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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."
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
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
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
Banking & Financial Services
Islamic Finance
Commercial Real Estate
Manufacturing
Trading & Commerce
Construction & Infrastructure
Healthcare
Education
Telecommunications
Energy & Utilities
Transportation & Logistics
Legal
Finance
Treasury
Compliance
Risk Management
Credit Administration
Corporate Banking
Islamic Banking
Portfolio Management
Debt Recovery
Corporate Finance
Investment
Operations
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
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