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The Government Deposit Guarantee is a crucial document in the Saudi Arabian banking system that provides security and stability to the financial sector by protecting depositors' funds. This agreement is typically implemented when a financial institution receives a banking license in Saudi Arabia or when existing guarantee arrangements need updating to reflect new regulatory requirements. The document outlines the government's commitment to protect deposits up to specified limits, incorporating both conventional and Islamic banking principles, and ensures compliance with SAMA regulations and Saudi banking laws. It includes detailed provisions for activation events, payment mechanisms, and ongoing compliance requirements, serving as a key element in maintaining public confidence in the banking system. The guarantee typically covers both domestic and foreign currency deposits, with specific provisions for different types of deposit accounts and customer categories.

1. Parties: Identification of the government entity providing the guarantee and the financial institution receiving it

2. Background: Context of the guarantee, including regulatory basis and purpose

3. Definitions: Key terms used in the agreement, including specific banking and regulatory terminology

4. Scope of Guarantee: Detailed description of deposits covered, maximum amounts, and currency specifications

5. Terms and Conditions: Core conditions under which the guarantee operates and becomes effective

6. Shariah Compliance Declaration: Statement confirming compliance with Islamic banking principles

7. Rights and Obligations: Specific responsibilities of both parties under the guarantee

8. Trigger Events: Circumstances that activate the guarantee

9. Payment Mechanism: Process and timing for guarantee payments when triggered

10. Reporting Requirements: Regular reporting obligations of the financial institution

11. Representations and Warranties: Standard declarations by both parties regarding capacity and authority

12. Term and Termination: Duration of the guarantee and circumstances for termination

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanism

14. Notices: Communication protocols between parties

15. Counterparts and Execution: Signing requirements and validity of copies