Receivables Pledge Agreement Template for United Arab Emirates

A Receivables Pledge Agreement is a key security document used in UAE financing transactions where a company seeks to obtain financing by granting security over its receivables. This document is particularly relevant in working capital financing, trade finance, and general secured lending transactions. The agreement must comply with UAE Federal Law No. 4 of 2020 and its implementing regulations, which provide the framework for creating and perfecting security interests over movable assets, including receivables. The document includes specific provisions required under UAE law for creating an enforceable security interest, procedures for perfection through registration in the Emirates Movable Collateral Registry, and mechanisms for managing and collecting the pledged receivables.

1. Parties: Identification of the Pledgor (owner of receivables), the Pledgee (secured party), and any other relevant parties such as the Security Agent

2. Background: Context of the pledge agreement, reference to any underlying facility or principal agreements, and purpose of the security

3. Definitions and Interpretation: Definitions of key terms used in the agreement and interpretation clauses, including references to UAE law concepts

4. Creation of Pledge: Express provisions creating the pledge over the receivables, including language required under UAE law for valid security creation

5. Secured Obligations: Definition and scope of the obligations secured by the pledge

6. Perfection Requirements: Steps required to perfect the pledge under UAE law, including registration requirements

7. Representations and Warranties: Pledgor's representations regarding ownership, authority, and status of receivables

8. Covenants: Ongoing obligations of the Pledgor regarding the receivables and maintenance of the security

9. Collections and Receivables Management: Provisions regarding collection of receivables, account management, and payment directions

10. Enforcement: Rights and remedies of the Pledgee upon default, compliant with UAE enforcement procedures

11. Power of Attorney: Appointment of the Pledgee as attorney for specific enforcement and perfection actions

12. Costs and Expenses: Allocation of costs related to the pledge, including registration and enforcement

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction of UAE courts

15. Execution: Execution blocks and signing requirements