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Trust Account Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Trust Account Agreement

"I need a Trust Account Agreement for a UAE-based real estate development project where our company will act as trustee managing buyer deposits for off-plan property sales, with expected completion in March 2025."

Document background
A Trust Account Agreement is essential for establishing and managing trust arrangements in the UAE financial sector. This document is commonly used when there is a need to segregate and manage funds for specific purposes, such as real estate transactions, investment management, or escrow arrangements. The agreement must align with UAE banking regulations, anti-money laundering laws, and where applicable, Islamic finance principles. It details the appointment of the trustee, account operation procedures, compliance requirements, and reporting obligations. The document is particularly relevant in the UAE market where trust structures are frequently used in commercial transactions and must comply with both federal laws and specific emirate-level regulations. Key considerations include Central Bank guidelines, DIFC/ADGM regulations (where applicable), and UAE commercial law requirements.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement including the trustee, beneficiary(ies), and any other relevant parties

2. Background: Sets out the context and purpose of the trust account arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment of Trustee: Formal appointment of the trustee and acceptance of the role

5. Trust Account Establishment: Details of the trust account setup, including account designation and initial funding

6. Purpose and Scope: Specific purpose of the trust account and permitted activities

7. Trustee Powers and Duties: Comprehensive list of trustee's powers, responsibilities, and obligations

8. Operating Procedures: Procedures for managing the trust account, including deposits, withdrawals, and investments

9. Fees and Expenses: Details of trustee fees, account charges, and payment of expenses

10. Reporting and Records: Requirements for account reporting, record-keeping, and audit procedures

11. Compliance Requirements: Obligations regarding AML/CFT regulations and other applicable laws

12. Liability and Indemnification: Scope of trustee liability and indemnification provisions

13. Term and Termination: Duration of the agreement and circumstances for termination

14. Governing Law and Jurisdiction: Specifies UAE law as governing law and jurisdiction for disputes

15. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Shariah Compliance: Required when the trust account needs to operate in accordance with Islamic finance principles

2. Investment Guidelines: Included when the trust account involves investment activities

3. Multi-Currency Provisions: Required for trust accounts handling multiple currencies

4. Sub-Trust Provisions: Needed when the structure involves sub-trusts or multiple account arrangements

5. Third-Party Rights: Included when third parties have specific rights under the agreement

6. Force Majeure: Optional provisions for extraordinary circumstances affecting account operation

7. Confidentiality: Detailed confidentiality provisions beyond standard requirements

8. Tax Provisions: Specific tax-related provisions when required by the nature of the trust

Suggested Schedules

1. Schedule 1 - Account Details: Specific details of the trust account(s) including account numbers and designations

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and compensation

3. Schedule 3 - Authorized Signatories: List of authorized signatories and their signing powers

4. Schedule 4 - Operating Procedures: Detailed procedures for account operation and management

5. Schedule 5 - Reporting Requirements: Specific reporting formats, frequencies, and requirements

6. Appendix A - KYC Documentation: Required Know Your Customer documentation and verification requirements

7. Appendix B - Compliance Checklist: Checklist of regulatory compliance requirements

8. Appendix C - Forms and Templates: Standard forms for account operations and instructions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































Clauses































Relevant Industries

Banking and Financial Services

Real Estate and Property Development

Legal Services

Investment Management

Construction and Infrastructure

Insurance

Healthcare

Education

Professional Services

Islamic Finance

Relevant Teams

Legal

Compliance

Finance

Treasury

Risk Management

Operations

Customer Relations

Trust Administration

Investment Management

Company Secretariat

Relevant Roles

Legal Counsel

Compliance Officer

Trust Administrator

Account Manager

Financial Controller

Risk Manager

Company Secretary

Banking Relationship Manager

Treasury Manager

Operations Manager

Chief Financial Officer

Investment Manager

Property Manager

Escrow Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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