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Security Assignment Agreement
"I need a Security Assignment Agreement under Saudi law for assigning receivables from our solar power project as security for a Murabaha facility worth 50 million SAR, with the agreement to be effective from March 1, 2025."
1. Parties: Identification of the Assignor, Assignee, and any other relevant parties to the agreement
2. Background: Context of the security assignment, including reference to any underlying obligations or facilities being secured
3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Sharia-compliant terminology
4. Assignment: Core provisions detailing the rights and assets being assigned as security
5. Security Interest: Creation and nature of the security interest, ensuring Sharia compliance
6. Perfection Requirements: Steps required to perfect the security interest under Saudi law, including registration requirements
7. Representations and Warranties: Assignor's representations regarding ownership, authority, and compliance with Sharia and Saudi law
8. Covenants: Ongoing obligations of the Assignor regarding the assigned rights and maintenance of the security
9. Events of Default: Circumstances constituting default and consequences thereof
10. Enforcement: Rights and remedies of the Assignee upon default, compliant with Saudi enforcement regulations
11. Payments and Receipts: Handling of payments and proceeds from assigned rights
12. Duration and Release: Term of the security and conditions for release
13. Governing Law and Jurisdiction: Confirmation of Saudi law governance and jurisdiction of Saudi courts
1. Further Assurance: Additional actions parties may need to take to perfect or maintain the security - include if complex assets are involved
2. Power of Attorney: Appointment of the Assignee as attorney for specific enforcement actions - include if enforcement might require Assignor cooperation
3. Tax Provisions: Handling of tax implications - include if tax exposure exists
4. Currency Provisions: Provisions for dealing with multiple currencies - include if international elements exist
5. Communications: Detailed notice provisions - include if complex operational arrangements exist
6. Costs and Expenses: Allocation of costs - include if significant costs anticipated
7. Successors and Assigns: Provisions regarding transfer of rights - include if assignment rights are important
1. Schedule 1 - Assigned Rights: Detailed description of the rights, receivables, or assets being assigned as security
2. Schedule 2 - Form of Notice: Template notices to be sent to relevant third parties regarding the assignment
3. Schedule 3 - Perfection Requirements: Detailed list of actions required to perfect the security interest
4. Schedule 4 - Contract Particulars: Details of underlying contracts or agreements related to the assigned rights
5. Schedule 5 - Registration Requirements: Specific registration requirements under Saudi law
6. Appendix A - Required Documents: List of documents required for perfection and registration
7. Appendix B - Form of Release: Template for release of security upon satisfaction of secured obligations
Authors
Banking & Finance
Real Estate
Construction
Manufacturing
Energy & Resources
Infrastructure
Telecommunications
Healthcare
Retail
Transportation & Logistics
Technology
Islamic Finance
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretariat
Islamic Banking
Commercial
Credit
Security Administration
Contracts Management
Transaction Management
Legal Counsel
Finance Director
Chief Financial Officer
Treasury Manager
Risk Manager
Compliance Officer
Corporate Secretary
Islamic Finance Specialist
Commercial Director
Credit Manager
Security Trustee
Contract Administrator
Transaction Manager
Legal Director
Sharia Compliance Officer
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