Ƶ

Loan Agreement Between Parent Company And Subsidiary for Saudi Arabia

Loan Agreement Between Parent Company And Subsidiary Template for Saudi Arabia

A comprehensive loan agreement template designed for use between parent companies and their subsidiaries in Saudi Arabia, incorporating both conventional commercial lending principles and mandatory Shariah compliance requirements. This agreement is structured to comply with Saudi Arabian commercial law, banking regulations, and Islamic finance principles, while providing a framework for intra-group financing arrangements. The document includes essential provisions for loan terms, profit calculation methods, security arrangements, and regulatory compliance requirements specific to the Saudi Arabian jurisdiction.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Loan Agreement Between Parent Company And Subsidiary

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Loan Agreement Between Parent Company And Subsidiary?

The Loan Agreement Between Parent Company And Subsidiary is a critical document used in corporate group structures operating within Saudi Arabia where intra-group financing is required. This agreement template is specifically designed to facilitate financial arrangements between related companies while ensuring compliance with Saudi Arabian laws, regulations, and Shariah principles. It is commonly used when a parent company provides financing to its subsidiary for operational needs, expansion projects, or working capital requirements. The document incorporates necessary provisions for regulatory compliance, including Saudi Arabian Companies Law requirements, ZATCA regulations, and Islamic finance principles. It includes detailed sections on profit calculation (rather than interest), security arrangements, and corporate governance requirements. This template is particularly relevant for both domestic Saudi Arabian corporate groups and international companies with Saudi Arabian subsidiaries, requiring careful consideration of cross-border financing regulations and foreign investment laws.

What sections should be included in a Loan Agreement Between Parent Company And Subsidiary?

1. Parties: Identification of the parent company (as lender) and subsidiary (as borrower), including full legal names and registration details

2. Background: Context of the loan, relationship between parties, and confirmation of Shariah compliance

3. Definitions: Definitions of terms used throughout the agreement, including Islamic finance terminology

4. Facility Details: Amount, purpose, and nature of the loan facility structured in accordance with Shariah principles

5. Conditions Precedent: Conditions that must be satisfied before the loan becomes effective

6. Drawdown Mechanics: Procedures and requirements for accessing the loan funds

7. Repayment Terms: Schedule and mechanisms for repayment, structured to comply with Islamic finance principles

8. Representations and Warranties: Standard and Shariah-specific representations by both parties

9. Covenants: Positive and negative obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Taxes and Zakat: Treatment of taxes, zakat obligations, and related payments

12. Governing Law and Jurisdiction: Application of Saudi law and designation of competent courts

13. Notices: Communication procedures between parties

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Loan Agreement Between Parent Company And Subsidiary?

1. Security: Include when the loan is secured by assets or guarantees

2. Parent Company Undertakings: Additional undertakings when parent company has specific obligations beyond lending

3. Foreign Currency Provisions: Required when loan is not in Saudi Riyals

4. Regulatory Compliance: Additional provisions for compliance with specific regulations, particularly relevant for regulated entities

5. Assignment and Transfer: Include when transfer rights are to be granted

6. Shariah Advisory: Detailed Shariah compliance provisions when required by parties or regulators

7. Group Company Provisions: Additional terms when other group companies are involved in the arrangement

8. Force Majeure: Include when specific force majeure provisions are required beyond standard provisions

What schedules should be included in a Loan Agreement Between Parent Company And Subsidiary?

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

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

3. Form of Drawdown Notice: Template for requesting disbursement of loan funds

4. Repayment Schedule: Detailed schedule of repayment dates and amounts

5. Security Details: Description of any security or collateral (if applicable)

6. Corporate Authorizations: Required corporate approvals and resolutions

7. Shariah Structure Diagram: Visual representation of the Islamic finance structure used

8. Calculation of Profit Rate: Methodology for calculating Shariah-compliant profit

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




























































Clauses











































Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Construction

Energy and Utilities

Technology and Communications

Healthcare

Retail and Consumer Goods

Transportation and Logistics

Mining and Natural Resources

Industrial Conglomerates

Relevant Teams

Legal

Finance

Treasury

Compliance

Tax

Corporate Secretarial

Risk Management

Islamic Finance

Corporate Governance

Internal Audit

Relevant Roles

Chief Financial Officer

Legal Counsel

Finance Director

Corporate Treasurer

Financial Controller

Company Secretary

Compliance Officer

Tax Manager

Shariah Compliance Officer

Corporate Finance Manager

Group Financial Controller

Risk Manager

Treasury Operations Manager

Legal Director

Managing Director

Board Director

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

Find the exact document you need

Loan Agreement Letter

A Sharia-compliant Loan Agreement Letter under Saudi Arabian law that establishes the terms and conditions of a loan while adhering to Islamic finance principles and Saudi banking regulations.

find out more

Agreement To Repay Debt

A Sharia-compliant debt repayment agreement under Saudi Arabian law, documenting debt acknowledgment and repayment terms between creditor and debtor.

find out more

Loan Restructuring Agreement

A Sharia-compliant agreement under Saudi Arabian law that modifies existing loan terms to accommodate changed circumstances while ensuring compliance with Islamic finance principles and local regulations.

find out more

Term Loan Facility Agreement

Saudi Arabian law-governed term loan facility agreement compliant with Shariah principles, detailing lending terms and conditions under Islamic finance structures.

find out more

Simple Mortgage Agreement

A Shariah-compliant mortgage agreement under Saudi Arabian law establishing security interest over real property with associated financing terms and conditions.

find out more

Loan Agreement Between Companies

A Sharia-compliant corporate loan agreement for use between companies in Saudi Arabia, incorporating local legal requirements and Islamic finance principles.

