Requirements and procedures accompanying application to corporate loan

Dear,

Please find my answer below.

IS THIS TOPIC FAMILIAR TO YOU?

Yes, it's a common practice even here in the UAE.

3.1) Which conditions the surety contract should comply with in order for the surety contract to be valid and enforceable?

Acutely, since the contract will be with the mother company here, it should be complying with the laws and regulations here in the UAE.

However, in the meantime, since it will be enforced abroad it shouldn't have any conflict with the public policy or system there.

From our expertise, there is no big difference in the commercial and banking issues between the UAE and the most of the other countries, especially that they all should follow ICC rules.

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.

There are things relevant here but it depends whether the jurisdiction will be here in the UAE or in abroad, e.g. in order for the bank to go after the mother company for any claim, the bank should first within 6 months from the due date to request the subsidiary company to pay, if the bank didn't do this within the 6 months, his claim against the mother company can be rejected here in the UAE.

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)?

If I do understand the question well, you mean to say if the bank wants to initiate a legal action to enforce the contract here, it will be a normal case takes from 6 months to 1.5 years, and the cost for the litigation will be 40 k for the court fees.

I hope the above is sufficient to you, should you still have any clarification please contact me directly 0555432305