Second Trust Deed Template for United Arab Emirates

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Key Requirements PROMPT example:

Second Trust Deed

"I need a Second Trust Deed for a commercial property in Dubai Marina, where the trustor is seeking additional financing of AED 5 million from an Islamic bank, with the deed to be effective from March 1, 2025."

Document background
The Second Trust Deed is a crucial document in UAE property financing transactions where additional security is required over real estate that is already subject to a first trust deed. This document is commonly used in situations where property owners seek additional financing while maintaining existing loan arrangements. The Second Trust Deed must comply with UAE federal laws, relevant emirate-specific regulations, and often Islamic finance principles. It typically includes comprehensive details about the property, the secured obligations, subordination provisions, enforcement mechanisms, and registration requirements. The document's effectiveness is dependent on proper registration with relevant UAE authorities and careful structuring to ensure compatibility with the first trust deed's terms. It serves as a vital tool in complex property financing structures while protecting the hierarchical rights of multiple security holders.
Suggested Sections

1. Parties: Identification of the Trustor (property owner), Trustee, and Beneficiary (second lender)

2. Background: Context of the transaction, including reference to the first trust deed and the reason for this second trust deed

3. Definitions: Key terms used throughout the deed, including property description, secured obligations, and relevant dates

4. Grant of Security: The formal grant of security interest over the property, subject to the first trust deed

5. Subordination Provisions: Express acknowledgment of and subordination to the first trust deed

6. Secured Obligations: Details of the debt or obligations secured by this second trust deed

7. Covenants of the Trustor: Trustor's obligations regarding property maintenance, insurance, taxes, and other ongoing commitments

8. Default Provisions: Events of default and their consequences

9. Enforcement Rights: Trustee's rights and remedies upon default, subject to first trust deed rights

10. Registration and Notices: Requirements for registration and recording of the deed

11. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction

Optional Sections

1. Shariah Compliance: Required if the transaction needs to comply with Islamic finance principles

2. Insurance Requirements: Detailed insurance provisions if not covered in main covenants

3. Environmental Matters: Required for commercial properties or when environmental risks are present

4. Cross-Default Provisions: Optional provisions linking defaults under other facilities

5. Assignment and Transfer: Required if parties want to allow transfer of rights under the deed

6. Further Assurance: Optional provisions for additional documentation or actions that may be required

7. Power of Attorney: Optional provision granting specific powers to the Trustee

Suggested Schedules

1. Property Description: Detailed legal description of the property including title details and registration information

2. Form of Notices: Standard forms for various notices required under the deed

3. Secured Obligations Details: Detailed description of the secured debt or obligations

4. First Trust Deed Details: Summary of key terms from the first trust deed affecting this security

5. Registration Requirements: Specific requirements for registration with relevant UAE authorities

6. Fees and Costs: Schedule of applicable fees, charges and cost arrangements

7. Required Insurance: Detailed insurance requirements and minimum coverage levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Banking & Finance

Islamic Finance

Commercial Property

Residential Property

Construction

Property Development

Investment

Asset Management

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Property Management

Islamic Banking

Security Administration

Corporate Finance

Asset Management

Relevant Roles

Legal Counsel

Property Finance Manager

Real Estate Manager

Compliance Officer

Islamic Finance Specialist

Property Rights Registrar

Mortgage Officer

Trust Administrator

Finance Director

Real Estate Director

Risk Manager

Property Portfolio Manager

Security Trustee

Transaction Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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