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The Non-Recourse Promissory Note is commonly used in Saudi Arabian financial transactions where lenders agree to limit their recovery rights exclusively to specific collateral assets. This document is particularly relevant in project finance, real estate development, and asset-backed financing scenarios where the financing structure needs to isolate specific assets. The note must be drafted in compliance with Saudi Arabian law, including the Banking Control Law and Shariah principles, making it suitable for Islamic finance transactions. It contains specific provisions detailing the promise to pay, collateral description, payment terms, and enforcement mechanisms. The non-recourse nature means that in the event of default, the lender can only seek recovery from the specified collateral and cannot pursue the borrower's other assets or personal wealth.

1. Date and Place of Execution: Specifies the date and location where the promissory note is executed

2. Parties: Identifies the maker (issuer) and the payee of the promissory note

3. Promise to Pay: Clear and unconditional promise to pay a specific sum, including the currency and payment date

4. Non-Recourse Provision: Explicit statement limiting the lender's recourse solely to the specified collateral

5. Collateral Description: Detailed description of the asset(s) serving as collateral for the note

6. Payment Terms: Specifics of payment including method, location, and any installment arrangements

7. Shariah Compliance Statement: Declaration of compliance with Islamic finance principles

8. Events of Default: Circumstances under which the note becomes immediately due and payable

9. Governing Law: Statement that the note is governed by Saudi Arabian law

10. Execution: Signature blocks and witness requirements