Document background
The Partial Recourse Promissory Note is commonly used in Saudi Arabian commercial and Islamic banking transactions where parties seek to document a payment obligation while limiting the payee's recourse rights under specific circumstances. This instrument combines features of conventional promissory notes with Islamic finance principles, making it particularly useful in Sharia-compliant financing structures. The document is governed by Saudi Arabian law, specifically the Commercial Papers Law and Islamic banking regulations, and typically includes details of payment obligations, recourse limitations, and enforcement mechanisms. It's frequently used in project financing, trade finance, and corporate lending transactions where partial risk allocation is desired.
