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Mortgage Loan Extension Agreement
"I need a Mortgage Loan Extension Agreement under Saudi law for Al Riyadh Bank extending a commercial property mortgage for an additional 5 years, starting from March 2025, with quarterly profit rate reviews and updated property valuation requirements."
1. Parties: Identification of the lender (financial institution) and borrower(s), including their full legal names, addresses, and registration details
2. Background: Reference to the original mortgage agreement, reason for extension, and confirmation of current loan status
3. Definitions: Key terms used in the agreement, including references to original mortgage terms and new extension-specific definitions
4. Extension Terms: Specific details of the loan extension, including new maturity date and any modified repayment terms
5. Confirmation of Original Security: Confirmation that the original mortgage security remains valid and enforceable for the extended term
6. Payment Terms: Modified payment schedule, profit rate (compliant with Shariah), and payment mechanisms
7. Representations and Warranties: Updated borrower confirmations regarding financial status, property condition, and continued compliance with original terms
8. Conditions Precedent: Conditions that must be satisfied before the extension becomes effective
9. Covenants: Ongoing obligations of the borrower during the extended term
10. Events of Default: Circumstances that constitute default under the extended agreement
11. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant courts' jurisdiction
12. Execution: Signature blocks and execution requirements compliant with Saudi law
1. Additional Security: Required if new security is being added as part of the extension arrangement
2. Property Revaluation: Include if a new property valuation has been conducted and needs to be referenced
3. Insurance Requirements: Include if insurance arrangements are being modified as part of the extension
4. Fees and Charges: Include if new or modified fees apply to the extension
5. Third Party Consents: Required if any third party approvals are needed for the extension
6. Tax Provisions: Include if there are specific tax implications of the extension that need to be addressed
7. Assignment and Transfer: Include if transfer rights are being modified in the extension
1. Schedule 1 - Original Mortgage Details: Summary of key terms from the original mortgage agreement
2. Schedule 2 - Modified Payment Schedule: Detailed new payment schedule showing installment dates and amounts
3. Schedule 3 - Property Details: Updated property description and valuation details
4. Schedule 4 - Conditions Precedent Documents: List of documents required to be delivered before extension effectiveness
5. Schedule 5 - Form of Extension Notice: Standard form for formal notification of extension completion
6. Appendix A - Shariah Compliance Certificate: Confirmation of compliance with Islamic finance principles
7. Appendix B - Updated Property Documentation: Any new or updated property-related documents
Authors
Banking & Financial Services
Real Estate
Islamic Finance
Property Development
Mortgage Services
Legal Services
Financial Advisory
Real Estate Investment
Property Management
Legal
Mortgage Operations
Islamic Banking
Real Estate Finance
Credit Risk
Compliance
Property Services
Loan Administration
Documentation
Client Relations
Legal Counsel
Mortgage Officer
Shariah Compliance Officer
Real Estate Finance Manager
Credit Risk Officer
Property Valuation Specialist
Banking Relationship Manager
Loan Operations Manager
Compliance Officer
Documentation Specialist
Islamic Banking Officer
Real Estate Portfolio Manager
Legal Documentation Manager
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