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Guarantee Facility Agreement
"I need a Guarantee Facility Agreement for a Saudi construction company requiring a SAR 50 million facility from a local bank to cover performance bonds and advance payment guarantees for government infrastructure projects, with the facility to commence in March 2025."
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You keep IP ownership聽of your information
1. Parties: Identification of the guarantor, beneficiary, and any other relevant parties
2. Background: Context of the guarantee facility and relationship between parties
3. Definitions and Interpretation: Key terms used in the agreement and rules of interpretation
4. Facility Details: Nature, amount, and purpose of the guarantee facility
5. Islamic Finance Compliance: Declarations and provisions ensuring Sharia compliance
6. Conditions Precedent: Requirements to be met before the facility becomes effective
7. Issuance of Guarantees: Process and requirements for issuing individual guarantees under the facility
8. Fees and Charges: Applicable fees, commission and charges (structured in compliance with Sharia)
9. Representations and Warranties: Statements of fact and assurances given by the parties
10. Covenants: Ongoing obligations of the parties during the facility period
11. Events of Default: Circumstances constituting default and consequences
12. Indemnities: Indemnification obligations of the parties
13. Payments: Payment mechanisms and procedures
14. Term and Termination: Duration of the facility and termination provisions
15. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction of Saudi courts
1. Security: Required when the facility is secured by additional collateral or assets
2. Counter-Indemnity: Used when there are multiple parties providing back-to-back guarantees
3. Currency Provisions: Included for facilities involving multiple currencies
4. Assignment and Transfer: Required when transfer rights need to be specifically addressed
5. Anti-Money Laundering: Detailed AML provisions when required by regulatory requirements
6. Multiple Guarantor Provisions: Required when there are multiple guarantors
7. Agency Provisions: Included when an agent is appointed to manage the facility
8. Electronic Banking Provisions: Required when electronic banking services are part of the facility
1. Form of Guarantee Request: Template for requesting issuance of guarantees under the facility
2. Form of Guarantee: Standard format for guarantees to be issued under the facility
3. Fee Schedule: Detailed breakdown of all applicable fees and charges
4. Conditions Precedent Documents: List of required documents and conditions to be satisfied
5. Authorized Signatories: List of persons authorized to request guarantees and execute documents
6. Existing Guarantees: Details of any existing guarantees to be brought under the facility
7. Compliance Documents: Required Sharia compliance certificates and approvals
8. Form of Reports: Templates for any required periodic reporting
Authors
Banking and Financial Services
Construction and Infrastructure
International Trade
Manufacturing
Oil and Gas
Real Estate Development
Government Contractors
Telecommunications
Defense
Healthcare
Education
Retail
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Banking
Trade Finance
Credit
Islamic Banking
Project Finance
Commercial
Operations
Chief Financial Officer
Treasury Manager
Legal Counsel
Compliance Officer
Risk Manager
Corporate Banking Manager
Trade Finance Manager
Credit Manager
Relationship Manager
Project Finance Manager
Islamic Banking Specialist
Contract Administrator
Finance Director
Company Secretary
Commercial Director
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