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The Car Loan Agreement is essential for vehicle financing transactions in Saudi Arabia, where all financial products must comply with Islamic law principles. This document is used when a customer seeks to purchase a vehicle through financing from a bank or financial institution. The agreement is structured as a Murabaha transaction, where the bank purchases the vehicle and sells it to the customer at a marked-up price payable in installments. The document includes comprehensive details about the vehicle, payment terms, security arrangements, and parties' obligations, all while ensuring compliance with Saudi Arabian banking regulations, SAMA guidelines, and Sharia requirements. It's particularly important in protecting both the financial institution's security interest in the vehicle and the customer's rights under Saudi consumer protection laws.

1. Parties: Identifies the Finance Provider (the Bank/Financial Institution) and the Customer (the Purchaser)

2. Background: Explains the context of the agreement, including the Customer's request for vehicle financing and the Bank's agreement to provide Sharia-compliant financing

3. Definitions: Defines key terms used throughout the agreement, including 'Vehicle', 'Purchase Price', 'Profit Rate', 'Payment Schedule', etc.

4. Purchase and Sale Structure: Details the Murabaha structure, including the Bank's purchase and subsequent sale of the vehicle to the Customer

5. Financial Terms: Specifies the vehicle cost, profit margin, total amount payable, and payment schedule

6. Payment Obligations: Details the Customer's payment obligations, including installment amounts, payment dates, and payment methods

7. Vehicle Details and Ownership: Specifies vehicle information and ownership transfer conditions

8. Security and Registration: Outlines the security interests, vehicle registration requirements, and mortgage registration

9. Insurance Requirements: Specifies mandatory insurance coverage and related obligations

10. Customer Representations and Warranties: Lists the Customer's confirmations regarding their ability to enter into and perform the agreement

11. Events of Default: Defines circumstances constituting default and their consequences

12. Bank's Rights and Remedies: Details the Bank's rights in case of default or breach

13. Governing Law and Jurisdiction: Specifies Saudi law as governing law and relevant courts' jurisdiction

14. Execution: Signature blocks and execution formalities