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Loan Purchase Agreement
"I need a Loan Purchase Agreement for Al Rajhi Bank to purchase a portfolio of corporate real estate loans worth SAR 500 million from Saudi National Bank, with completion planned for March 2025, including ongoing servicing arrangements and SAMA approval requirements."
1. Parties: Identification of the Seller and Purchaser, including full legal names and registration details
2. Background: Context of the transaction, nature of the loan portfolio, and confirmation of Sharia compliance
3. Definitions and Interpretation: Key terms used in the agreement, including specific Saudi banking and financial terms
4. Sale and Purchase: Core transaction terms, purchase price, and payment mechanics
5. Conditions Precedent: Required approvals, documents, and conditions before completion
6. Completion: Mechanics and timing of the transfer, including required registrations and notices
7. Seller's Representations and Warranties: Statements about the loan portfolio, Sharia compliance, and seller's authority
8. Purchaser's Representations and Warranties: Statements about purchaser's authority and capacity to complete the transaction
9. Covenants: Ongoing obligations of both parties, including regulatory compliance
10. Transfer Mechanics: Detailed process for transferring the loans, including documentation requirements
11. Indemnities: Protection mechanisms for breach of warranties or undisclosed issues
12. Confidentiality: Provisions for maintaining confidentiality of transaction and customer information
13. Notices: Communication procedures between parties
14. Governing Law and Jurisdiction: Confirmation of Saudi law governance and dispute resolution mechanisms
1. Servicing Arrangements: Required if the seller will continue to service the loans post-transfer
2. Consumer Protection Provisions: Required if the loan portfolio includes consumer loans
3. Foreign Investment Provisions: Required if any party is a foreign entity
4. Sharia Board Approval: Detailed section about Sharia compliance if required by either party
5. SAMA Compliance: Specific section addressing Saudi Arabian Monetary Authority requirements if particularly complex
6. Data Protection: Detailed provisions if significant personal data is involved
7. Currency Provisions: Required if any loans or payments involve foreign currency
8. Tax Provisions: Detailed tax treatment if complex tax implications exist
1. Schedule 1 - The Loans: Detailed list and characteristics of loans being purchased
2. Schedule 2 - Form of Transfer Documents: Templates for transfer documentation required under Saudi law
3. Schedule 3 - Completion Requirements: Detailed checklist of completion deliverables
4. Schedule 4 - Seller's Power of Attorney: Form of power of attorney for executing transfer documents
5. Schedule 5 - Form of Notices: Template notices to borrowers regarding the transfer
6. Schedule 6 - Excluded Rights: Any rights or obligations excluded from the transfer
7. Schedule 7 - Sharia Structure: Detailed explanation of Islamic finance structure used
8. Appendix A - Required Regulatory Approvals: List of required regulatory approvals and status
9. Appendix B - Due Diligence Findings: Summary of key due diligence findings and resolutions
Authors
Applicable Law
Assignment Date
Business Day
Completion
Completion Date
Confidential Information
Cut-off Date
Default Interest
Effective Date
Encumbrance
Event of Default
Excluded Rights
Finance Documents
Financial Indebtedness
Governmental Authority
Islamic Finance Structure
Loan Agreement
Loan Documents
Loans
Material Adverse Effect
Murabaha
Outstanding Principal
Payment Date
Portfolio
Purchase Price
Purchaser
Related Rights
Relevant Period
SAMA
SAMA Approval
Security
Security Interest
Seller
Sharia Board
Sharia Compliance Certificate
Tawarruq
Transfer Documents
Transfer Notice
Warranties
Working Day
Zakat
Ijara
Obligor
Profit Rate
Purchase Undertaking
Sale Undertaking
Saudi Business Day
Service Level Requirements
Signing Date
Transaction Documents
Purchase Price
Payment Terms
Conditions Precedent
Completion
Representations and Warranties
Sharia Compliance
Transfer Mechanics
Security Assignment
Regulatory Compliance
Servicing Arrangements
Covenants
Further Assurance
Confidentiality
Data Protection
Anti-Money Laundering
Indemnification
Force Majeure
Assignment and Transfer
Notices
Amendment and Waiver
Severability
Entire Agreement
Counterparts
Third Party Rights
Costs and Expenses
Interest Provisions
Default
Termination
Dispute Resolution
Governing Law
Jurisdiction
Language
Islamic Finance Structure
SAMA Compliance
Foreign Investment
Consumer Protection
Tax Provisions
Currency Provisions
Banking
Financial Services
Islamic Finance
Asset Management
Investment Banking
Corporate Banking
Consumer Banking
Debt Trading
Financial Technology
Credit Services
Legal
Finance
Compliance
Risk Management
Islamic Banking
Treasury
Credit
Corporate Finance
Due Diligence
Portfolio Management
Investment
Operations
Regulatory Affairs
Chief Financial Officer
Head of Legal
Islamic Finance Specialist
Compliance Officer
Risk Manager
Portfolio Manager
Treasury Manager
Senior Legal Counsel
Sharia Compliance Officer
Investment Manager
Director of Banking
Head of Credit
Corporate Finance Manager
Due Diligence Manager
Transaction Manager
Chief Risk Officer
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