This letter is used to demand payment of the loan amount which is overdue. The letter states that in case of failure to pay the overdue loan amount, legal proceedings may be initiated against the borrower.
According to Article 715 of Federal Law No. 5 of 1985 on the Civil Transactions Law (as amended), a loan may be granted on condition of a pledge or guarantee.
Article 719 of the same states that:
This document is intended for use in the United Arab Emirates.
This document is provided for reference only and is not intended to be, and should not be considered, legal advice. Determinations about whether this document will be appropriate in your particular situation or jurisdiction should be made after consultation with a legal counsel. Kanoony will not assume any legal liability that may arise from the use of this document.