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Loan And Security Agreement
"I need a Loan and Security Agreement under Saudi law for a SAR 50 million facility to a manufacturing company, with security over machinery and receivables, to be executed by March 2025."
1. Parties: Identification of the lender and borrower, including full legal names and addresses
2. Background: Context of the loan arrangement and purpose of the facility
3. Definitions: Key terms used throughout the agreement, including Islamic finance terminology
4. Facility Terms: Details of the loan amount, profit rate (instead of interest), payment terms, and maturity
5. Security Creation: Establishment of security interests over specified assets
6. Conditions Precedent: Requirements to be satisfied before loan disbursement
7. Representations and Warranties: Statements of fact by the borrower regarding their legal and financial status
8. Covenants: Positive and negative obligations of the borrower during the loan term
9. Events of Default: Circumstances that trigger default and remedies available to the lender
10. Security Enforcement: Procedures for enforcing security interests under Saudi law
11. Payments and Calculations: Payment mechanics, profit calculations, and payment priorities
12. Changes to Parties: Rules regarding assignment and transfer of rights
13. Administration: Notice requirements, amendments, and other administrative provisions
14. Governing Law and Jurisdiction: Confirmation of Saudi law governance and dispute resolution mechanisms
1. Islamic Structure Provisions: Required when using specific Islamic financing structures like Murabaha or Ijara
2. Guarantees: Include when third-party guarantees are part of the security package
3. Intercreditor Provisions: Required when multiple lenders or ranking of security is involved
4. Agency Provisions: Include when a security agent or facility agent is appointed
5. Additional Security Rights: Include when specific types of assets require special security provisions
6. Tax Provisions: Detailed tax provisions when cross-border elements exist
7. Currency Provisions: Required when dealing with multiple currencies
1. Facility Terms Schedule: Detailed terms of the facility including profit rates and payment dates
2. Security Assets Schedule: Detailed description of all assets subject to security interests
3. Conditions Precedent Schedule: List of all required documents and conditions
4. Form of Request: Standard form for drawdown requests
5. Form of Compliance Certificate: Template for periodic compliance certification
6. Security Documents: Forms of specific security documents required under Saudi law
7. Shareholders Schedule: List of shareholders if relevant to security structure
8. Calculation Schedule: Detailed profit and payment calculations
9. Form of Transfer Certificate: Standard form for transfer of rights under the agreement
Authors
Banking and Financial Services
Real Estate and Construction
Manufacturing and Industrial
Energy and Resources
Healthcare
Technology and Communications
Transport and Logistics
Retail and Consumer Goods
Agriculture and Food Production
Infrastructure Development
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Banking
Credit Analysis
Security and Documentation
Shariah Advisory
Operations
Chief Financial Officer
Legal Counsel
Finance Director
Treasury Manager
Credit Risk Manager
Compliance Officer
Shariah Compliance Manager
Security Documentation Officer
Relationship Manager
Corporate Banking Manager
Risk Assessment Officer
Financial Controller
Corporate Finance Manager
Banking Operations Manager
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