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The Credit Facilities Agreement is a fundamental document used in Saudi Arabian banking and finance transactions to establish and govern the provision of various types of financing facilities. It is essential for any significant financing arrangement in Saudi Arabia, whether for corporate or individual borrowers, and must comply with both Shariah principles and Saudi banking regulations, particularly those issued by SAMA (Saudi Central Bank). The agreement covers all aspects of the financing relationship, including facility types, profit calculations, security arrangements, and covenant packages. It is particularly important that the document adheres to Islamic finance principles, avoiding conventional interest structures and incorporating accepted Shariah-compliant financing mechanisms. The agreement serves as the primary document governing the rights and obligations of all parties involved in the financing arrangement, while ensuring compliance with Saudi Arabian legal requirements and banking practices.

1. Parties: Identification of the financial institution and the borrower(s)

2. Background: Context of the agreement and confirmation of Shariah compliance

3. Definitions and Interpretation: Definitions of terms and interpretation principles

4. The Facilities: Details of the credit facilities being provided, including types, amounts, and purpose

5. Conditions Precedent: Conditions to be satisfied before utilization of the facilities

6. Utilization: Process and requirements for drawing down the facilities

7. Profit Rate and Fees: Shariah-compliant profit rate structure and applicable fees

8. Repayment and Prepayment: Terms for repayment and early repayment provisions

9. Payment Mechanics: Payment procedures, timing, and currency provisions

10. Representations and Warranties: Standard and transaction-specific representations

11. Information Undertakings: Obligations to provide financial and other information

12. General Undertakings: Positive and negative covenants of the borrower

13. Events of Default: Circumstances constituting default and consequences

14. Changes to Parties: Transfer and assignment provisions

15. Administration: Administrative provisions and notices

16. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction provisions