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Secured Loan Agreement Template for Qatar

This is a comprehensive legal agreement governed by Qatar law that establishes the terms and conditions for a secured loan facility. The document incorporates key provisions required under Qatar's Civil and Commercial Codes, including detailed security arrangements, enforcement mechanisms, and compliance with local banking regulations. It addresses both conventional and Islamic finance principles where applicable, reflecting Qatar's dual banking system. The agreement includes provisions for security creation, perfection requirements under Qatar law, and enforcement procedures in accordance with local civil procedure regulations.

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What is a Secured Loan Agreement?

The Secured Loan Agreement is a fundamental financing document used when a lender provides funding to a borrower under Qatar law, with the loan being secured against specific assets or guarantees. This document is essential for financial institutions and businesses engaging in secured lending transactions within Qatar's jurisdiction, whether through conventional or Islamic banking structures. The agreement must comply with Qatar's Civil Code, Commercial Code, and banking regulations, while also considering local security perfection requirements and enforcement procedures. It typically includes comprehensive details about the facility, security package, conditions precedent, representations, covenants, and events of default, all tailored to meet Qatar legal requirements and market practice.

What sections should be included in a Secured Loan Agreement?

1. Parties: Identification of the lender, borrower, and any guarantors or security providers

2. Background: Context of the loan arrangement and purpose of the facility

3. Definitions and Interpretation: Definitions of key terms and interpretation principles

4. The Facility: Details of the loan amount, purpose, and availability

5. Conditions Precedent: Prerequisites that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for utilizing the loan

7. Interest and Fees: Interest calculation, payment terms, and applicable fees

8. Repayment: Terms and schedule for repayment of the loan

9. Security: Description of security arrangements and enforcement rights

10. Representations and Warranties: Statements of fact and assurances from the borrower

11. Covenants: Positive and negative obligations of the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Changes to Parties: Rules regarding assignment and transfer rights

14. Administration: Operational aspects of the loan

15. Notices: Communication procedures between parties

16. Governing Law and Jurisdiction: Choice of Qatar law and jurisdiction provisions

What sections are optional to include in a Secured Loan Agreement?

1. Islamic Finance Provisions: Required if the loan needs to be Shariah-compliant, including specific structuring requirements

2. Intercreditor Provisions: Required if multiple lenders are involved, establishing priority and voting rights

3. Security Trustee Provisions: Needed if security is held through a security trustee structure

4. Guarantee: Required if third-party guarantees are part of the security package

5. Currency Provisions: Required for multi-currency facilities

6. Tax Gross-Up and Indemnities: Detailed tax provisions if cross-border elements exist

7. Increased Costs: Protection for lenders against regulatory changes, needed for institutional lenders

8. Set-off Rights: Additional set-off provisions if parties maintain banking relationships

What schedules should be included in a Secured Loan Agreement?

1. Conditions Precedent: Detailed list of required documents and conditions

2. Form of Drawdown Request: Template for borrower to request loan disbursement

3. Repayment Schedule: Detailed amortization or repayment schedule

4. Security Documents: Forms of security documents and perfection requirements

5. Form of Transfer Certificate: Template for transferring loan participations

6. Financial Covenants: Detailed financial ratios and calculations

7. Security Assets Schedule: Detailed description of secured assets

8. Fee Schedule: Breakdown of all applicable fees and charges

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

Jurisdiction

Qatar

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use

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