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Creditor Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Creditor Agreement

"I need a Creditor Agreement for a Sharia-compliant project financing facility of SAR 50 million to be provided by a syndicate of three Saudi banks to a real estate development company, with the facility to be secured by project assets and a corporate guarantee."

Document background
The Creditor Agreement is a fundamental document in Saudi Arabian financial transactions, essential for establishing legally binding and Sharia-compliant financing arrangements. It is primarily used when a financial institution or creditor provides financing to a borrower, requiring detailed documentation of the parties' rights and obligations. The agreement must comply with Saudi Arabian law, including SAMA regulations and Islamic finance principles, making it distinct from conventional lending agreements used in other jurisdictions. It typically includes comprehensive provisions on facility terms, security arrangements, representations and warranties, covenants, and events of default, all structured to ensure Sharia compliance. This document is particularly crucial in the Saudi Arabian market where all financial transactions must adhere to Islamic finance principles while maintaining commercial efficacy.
Suggested Sections

1. Parties: Identification of the creditor(s) and debtor(s), including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the credit arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Sharia Compliance Declaration: Statement confirming the agreement's compliance with Islamic finance principles

5. Facility Details: Description of the credit facility, including amount, purpose, and payment structure

6. Conditions Precedent: Prerequisites that must be satisfied before the facility becomes effective

7. Representations and Warranties: Statements of fact and assurances given by the debtor

8. Covenants: Positive and negative obligations of the debtor during the term of the agreement

9. Events of Default: Circumstances that constitute default and trigger remedial actions

10. Remedies and Enforcement: Rights and actions available to the creditor upon default

11. Payment Provisions: Details of payment mechanics, profit rates (instead of interest), and calculation methods

12. Security: Overview of security arrangements and guarantees

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi Arabian law as governing law and jurisdiction details

15. Execution: Signature blocks and execution formalities

Optional Sections

1. Intercreditor Provisions: Required when multiple creditors are involved, establishing priority and voting rights

2. Currency Provisions: Needed for cross-border transactions involving multiple currencies

3. Tax Provisions: Required when tax implications need specific addressing, particularly in international transactions

4. Assignment and Transfer: Include when rights to assign or transfer the facility need to be addressed

5. Mandatory Prepayment: Required when specific events should trigger mandatory prepayment

6. Account Bank Provisions: Needed when specific banking arrangements are part of the facility

7. Islamic Finance Structure Specifics: Detailed provisions for specific Islamic finance structures (e.g., Murabaha, Ijara) when relevant

Suggested Schedules

1. Facility Summary: Detailed terms of the facility including amounts, profit rates, and payment schedules

2. Form of Drawdown Notice: Template for requesting disbursements under the facility

3. Security Details: Comprehensive list and details of all security arrangements

4. Conditions Precedent Documents: List of required documents and conditions to be satisfied

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Calculation Methods: Detailed methodology for calculating profit rates and other financial terms

7. Contact Details: List of authorized representatives and contact information for all parties

8. Form of Transfer Certificate: Template for documenting any permitted transfers of rights or obligations

9. Sharia Structure Documentation: Details of the Islamic finance structure being used and related requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Islamic Finance

Real Estate and Construction

Manufacturing and Industrial

Energy and Resources

Healthcare

Retail and Consumer

Technology and Telecommunications

Infrastructure and Projects

Trading and Commercial

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Islamic Banking

Corporate Finance

Credit Administration

Operations

Company Secretarial

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Sharia Compliance Officer

Credit Risk Manager

Treasury Manager

Corporate Finance Manager

Financial Controller

Relationship Manager

Compliance Officer

Transaction Manager

Investment Manager

Corporate Secretary

Senior Legal Advisor

Banking Operations Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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