Revolving Credit Promissory Note Template for Saudi Arabia

The Revolving Credit Promissory Note is commonly used in Saudi Arabian financial transactions where a borrower requires flexible access to credit while providing the lender with a legally enforceable debt instrument. This document is particularly useful in commercial financing where businesses need ongoing access to funds with the ability to draw down and repay multiple times within a maximum facility amount. The document must comply with Saudi Arabian law, including SAMA regulations and the Commercial Papers Regulation, while adhering to Shariah principles that prohibit conventional interest. It includes specific provisions for the revolving nature of the facility, profit calculation methodologies, drawdown mechanisms, and enforcement procedures. This type of document is essential for businesses seeking Shariah-compliant working capital financing or revolving credit facilities from Saudi Arabian banks or financial institutions.

1. Parties: Identification of the maker (borrower) and the beneficiary (lender), including full legal names, commercial registration numbers, and authorized signatories

2. Unconditional Promise to Pay: Clear statement of the unconditional promise to pay, including the maximum facility amount and the revolving nature of the credit

3. Payment Terms: Specification of payment terms, including the profit rate (structured in Shariah-compliant manner), payment dates, and calculation methodology

4. Revolving Facility Mechanics: Details of how the revolving facility works, including drawdown and repayment mechanisms

5. Events of Default: Circumstances under which the entire amount becomes immediately due and payable

6. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and relevant Saudi courts for dispute resolution

7. Shariah Compliance Declaration: Statement confirming the agreement's compliance with Shariah principles

8. Notice Provisions: Methods and addresses for serving notices between parties