Ƶ

Collateral Contract for Saudi Arabia

Collateral Contract Template for Saudi Arabia

A comprehensive legal document governed by Saudi Arabian law that establishes and details a security interest over specific assets as collateral for an underlying obligation. The document incorporates both conventional commercial principles and Sharia-compliant elements, ensuring compliance with Islamic law requirements while providing effective security arrangements. It includes detailed provisions for the creation, perfection, and enforcement of security interests, along with specific requirements for registration, maintenance, and eventual release of the collateral, all within the framework of Saudi Arabian commercial and Islamic legal systems.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Collateral Contract

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Collateral Contract?

The Collateral Contract serves as a crucial legal instrument in Saudi Arabian commercial transactions, providing security for various types of obligations while ensuring compliance with both Sharia principles and Saudi commercial laws. This document is typically used when parties need to establish a security interest over specific assets to secure financial or commercial obligations. It contains detailed provisions regarding the creation, perfection, and enforcement of security interests, including specific requirements under Saudi law for registration and execution. The document is particularly important in the context of Islamic finance transactions, where conventional security arrangements must be modified to comply with Sharia principles. The Collateral Contract must address specific Saudi Arabian regulatory requirements, including those imposed by SAMA (Saudi Central Bank) and other relevant authorities, while also incorporating necessary Sharia-compliant structures and mechanisms.

What sections should be included in a Collateral Contract?

1. Parties: Identification of the parties entering into the collateral agreement, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including reference to the primary obligation being secured

3. Definitions: Definitions of key terms used throughout the agreement

4. Collateral Description: Detailed description of the assets being provided as collateral, including any specific identifying information

5. Grant of Security Interest: Express creation and grant of the security interest over the collateral, compliant with Sharia principles

6. Representations and Warranties: Statements of fact by the collateral provider regarding ownership, condition, and status of the collateral

7. Covenants: Ongoing obligations of the collateral provider regarding maintenance, insurance, and preservation of the collateral

8. Events of Default: Circumstances that constitute default and trigger enforcement rights

9. Enforcement Rights: Rights and remedies available upon default, including process for liquidation of collateral in accordance with Saudi law

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

What sections are optional to include in a Collateral Contract?

1. Custody Arrangements: Required when collateral is to be held by a third-party custodian

2. Income and Distributions: Needed when collateral generates income or periodic distributions

3. Registration Requirements: Required when the collateral type requires registration with specific authorities

4. Valuation Mechanisms: Include when collateral value may fluctuate and periodic valuation is needed

5. Islamic Structure Compliance: Detailed section needed when transaction requires specific Sharia-compliant structuring

6. Additional Collateral Provisions: Required when there are multiple types of collateral or top-up requirements

7. Foreign Law Considerations: Needed when collateral has cross-border elements

What schedules should be included in a Collateral Contract?

1. Schedule 1 - Collateral Description: Detailed technical description and/or listing of all assets comprising the collateral

2. Schedule 2 - Perfection Requirements: Specific steps and documentation required to perfect the security interest

3. Schedule 3 - Form of Notices: Standard forms for various notices required under the agreement

4. Schedule 4 - Authorized Representatives: List of authorized persons who can act on behalf of each party

5. Appendix A - Valuation Methodology: Detailed procedures for valuing the collateral if applicable

6. Appendix B - Custody Procedures: Detailed procedures for custodian if applicable

7. Appendix C - Sharia Compliance Certificate: Certificate from Sharia board or advisor confirming compliance with Islamic principles

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Banking & Finance

Islamic Finance

Real Estate

Manufacturing

Trading & Commerce

Construction

Energy

Infrastructure

Technology

Transportation & Logistics

Relevant Teams

Legal

Compliance

Finance

Risk Management

Islamic Banking

Corporate Banking

Treasury

Security Administration

Credit

Operations

Relevant Roles

Legal Counsel

Compliance Officer

Finance Manager

Credit Risk Manager

Islamic Finance Specialist

Corporate Lawyer

Security Trustee Officer

Commercial Director

Treasury Manager

Collateral Manager

Chief Legal Officer

Sharia Compliance Officer

Transaction Manager

Senior Legal Associate

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Selling Real Estate Contract

A Saudi Arabian real estate sales contract template compliant with local laws and Sharia principles, facilitating property transfers and ensuring regulatory compliance.

Download

Wholesaling Real Estate Contract

A Saudi Arabia-compliant wholesale real estate contract governing bulk property transactions under local law and Shariah principles.

Download

Non Binding Agreement

A non-binding agreement template for use under Saudi Arabian jurisdiction, combining Sharia law principles with modern commercial practices to document parties' intentions without creating legal obligations.

Download

Non Compete Form

A Saudi Arabian legal document restricting post-employment competitive activities, governed by Saudi Labor Law and Sharia principles.

Download

Agreement For Job Work

A Saudi Arabian law-governed agreement between client and contractor defining terms and conditions for specific job work or project-based services.

Download

Non Disclosure Form

Saudi Arabia-compliant Non-Disclosure Agreement template for protecting confidential information exchange under Saudi law and Shariah principles.

Download

Videography Contract

A Saudi Arabian law-governed agreement for professional videography services, ensuring compliance with local regulations while defining service terms and deliverables.

