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The Multiple Advance Promissory Note is a critical financial instrument used in Saudi Arabian business transactions where phased or multiple drawdowns of funds are required. This document type is particularly valuable for project financing, construction contracts, or ongoing business operations requiring periodic funding. The structure combines the legal enforceability of a promissory note with the flexibility of multiple advances, all while maintaining compliance with Saudi Arabian law and Sharia principles. It includes essential elements such as the unconditional promise to pay, advance mechanics, payment terms, and profit calculations that align with Islamic finance requirements. The document is commonly used in commercial financing arrangements between banks and corporate entities, providing a secure and compliant method for documenting multiple financial obligations under a single instrument.

1. Parties: Identification of the issuer (promisor) and the beneficiary (promisee), including full legal names and addresses

2. Background: Context of the promissory note issuance and the underlying commercial relationship

3. Definitions: Key terms used in the document, including 'Advance Date', 'Maximum Amount', 'Profit Rate', etc.

4. Unconditional Promise to Pay: Clear and unequivocal promise to pay the specified amount(s)

5. Advance Mechanism: Details of how and when advances can be drawn under the note

6. Payment Terms: Specification of payment dates, amounts, and calculation methods

7. Place of Payment: Designated location or account for payments

8. Events of Default: Circumstances that trigger immediate payment obligation

9. Notice Requirements: Procedures for giving notices regarding advances and payments

10. Governing Law and Jurisdiction: Explicit statement of Saudi Arabian law governance and jurisdiction