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The Lender and Borrower Agreement is a fundamental document used in Saudi Arabian financing transactions to establish legally binding and Sharia-compliant relationships between financial institutions and their clients. This agreement is essential for any financing arrangement in Saudi Arabia, whether for corporate or individual borrowers, and must comply with both the Kingdom's banking regulations and Islamic finance principles. The document covers crucial elements including the financing amount, profit calculation methods, payment schedules, security arrangements, and default provisions. It is designed to protect both parties' interests while ensuring compliance with Saudi Arabian Monetary Authority (SAMA) requirements and Sharia principles, making it suitable for various financing purposes from business expansion to asset acquisition.

1. Parties: Identification of the Lender and Borrower with full legal names, addresses, and registration details

2. Background: Context of the financing arrangement and confirmation of Sharia compliance

3. Definitions and Interpretation: Key terms including Sharia-compliant financing concepts and relevant Islamic banking terminology

4. Facility Details: Amount, purpose, and structure of the financing facility in Sharia-compliant terms

5. Conditions Precedent: Documents and conditions required before the facility becomes available

6. Profit Rate and Payments: Sharia-compliant profit rate calculation, payment schedule, and payment mechanisms

7. Representations and Warranties: Statements of fact and assurances from the Borrower

8. Borrower Covenants: Positive and negative obligations of the Borrower during the facility period

9. Events of Default: Circumstances constituting default and consequences

10. Security: Details of any security or guarantees provided

11. Payments and Calculations: Payment mechanics, business day conventions, and calculation methods

12. Changes to Parties: Rules regarding assignment and transfer rights

13. Notices: Communication methods and contact details

14. Governing Law and Jurisdiction: Saudi law as governing law and jurisdiction of Saudi courts