������Ƶ

The Refinance Agreement is utilized when parties wish to modify, restructure, or replace an existing financing arrangement in Saudi Arabia. It becomes necessary when a borrower seeks to take advantage of more favorable market conditions, requires additional funding, or needs to adjust payment terms. The document must carefully balance conventional refinancing principles with strict Sharia law compliance requirements, as Saudi Arabia operates under Islamic law. The agreement typically includes detailed provisions about the treatment of the existing facility, new profit rate calculations (replacing conventional interest), security arrangements, and compliance with SAMA (Saudi Arabian Monetary Authority) regulations. It's particularly important that the document maintains the enforceability of existing security while incorporating any new requirements or additional security arrangements under the refinanced facility.

1. Parties: Identification of the financial institution(s) and borrower(s), including their full legal names and addresses

2. Background: Details of the existing facility being refinanced, including original facility date, amount, and reason for refinancing

3. Definitions and Interpretation: Key terms used throughout the agreement, including Sharia-compliant financing terminology

4. Refinancing Terms: Core terms of the new facility, including amount, profit rate (not interest), and payment structure in compliance with Sharia principles

5. Conditions Precedent: Prerequisites for the refinancing to become effective, including documentation and Sharia compliance requirements

6. Representations and Warranties: Statements of fact and assurances from the borrower regarding their legal and financial status

7. Covenants: Ongoing obligations of the borrower, including financial covenants and reporting requirements

8. Events of Default: Circumstances that would trigger default and remedies available to the lender

9. Security Continuation: Provisions ensuring existing security remains effective for the refinanced facility

10. Payments and Calculations: Payment mechanics, calculation methods, and business day conventions

11. Changes to Parties: Rules for assignment and transfer of rights and obligations

12. Notices: Communication procedures between parties

13. Governing Law and Jurisdiction: Saudi Arabian law as governing law and jurisdiction provisions