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A Rollover Loan Agreement is utilized in Saudi Arabia when parties seek to establish a revolving credit facility that complies with both Islamic finance principles and Saudi banking regulations. This document is essential for financial institutions offering Shariah-compliant revolving credit facilities to corporate borrowers in Saudi Arabia. It includes comprehensive provisions for facility utilization, profit calculation, rollover mechanics, and Islamic structure (typically through Commodity Murabaha arrangements). The agreement must comply with SAMA regulations and be approved by the financial institution's Shariah board. It's particularly relevant for ongoing business financing needs where borrowers require flexibility to draw down and repay funds multiple times within a specified period.

1. Parties: Identification of the lender(s) and borrower(s), including registration details and addresses

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

3. Definitions and Interpretation: Key terms including 'Facility', 'Profit Rate', 'Rollover Period', and interpretation principles

4. The Facility: Details of the facility amount, purpose, and rollover mechanics

5. Islamic Structure: Description of the Islamic structure used (e.g., Commodity Murabaha) and compliance requirements

6. Conditions Precedent: Documents and conditions required before utilization

7. Utilization: Process and requirements for drawing down the facility

8. Rollover Provisions: Mechanics for rolling over the facility, notice requirements, and conditions

9. Payment Provisions: Payment mechanics, profit calculations, and payment dates

10. Representations and Warranties: Standard and Saudi-specific representations and warranties

11. Undertakings: General, financial, and Shariah-related covenants

12. Events of Default: Default triggers and consequences

13. Changes to Parties: Transfer and assignment provisions

14. Administration: Calculation of profits, notices, and administrative matters

15. Governing Law and Jurisdiction: Saudi law provisions and jurisdiction arrangements