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The Reverse Purchase Agreement is a specialized financial instrument used in Saudi Arabia when parties wish to enter into a Shariah-compliant financing arrangement. This document type is particularly useful when a party needs short-term financing while maintaining compliance with Islamic financial principles. The agreement must be structured in accordance with Saudi Arabian law and Shariah requirements, carefully documenting both the initial sale and subsequent repurchase commitment. It includes detailed provisions about asset transfer, pricing mechanisms, and risk allocation, while ensuring all aspects comply with both regulatory requirements and Islamic financial principles. This document is commonly used in corporate financing, asset management, and trading operations where conventional interest-based financing structures are not permissible.

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

2. Background: Context of the agreement and confirmation of the parties' intention to enter into a Shariah-compliant reverse purchase arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including specific Islamic finance terminology

4. Initial Sale: Terms and conditions of the initial sale of assets, including precise description of assets and initial purchase price

5. Repurchase Undertaking: Terms of the commitment to repurchase, including repurchase price and timing

6. Asset Delivery and Transfer: Procedures for delivery and transfer of assets in both initial sale and repurchase

7. Payment Terms: Details of payment mechanisms, timing, and currency for both transactions

8. Representations and Warranties: Standard and Shariah-specific representations and warranties from both parties

9. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

10. Covenants: Ongoing obligations of both parties during the agreement term

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Conditions and procedures for early termination

13. Governing Law and Jurisdiction: Specification of Saudi law and Shariah principles as governing law, and jurisdiction for dispute resolution

14. Notices: Procedures for giving notices under the agreement

15. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability