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Debt Purchase Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Debt Purchase Agreement is a crucial document used in the Saudi Arabian financial sector when one entity wishes to transfer debt obligations to another. It is specifically designed to comply with both Saudi civil law and Islamic finance principles, making it suitable for debt trading in the Kingdom. This agreement is commonly used in scenarios such as portfolio sales, debt restructuring, or strategic debt acquisitions. The document covers essential elements including debt identification, purchase price mechanics, transfer procedures, and necessary warranties, while ensuring adherence to Shariah principles and SAMA regulations. It's particularly important in the context of Saudi Arabia's developing secondary debt market and must incorporate specific local legal requirements and Islamic finance structures.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions



































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Relevant Industries

Banking

Financial Services

Investment Management

Debt Collection

Asset Management

Islamic Finance

Corporate Finance

Private Equity

Credit Management

Financial Technology

Relevant Teams

Legal

Finance

Risk Management

Compliance

Shariah Advisory

Investment

Treasury

Credit Management

Corporate Finance

Portfolio Management

Relevant Roles

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

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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