Download

Subscription Agreement

A Saudi law-governed agreement establishing terms for subscription-based services, compliant with local regulations and Shariah principles.

Download

Production Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for manufacturing or production activities, ensuring compliance with local regulations and Sharia principles.

Download

Novation Agreement (Real Estate)

A Saudi Arabian law-governed agreement transferring real estate contract rights and obligations from one party to another, ensuring compliance with Shariah principles and local property regulations.

Download

Option Contract (Real Estate)

A Sharia-compliant agreement under Saudi Arabian law granting the right to purchase specified real estate at predetermined terms within an agreed timeframe.

Download

Labor Contract

A Saudi Arabian employment agreement that establishes terms and conditions of employment while ensuring compliance with Saudi Labor Law and regulations.

Download

Franchise Agreement

A Saudi Arabian law-governed agreement establishing a franchise relationship, granting business operational rights while ensuring compliance with local regulations and Sharia principles.

Download

Common Agreement

A general-purpose legal agreement template compliant with Saudi Arabian law and Sharia principles, suitable for establishing business relationships in Saudi Arabia.

Download

Barter Agreement

A Saudi Arabian law-governed agreement facilitating the direct exchange of goods/services between parties, structured to comply with both Sharia and commercial law requirements.

Download

Unregistered Sale Agreement With Possession

A Saudi Arabian agreement facilitating property sale and possession transfer without immediate registration, compliant with local law and Sharia principles.

Download

Master Contract

A Saudi law-governed framework agreement establishing terms for ongoing business relationships, compliant with Shariah principles and local regulations.

Download

Notarial Contract

A legally authenticated contract under Saudi Arabian law, officially verified and certified by a licensed notary public, providing enhanced legal security and evidential value.

Download

House Rent Agreement Form

A Saudi Arabian residential lease agreement that establishes rental terms between landlord and tenant, compliant with local laws and Ejar system requirements.

Download

Partnership Agreement Form

A Saudi Arabian law-governed agreement establishing and regulating a business partnership, ensuring compliance with local regulations and Sharia principles.

Download

Landscape Contract

A Saudi Arabian law-governed contract for landscape construction and maintenance services, including works specifications and environmental compliance requirements.

Download

Guarantee Contract

A Saudi Arabian law-governed contract where a guarantor assumes responsibility for another party's obligations to a beneficiary, structured in compliance with Sharia principles and local commercial laws.

Download

Tenancy Agreement Form

A Saudi Arabian lease agreement template that establishes property rental terms between landlord and tenant, compliant with Saudi Tenancy Law and Sharia principles.

Download

Simple Rental Agreement Form

A Saudi Arabia-compliant rental agreement template for residential and commercial properties, incorporating local legal requirements and Shariah principles.

Download

Money Agreement Between Two Parties

A Sharia-compliant money agreement under Saudi Arabian law establishing financial arrangements between two parties with specific terms and conditions.

Download

Side Agreement

A supplementary agreement under Saudi Arabian law that modifies or adds to the terms of a primary agreement while ensuring Shariah compliance.

Download

Novation Contract

A Saudi Arabian law-governed agreement transferring contractual rights and obligations from one party to another, with consent of all parties involved.

Download

Mutual Agreement Between Two Parties

A bilateral agreement template compliant with Saudi Arabian law and Sharia principles, establishing mutual rights and obligations between two contracting parties.

Download

Contract For Selling A Car

A Saudi Arabian law-compliant agreement for the sale and transfer of vehicle ownership, incorporating local regulatory requirements and Sharia principles.

Download

Business Transfer Agreement

A Saudi law-governed agreement for transferring business ownership, including assets, liabilities, and operational elements from one entity to another.

Download

Tooling Agreement

A Saudi Arabian law-governed agreement establishing terms for industrial tooling supply, ownership, and usage, compliant with local commercial and Sharia law requirements.

Download

Representation Agreement

A Saudi law-governed agreement establishing the terms and conditions for commercial representation between a principal company and its Saudi representative.

Download

Notary Rent Agreement

A notarized rental agreement compliant with Saudi Arabian law and Ejar system requirements, establishing terms for property lease.

Download

Non Compete Agreement Between Companies

A Saudi Arabian law-compliant agreement restricting competitive activities between companies within specified parameters and timeframes.

Download

Land Agreement Between Two Parties

A Saudi Arabian land agreement document that formalizes property rights transfer between two parties, compliant with Sharia law and local regulations.

Download

Buyer Agency Agreement

A Saudi Arabian law-governed agreement establishing the relationship between a property buyer and their real estate agent, outlining services, obligations, and compensation terms.

Download

Commercial Lease Form

A Saudi Arabian commercial lease agreement template that establishes terms for leasing business properties, compliant with local laws and Shariah principles.

Download

Vending Machine Contract

A Saudi Arabia-governed agreement for vending machine installation and operation, compliant with local commercial law and Sharia principles.

Download

Contra Agreement

A Saudi Arabian law-governed agreement facilitating the exchange of goods/services between parties without primary monetary consideration, compliant with Sharia and local commercial regulations.

Download

Catering Contract

A Saudi Arabian law-governed agreement establishing terms for catering services provision, incorporating local regulatory requirements and Halal compliance.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it