Document background
The Margin Loan Agreement is a specialized financing document used when a lender provides credit facilities to borrowers secured against a portfolio of financial instruments. This agreement is particularly relevant in the UAE financial markets, where margin lending is regulated by both the UAE Central Bank and the Securities and Commodities Authority. The document establishes the framework for the lending relationship, including crucial elements such as margin maintenance requirements, collateral arrangements, and enforcement mechanisms. It is designed to comply with UAE banking regulations and financial services laws, incorporating both conventional and Islamic finance principles where necessary. The agreement is typically used by financial institutions, investment banks, and brokerage firms providing leverage to their clients for investment purposes, with specific provisions addressing local regulatory requirements and market practices.
