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Loan Transfer Agreement
"I need a Loan Transfer Agreement for transferring a Sharia-compliant commercial loan from Al Rajhi Bank to Arab National Bank, with a transfer value of 5 million SAR, to be completed by March 2025."
1. Parties: Identification of the Transferor (existing lender), Transferee (new lender), and Borrower
2. Background: Context of the original loan agreement and the reason for the transfer
3. Definitions: Key terms used throughout the agreement, including Sharia-compliant financial terms
4. Transfer and Assignment: Core provisions detailing the transfer of rights and obligations from Transferor to Transferee
5. Purchase Price and Payment: Details of the consideration for the transfer, structured in compliance with Sharia principles
6. Effective Date: Specification of when the transfer becomes effective
7. Representations and Warranties: Statements of fact and assurances from both Transferor and Transferee
8. Sharia Compliance: Declarations and provisions ensuring the transfer complies with Islamic banking principles
9. Regulatory Compliance: Provisions ensuring compliance with Saudi banking regulations and SAMA requirements
10. Notices: Communication procedures between parties
11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction of Saudi courts
12. Execution: Signature blocks and execution requirements
1. Security Transfer: Required when the transfer includes associated security interests or collateral
2. Borrower Consent: Include when borrower's explicit consent is required for the transfer
3. Agent Provisions: Required in syndicated loans where a facility agent is involved
4. Tax Provisions: Include when there are specific tax implications requiring detailed treatment
5. Partial Transfer Provisions: Required when only a portion of the loan is being transferred
6. Confidentiality: Detailed confidentiality provisions when dealing with sensitive commercial information
7. Further Assurance: Additional provisions for future actions needed to perfect the transfer
8. Electronic Execution: Include when parties agree to electronic signature and documentation
1. Schedule 1 - Original Loan Agreement: Copy or details of the original loan agreement being transferred
2. Schedule 2 - Transfer Details: Specific details of the loan being transferred, including amount, payment terms, and profit rates
3. Schedule 3 - Existing Security: Details of any security interests or collateral associated with the loan
4. Schedule 4 - Form of Transfer Certificate: Standard form for documenting the transfer, including all required regulatory information
5. Schedule 5 - Outstanding Amounts: Detailed breakdown of outstanding principal, profit, and other amounts
6. Schedule 6 - Required Consents: List of required regulatory and third-party consents
7. Appendix A - Compliance Checklist: Checklist ensuring compliance with Sharia and regulatory requirements
8. Appendix B - Supporting Documents: List and copies of all required supporting documentation
Authors
Banking
Financial Services
Islamic Finance
Commercial Real Estate
Infrastructure
Energy
Manufacturing
Healthcare
Telecommunications
Construction
Transportation
Legal
Finance
Treasury
Credit Risk
Compliance
Islamic Banking
Corporate Banking
Documentation
Operations
Portfolio Management
Transaction Management
Risk Management
Chief Financial Officer
Finance Director
Legal Counsel
Sharia Compliance Officer
Banking Relationship Manager
Credit Risk Manager
Treasury Manager
Loan Officer
Corporate Finance Manager
Investment Manager
Portfolio Manager
Compliance Officer
Banking Operations Manager
Transaction Manager
Documentation Specialist
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