to Tenant: Template notice informing tenant of the assignment of rental payments
7. Appendix B - Form of Payment Instructions: Template for rental payment redirection instructions
8. Appendix C - Compliance Certificates: Templates for ongoing compliance certification
Authors
Applicable Law
Assignment
Business Day
Collateral
Conditions Precedent
Default Interest Rate
Default Notice
Drawdown Date
Effective Date
Event of Default
Facility
Finance Documents
Financial Indebtedness
Governing Law
Interest Payment Date
Interest Period
Interest Rate
Lender
Loan
Loan Amount
Material Adverse Effect
Maturity Date
Outstanding Amount
Payment Date
Permitted Security Interest
Property
Property Manager
Rental Agreement
Rental Income
Rental Payment Account
Rental Period
Repayment Date
Repayment Schedule
Security
Security Agent
Security Documents
Security Interest
Tenant
Term
UAE
UAE Dirham
Facility Terms
Purpose
Conditions Precedent
Drawdown
Interest
Repayment
Prepayment
Rental Assignment
Security
Bank Accounts
Representations and Warranties
Information Undertakings
General Undertakings
Property Undertakings
Events of Default
Acceleration
Assignment and Transfer
Payment Mechanics
Set-off
Notices
Calculations and Certificates
Partial Invalidity
Remedies and Waivers
Amendments and Waivers
Confidentiality
Counterparts
Governing Law
Enforcement
Jurisdiction
Service of Process
Waiver of Interest
Cost and Expenses
Indemnities
Tax Gross-up
Property Management
Insurance
Force Majeure
Real Estate
Banking & Finance
Commercial Property
Residential Property
Retail
Industrial
Hospitality
Office Space
Islamic Finance
Property Development
Asset Management
Investment Banking
Legal
Finance
Real Estate
Credit Risk
Compliance
Commercial
Asset Management
Treasury
Investment
Property Management
Due Diligence
Relationship Management
Legal Counsel
Finance Manager
Property Manager
Real Estate Director
Loan Officer
Credit Risk Manager
Compliance Officer
Commercial Director
Asset Manager
Investment Manager
Treasury Manager
Chief Financial Officer
Real Estate Investment Manager
Portfolio Manager
Relationship Manager
Due Diligence Officer
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