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Debt Purchase Agreement
"I need a Debt Purchase Agreement for acquiring a portfolio of corporate loans from a Saudi bank, with completion scheduled for March 2025; the agreement needs to include specific provisions for Shariah compliance and SAMA approval requirements."
1. Parties: Identification of the seller and purchaser of the debt
2. Background: Context of the transaction and description of the debt portfolio being sold
3. Definitions: Key terms used throughout the agreement including defined terms for debt, purchase price, completion date, etc.
4. Sale and Purchase: Core transaction terms including the agreement to sell and purchase the debt
5. Purchase Price: Details of the purchase consideration and payment mechanics
6. Completion: Completion mechanics, timing, and deliverables
7. Seller's Warranties: Warranties regarding the debt, seller's authority, and compliance with laws
8. Purchaser's Warranties: Warranties regarding purchaser's authority and capacity
9. Pre-Completion Obligations: Obligations of both parties between signing and completion
10. Post-Completion Obligations: Ongoing obligations after completion including document handover
11. Shariah Compliance: Specific provisions ensuring compliance with Islamic finance principles
12. Confidentiality: Provisions regarding confidential information and its protection
13. Notices: Process for serving notices under the agreement
14. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction provisions
1. Third Party Rights: Section addressing rights of third parties, used when there are potential third-party beneficiaries
2. Data Protection: Specific provisions regarding personal data handling, required when dealing with consumer debt
3. Regulatory Compliance: Additional regulatory provisions, needed when dealing with regulated debt
4. Anti-Money Laundering: Specific AML provisions, required for high-value transactions
5. Force Majeure: Provisions dealing with external events, optional but recommended
6. Assignment: Rights to assign the agreement, included when assignment rights are required
7. Costs: Allocation of transaction costs, included when cost sharing differs from market standard
1. Schedule 1 - The Debt: Detailed description and identification of the debt being purchased
2. Schedule 2 - Completion Requirements: List of documents and actions required for completion
3. Schedule 3 - Form of Transfer Instruments: Template transfer documents required under Saudi law
4. Schedule 4 - Seller's Warranties: Detailed warranties given by the seller
5. Schedule 5 - Power of Attorney: Form of power of attorney for post-completion actions
6. Appendix A - Debt Documentation: List of all documentation relating to the debt
7. Appendix B - Shariah Opinion: Shariah scholar opinion confirming compliance with Islamic principles
Authors
Banking
Financial Services
Investment Management
Debt Collection
Asset Management
Islamic Finance
Corporate Finance
Private Equity
Credit Management
Financial Technology
Legal
Finance
Risk Management
Compliance
Shariah Advisory
Investment
Treasury
Credit Management
Corporate Finance
Portfolio Management
Chief Financial Officer
Legal Counsel
Finance Manager
Investment Manager
Risk Manager
Compliance Officer
Shariah Compliance Manager
Portfolio Manager
Credit Manager
Treasury Manager
Investment Director
Debt Collection Manager
Corporate Finance Director
Legal Director
Chief Investment Officer
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