Document background
This Subordinated Loan Agreement Template is designed for use in the United Arab Emirates, providing a framework for documenting subordinated debt financing arrangements. The template is particularly relevant when companies need to establish a clear hierarchy of debt, with this loan being subordinate to senior obligations. It incorporates all necessary provisions required under UAE law, including compliance with both UAE Civil Code and Commercial Code requirements. The document includes comprehensive sections covering loan terms, subordination mechanisms, interest calculations (with options for both conventional and Islamic structures), security arrangements, and enforcement provisions. This template is specifically tailored for UAE transactions, incorporating local market practices and regulatory requirements while maintaining international standards for subordinated financing. The agreement is structured to be adaptable for various transaction sizes and complexities, making it suitable for both bilateral and syndicated subordinated loan arrangements.
