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Loan Guarantee Form
"I need a Loan Guarantee Form for a corporate guarantor (Saudi LLC) securing a 5-year commercial real estate loan of 10 million SAR, with the guarantee to become effective from March 1, 2025, and including specific provisions for multiple drawdowns."
1. Parties: Identification of the Guarantor, Principal Debtor (Borrower), and Beneficiary (Lender)
2. Background: Context of the underlying loan and purpose of the guarantee
3. Definitions: Key terms used throughout the guarantee agreement
4. Guarantee and Indemnity: Core provisions establishing the guarantee obligations and scope
5. Sharia Compliance Declaration: Statement confirming the guarantee's compliance with Islamic principles
6. Limit of Guarantee: Maximum amount of the guarantor's liability
7. Duration of Guarantee: Term of the guarantee and conditions for termination
8. Guarantor's Representations and Warranties: Confirmations regarding capacity, authority, and financial condition
9. Payment Obligations: Terms and procedures for making payments under the guarantee
10. Enforcement and Remedies: Rights of the beneficiary to enforce the guarantee
11. Notices: Communication procedures between parties
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction
1. Security: Include when the guarantee is supported by specific collateral or security
2. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability
3. Corporate Authority: Include for corporate guarantors, detailing corporate approvals
4. Assignment and Transfer: Include if the guarantee rights may be transferred or assigned
5. Currency Provisions: Required for cross-border transactions involving multiple currencies
6. Tax Provisions: Include when tax implications need to be addressed specifically
7. Financial Covenants: Include when ongoing financial requirements are imposed on the guarantor
1. Schedule 1 - Form of Demand: Template for making a demand under the guarantee
2. Schedule 2 - Guaranteed Obligations: Detailed description of the underlying loan obligations
3. Schedule 3 - Conditions Precedent: List of documents and conditions required before guarantee becomes effective
4. Schedule 4 - Guarantor Information: Detailed information about the guarantor including contact details and address for notices
5. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and resolutions
6. Appendix B - Specimen Signatures: Authorized signatures for the guarantor
Authors
Banking and Financial Services
Real Estate and Construction
Manufacturing
Trade and Commerce
Infrastructure Development
Healthcare
Education
Telecommunications
Energy and Utilities
Hospitality and Tourism
Legal
Compliance
Credit Risk
Corporate Finance
Sharia Advisory
Banking Operations
Treasury
Documentation
Risk Management
Corporate Secretariat
Legal Counsel
Compliance Officer
Credit Risk Manager
Corporate Finance Manager
Sharia Compliance Officer
Banking Relationship Manager
Chief Financial Officer
Treasury Manager
Loan Officer
Corporate Secretary
Finance Director
Risk Assessment Officer
Legal Documentation Specialist
Banking Operations Manager
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