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Debt Transfer Agreement
"I need a Debt Transfer Agreement under Saudi law for transferring a construction project debt of SAR 5 million from ABC Construction LLC to XYZ Developers Ltd, with completion required by March 2025 and including provisions for existing performance bonds."
1. Parties: Identification of the Original Creditor, Original Debtor, and New Debtor
2. Background: Description of the original debt, reason for transfer, and confirmation of Sharia compliance
3. Definitions and Interpretation: Key terms used in the agreement, including Arabic legal terms where relevant
4. Transfer of Debt: Core provisions detailing the transfer of debt obligations from Original Debtor to New Debtor
5. Consideration: Details of any consideration paid between Original Debtor and New Debtor
6. Effective Date: Specification of when the transfer becomes effective
7. Representations and Warranties: Statements from all parties confirming their capacity, authority, and Sharia compliance
8. Original Debtor's Obligations: Ongoing obligations and responsibilities of the Original Debtor
9. New Debtor's Obligations: Commitments and responsibilities assumed by the New Debtor
10. Creditor's Acknowledgments: Creditor's consent and acknowledgments regarding the transfer
11. Notices: Process for sending and receiving formal communications
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction of Saudi courts
1. Security Arrangements: Required if any security or guarantees are being transferred or new security is being provided
2. Regulatory Compliance: Needed if the transfer involves regulated entities or requires regulatory approvals
3. Tax Provisions: Include if there are specific tax implications or Zakat considerations
4. Confidentiality: Optional section for sensitive commercial arrangements
5. Further Assurance: Include if additional documents or actions may be needed post-completion
6. Partial Transfer Provisions: Required if only part of the debt is being transferred
1. Schedule 1 - Original Debt Details: Complete details of the original debt being transferred, including amount, payment terms, and history
2. Schedule 2 - Transfer Documents: Forms and notices required to effect the transfer
3. Schedule 3 - Existing Security: Details of any existing security arrangements
4. Schedule 4 - Payment Schedule: New payment terms and schedule if different from original debt
5. Appendix A - Required Notices: Template notices required for various parties
6. Appendix B - Regulatory Approvals: Copies of any required regulatory approvals or correspondence
Authors
Banking & Financial Services
Real Estate
Construction
Manufacturing
Trading & Commerce
Infrastructure
Energy
Healthcare
Telecommunications
Professional Services
Legal
Finance
Treasury
Credit Control
Risk Management
Compliance
Corporate Secretariat
Commercial Operations
Business Development
Corporate Finance
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Financial Controller
Treasury Manager
Credit Manager
Risk Manager
Compliance Officer
Company Secretary
Business Development Director
Restructuring Officer
Commercial Director
Managing Director
Board Member
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