find out more

Loan Repayment Contract

A Sharia-compliant loan repayment agreement under Saudi Arabian law that structures the terms and conditions for loan repayment while ensuring compliance with Islamic financial principles.

find out more

House Loan Contract

A Sharia-compliant house loan contract under Saudi Arabian law, establishing terms for home financing while adhering to Islamic banking principles and local regulations.

find out more

Flexi Finance Loan Agreement

Shariah-compliant flexible financing agreement template for Saudi Arabian jurisdiction, incorporating Islamic banking principles and local regulatory requirements.

find out more

Debt Agreement Contract

A Shariah-compliant debt agreement under Saudi Arabian law establishing terms and conditions for lending arrangements between parties.

find out more

Contract For Land Purchase

A Saudi Arabian law-compliant contract for the purchase and sale of land property, incorporating all necessary terms and conditions under local regulations and Sharia principles.

find out more

Deed Of Assumption Of Mortgage Car

A Saudi Arabian legal document facilitating the transfer of vehicle mortgage obligations between parties while ensuring Sharia compliance.

find out more

Loan Novation Agreement

A Saudi Arabian law-governed agreement that transfers loan obligations between parties while ensuring Shariah compliance.

find out more

Individual To Individual Loan Agreement

A Sharia-compliant individual-to-individual loan agreement template governed by Saudi Arabian law, facilitating private lending arrangements while ensuring compliance with Islamic financial principles.

find out more

Loan Participation Agreement

A Saudi Arabian law-governed agreement establishing rights and obligations in a Sharia-compliant loan participation arrangement between financial institutions.

find out more

Loan Agreement Term Sheet

A Saudi Arabian law-governed term sheet outlining key terms for Shariah-compliant financing arrangements, serving as the basis for detailed facility documentation.

find out more

No Loan Agreement

A Sharia-compliant financial agreement under Saudi Arabian law that structures monetary arrangements without traditional lending elements.

find out more

Mortgage Loan Contract

A Shariah-compliant mortgage loan agreement under Saudi Arabian law, establishing financing terms and property security arrangements in compliance with SAMA regulations.

find out more

Securities Lending Agreement

A Saudi Arabian law-governed agreement establishing terms for securities lending transactions, incorporating CMA regulations and Shariah compliance requirements.

find out more

Money Repayment Agreement

A Sharia-compliant agreement under Saudi Arabian law establishing terms for monetary debt repayment between parties.

find out more

Loan Surety Agreement

A Sharia-compliant guarantee agreement under Saudi Arabian law where a guarantor commits to fulfilling a borrower's obligations to a lender in case of default.

find out more

Loan Reinstatement Agreement

A Sharia-compliant agreement under Saudi Arabian law that reinstates a defaulted loan, establishing new payment terms and conditions between lender and borrower.

find out more

Lending Contract

A Sharia-compliant lending agreement under Saudi Arabian law, establishing terms for financial transactions in accordance with Islamic finance principles and local regulations.

find out more

Lending Agreement

A Sharia-compliant financing agreement under Saudi Arabian law that establishes terms and conditions for lending between parties.

find out more

Lenders Agreement

A Saudi Arabian law-governed financing agreement establishing Shariah-compliant lending terms and conditions between financial institutions and borrowers.

find out more

Lender And Borrower Agreement

A Sharia-compliant financing agreement under Saudi Arabian law establishing terms and conditions between lender and borrower, including profit rates, security, and payment terms.

find out more

Home Loan Agreement

A Sharia-compliant home financing agreement under Saudi Arabian law, detailing terms, conditions, and security arrangements for property purchase financing.

find out more

Finance Agreement

A Sharia-compliant financing agreement under Saudi Arabian law establishing terms for Islamic financing arrangements and regulatory compliance.

find out more

Forbearance Agreement Commercial Loan

A Shariah-compliant agreement under Saudi Arabian law that temporarily suspends a lender's enforcement rights against a defaulting commercial borrower while establishing new compliance terms.

find out more

Education Loan Agreement

A Sharia-compliant Education Loan Agreement under Saudi Arabian law, establishing terms for educational financing between a financial institution and student borrower.

find out more

Debt Agreement Letter

A Sharia-compliant Debt Agreement Letter under Saudi Arabian law that documents debt obligations and repayment terms between parties.

find out more

Credit Agreement Contract

A Shariah-compliant credit agreement under Saudi Arabian law establishing terms for credit facilities between lender and borrower.

find out more

Contract Of Loan With Real Estate Mortgage

A Sharia-compliant loan agreement secured by real estate mortgage under Saudi Arabian law, combining financing terms with property security arrangements.

find out more

Assumption Of Mortgage Form

A Saudi Arabian legal document that transfers mortgage obligations from an existing borrower to a new party, compliant with local laws and Sharia principles.

find out more

Mortgage Note Purchase Agreement

A Sharia-compliant agreement for the purchase and sale of mortgage notes in Saudi Arabia, conforming to Saudi banking regulations and Islamic finance principles.

find out more

Personal Loan Agreement With Notary

A notarized personal loan agreement under Saudi Arabian law, establishing Sharia-compliant terms between a lender and borrower with official authentication.

find out more

Loan Against Rent Agreement

A Saudi Arabian Shariah-compliant agreement facilitating property owner financing secured against rental income streams.

find out more

Credit Agreement Between Two Parties

A Shariah-compliant credit agreement under Saudi Arabian law establishing terms for credit extension between two parties.

find out more

Installment Loan Contract

A Sharia-compliant installment loan agreement under Saudi Arabian law, establishing terms for financing and repayment in accordance with Islamic principles and Saudi banking regulations.

find out more

Agreement For Mortgage Of Property

A Sharia-compliant property mortgage agreement under Saudi Arabian law, establishing security interest over real property while adhering to Islamic finance principles and local regulations.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it