Questions & Answers
Legal opinion on the requirements of applying to a corporate loan
CASE PRESENTATION
1) A company from the UAE has a subsidiary abroad (100% of the shares).
2) The subsidiary would like to contract an investment loan and the bank is asking for a surety contract issued by the mother company.
3) A legal opinion is necessary to basically present:
3.1) Which conditions the surety contract should comply with in order for the surety contract to be valid and enforceable?
3.2) If any limitation (territorial, financial limit, time to claim, competences, signing procedure that has been followed, or any other...etc.) is present in respect of a surety contract assumed by a company from the UAE toward a foreign bank while supporting its subsidiary from abroad.
3.3) What is the legal procedure that applies when enforcing a surety contract that is a related to a subsidiary from abroad (actions / estimated cost / estimated time)?
Thank you for your question.
Kindly inform us also whether the bank has its own template or if the law firm only requires to answer the questions.
Please note, in order to advise you in this matter, we require more information about both companies (Parent & Subsidiary) and we also need to review the corporate documents.
Therefore, you may please send us an email to our office at info@hmlc.ae along with your contact details, so that we could advise you accordingly.
Thank you once again and have a great day!
