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Credit Agreement For Supply Of Goods
"I need a Credit Agreement For Supply Of Goods under Saudi law for my manufacturing company to provide industrial machinery worth SAR 5 million to a construction company, with credit terms spread over 24 months starting March 2025, including monthly delivery schedules and Sharia-compliant profit rates."
1. Parties: Identification of the creditor/supplier and the debtor/purchaser, including full legal names, registration details, and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility and goods supply arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including financial terms, delivery terms, and technical specifications
4. Credit Facility Terms: Details of the credit facility, including amount, profit rate (compliant with Sharia), payment schedule, and calculation methodology
5. Supply Arrangements: Terms relating to the supply of goods, including specifications, delivery schedules, and quality requirements
6. Payment Terms: Payment structure, installment details, currency, and payment mechanics
7. Security: Security arrangements, guarantees, or collateral required to secure the credit facility
8. Conditions Precedent: Conditions that must be satisfied before the credit facility becomes available
9. Representations and Warranties: Statements of fact and assurances given by both parties
10. Covenants: Ongoing obligations of the parties during the term of the agreement
11. Events of Default: Circumstances constituting default and consequences thereof
12. Termination: Circumstances and procedures for termination of the agreement
13. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes
1. Islamic Finance Compliance: Detailed section on Sharia compliance aspects - include when the agreement needs explicit confirmation of compliance with Islamic finance principles
2. Insurance: Requirements for insurance of goods - include when high-value goods are involved or specific insurance is required
3. Export/Import Requirements: Specific provisions for international trade - include when goods are being imported/exported
4. Tax Provisions: Detailed tax implications and responsibilities - include when complex tax arrangements apply
5. Force Majeure: Provisions for unforeseen circumstances - include when dealing with long-term supply arrangements
6. Assignment and Transfer: Rights to assign or transfer obligations - include when either party might need to transfer rights
7. Confidentiality: Detailed confidentiality obligations - include when sensitive commercial information is involved
1. Schedule 1 - Goods Specification: Detailed technical specifications of goods to be supplied
2. Schedule 2 - Payment Schedule: Detailed payment terms, installment dates, and amounts
3. Schedule 3 - Delivery Schedule: Timeline and details for delivery of goods
4. Schedule 4 - Form of Drawdown Notice: Template for requesting disbursement under the credit facility
5. Schedule 5 - Security Documents: Forms of security documents, guarantees, or collateral arrangements
6. Schedule 6 - Conditions Precedent Documents: List of required documents and conditions to be satisfied
7. Appendix A - Calculation of Profit Rate: Methodology for calculating Sharia-compliant profit rate
8. Appendix B - Form of Compliance Certificate: Template for periodic compliance certification
Authors
Manufacturing
Retail
Industrial Equipment
Construction
Technology and Electronics
Automotive
Energy and Utilities
Healthcare and Medical Equipment
Agriculture
Consumer Goods
Telecommunications
Legal
Finance
Procurement
Supply Chain
Treasury
Risk Management
Compliance
Operations
Credit Control
Commercial
Chief Financial Officer
Finance Director
Commercial Director
Legal Counsel
Procurement Manager
Supply Chain Manager
Credit Controller
Treasury Manager
Contracts Manager
Risk Manager
Islamic Finance Specialist
Operations Director
Compliance Officer
Chief Legal Officer
Financial Controller
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