Document background
The Omnibus Loan And Security Agreement is designed for complex financing arrangements in Saudi Arabia where multiple credit facilities and various forms of security are required under a single documentation framework. This agreement type is particularly useful for ongoing banking relationships where a borrower may need access to different types of facilities (such as term loans, revolving credits, or Islamic facilities) over time, while maintaining a consolidated security structure. The document must comply with Saudi Arabian law, including various Royal Decrees governing banking and security interests, while also adhering to Shariah principles. It includes comprehensive provisions for facility utilization, security creation over different types of assets, covenant packages, and enforcement mechanisms. The agreement is typically used for corporate borrowers requiring flexible financing arrangements and can accommodate both conventional and Islamic financing structures, making it a versatile instrument in the Saudi Arabian banking sector.
