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Credit Assignment Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Credit Assignment Agreement

"I need a Credit Assignment Agreement for transferring a corporate loan portfolio worth SAR 50 million from Al Rajhi Bank to Saudi National Bank, with the transfer to be completed by March 15, 2025, ensuring full Shariah compliance and including provisions for existing security arrangements."

Document background
The Credit Assignment Agreement is essential in Saudi Arabian financial and commercial transactions where one party wishes to transfer its credit rights to another. This document is commonly used in debt trading, portfolio sales, corporate restructuring, and financial institution arrangements. The agreement must be structured to comply with Saudi Arabian law, particularly the Banking Control Law and Islamic finance principles. It includes comprehensive details about the assigned credit, payment terms, transfer mechanics, and any security arrangements. The document becomes necessary when businesses need to transfer receivables, banks want to sell loan portfolios, or in situations requiring debt restructuring. Its importance is heightened by Saudi Arabia's unique legal framework, which requires careful consideration of both commercial and Shariah law principles.
Suggested Sections

1. Parties: Identification of the Assignor, Assignee, and any other relevant parties to the agreement

2. Background: Context of the assignment, including details of the original credit arrangement and reason for assignment

3. Definitions and Interpretation: Key terms used in the agreement and rules of interpretation

4. Assignment: Core provisions detailing the transfer of rights, obligations, and credit from Assignor to Assignee

5. Consideration: Details of the payment or consideration for the assignment, structured in compliance with Shariah principles

6. Effective Date and Completion: Timing of the assignment and conditions for completion

7. Representations and Warranties: Statements of fact and assurances from both Assignor and Assignee

8. Shariah Compliance: Specific provisions ensuring the assignment complies with Islamic finance principles

9. Notices: Procedure for serving notices between parties

10. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes

11. Language: Specification of controlling language version of the agreement

Optional Sections

1. Security Arrangements: Details of any security or collateral arrangements, used when the assigned credit is secured

2. Third Party Consents: Requirements for obtaining consents from other parties, included when original agreement requires consent for assignment

3. Tax Provisions: Specific tax-related provisions, included when tax implications need to be addressed

4. Further Assurance: Obligations to take additional steps to perfect the assignment, included in complex transactions

5. Costs and Expenses: Allocation of transaction costs, included when significant costs are anticipated

6. Confidentiality: Provisions regarding confidential information, included when sensitive information is involved

7. Anti-Money Laundering Compliance: Specific AML provisions, included for high-value transactions or when required by regulations

8. Force Majeure: Provisions for unforeseen circumstances, included when long-term obligations exist

Suggested Schedules

1. Schedule 1 - Details of Assigned Credit: Detailed description of the credit being assigned, including payment terms and outstanding amounts

2. Schedule 2 - Copy of Original Credit Agreement: Copy of the underlying credit agreement being assigned

3. Schedule 3 - Form of Notice to Debtor: Template for notifying the debtor of the assignment

4. Schedule 4 - Completion Requirements: List of documents and actions required for completion

5. Schedule 5 - Form of Transfer Certificate: Template for documenting the transfer of credit

6. Appendix A - Required Consents: List of required third-party consents and their status

7. Appendix B - Security Documents: Copies or details of any security documents related to the assigned credit

Authors

Alex Denne

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

Relevant legal definitions




































Clauses






























Relevant Industries

Banking & Financial Services

Islamic Finance

Commercial Real Estate

Manufacturing

Trading & Commerce

Construction & Infrastructure

Healthcare

Education

Telecommunications

Energy & Utilities

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Administration

Corporate Banking

Islamic Banking

Portfolio Management

Debt Recovery

Corporate Finance

Investment

Operations

Relevant Roles

Legal Counsel

Finance Director

Credit Manager

Treasury Manager

Compliance Officer

Risk Manager

Chief Financial Officer

Banking Relationship Manager

Shariah Compliance Officer

Portfolio Manager

Debt Recovery Specialist

Corporate Finance Manager

Investment Manager

Senior Legal Advisor

Financial Controller

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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