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Account Receivable Purchase Agreement
"I need an Account Receivable Purchase Agreement for a Saudi manufacturing company selling receivables in both SAR and USD, with a maximum facility amount of SAR 100 million, including provisions for electronic invoicing and assignment notifications."
1. Parties: Identification of the Purchaser and Seller, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, nature of the receivables, and basic commercial understanding between parties
3. Definitions: Definitions of key terms including Receivables, Purchase Price, Cut-off Date, and other relevant terminology
4. Purchase and Sale: Core provisions regarding the sale and purchase of receivables, including Sharia-compliant pricing mechanism
5. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective
6. Representations and Warranties: Seller's representations regarding ownership, validity, and status of receivables
7. Covenants: Ongoing obligations of the parties, including information provision and maintaining records
8. Collection and Administration: Provisions regarding collection of receivables and administrative responsibilities
9. Events of Default: Circumstances constituting default and consequences thereof
10. Termination: Provisions for termination of the agreement and post-termination procedures
11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes
1. Security: Additional security arrangements if required for the transaction
2. Multiple Seller Provisions: Required when there are multiple sellers of receivables
3. Islamic Structure: Detailed Sharia structure section when specific Islamic finance arrangements need to be documented
4. Data Protection: Specific provisions regarding handling of customer data when sensitive information is involved
5. Currency Provisions: Required when receivables are in multiple currencies
6. Electronic Systems: Provisions regarding use of electronic platforms for receivables management when applicable
1. Schedule 1 - Eligibility Criteria: Detailed criteria for receivables to be eligible for purchase
2. Schedule 2 - Form of Transfer Notice: Standard form for notifying transfer of receivables
3. Schedule 3 - Calculation of Purchase Price: Detailed methodology for calculating Sharia-compliant purchase price
4. Schedule 4 - Operational Procedures: Day-to-day procedures for identifying and transferring receivables
5. Schedule 5 - Form of Reports: Templates for required reporting
6. Schedule 6 - Approved Debtor List: List of approved debtors whose receivables may be purchased
7. Appendix A - Required Documents: List of documents required for each receivable purchase
8. Appendix B - Sharia Approvals: Copies of relevant Sharia board approvals and certificates
Authors
Approved Debtor
Business Day
Collection Account
Cut-off Date
Debtor
Default Rate
Dilution
Discount Rate
Due Date
Eligible Receivable
Encumbrance
Event of Default
Face Value
Financial Statements
Governing Law
Indebtedness
Invoice
Material Adverse Effect
Notification of Assignment
Obligor
Offer Notice
Purchase Date
Purchase Price
Purchased Receivable
Receivable
Receivables Schedule
Related Rights
SAMA
SAR
Sharia Board
Sharia Principles
Spot Rate
Transfer Notice
True Sale
USD
VAT
Wakala
Zakat
Sale and Purchase
Sharia Compliance
Purchase Price
Conditions Precedent
Eligibility Criteria
Representations and Warranties
Covenants
Collection Rights
Payment Mechanics
Security
Information Undertakings
Events of Default
Remedies
Set-off
Assignment and Transfer
Confidentiality
Data Protection
Notices
Amendments
Severability
Force Majeure
Entire Agreement
Counterparts
Further Assurance
Costs and Expenses
Termination
Governing Law
Dispute Resolution
Waiver of Interest
Language
Banking and Financial Services
Manufacturing
Retail
Construction
Healthcare
Technology
Telecommunications
Energy
Trading and Distribution
Professional Services
Legal
Finance
Treasury
Credit Risk
Operations
Compliance
Accounts Receivable
Commercial
Business Development
Islamic Banking
Chief Financial Officer
Treasury Manager
Finance Director
Legal Counsel
Sharia Compliance Officer
Credit Risk Manager
Accounts Receivable Manager
Commercial Director
Business Development Manager
Operations Manager
Contract Manager
Financial Controller
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