Each installment of the total amount payable by the Beneficiary shall fall due on Salary Date of each calendar month or its equivalent in Hijri Date.
1.2-The Beneficiary shall pay the Creditor the installments on a regular basis and on the agreed dates as per the installment payment schedule.
1.3-The Creditor is entitled to remind the Beneficiary of the monthly installment date prior to the maturity date thereof through SMS or via the email address stated in the contact details for notice purposes, as indicated in the Preamble of the Contract, and may remind it again of payment after the maturity date.
1.4-In case any amount payable by the Beneficiary falls due on a day other than a Business Day, the Beneficiary is entitled to pay the said amount on the first following Business Day.
In case the Beneficiary delays payment of any installment, in whole or in part, for (7) Business Days after the maturity date of such installment, the Creditor may send a Delay Notice to any address of the Beneficiary (and to the Guarantor, if any) set out in the contact details for notification outlined in the preamble of the Contract, indicating late payment by the Beneficiary and informing it that the payment shall be made immediately.
3.2-The Beneficiary shall be considered in default in case of delay of payment, in whole or in part, of (5) consecutive or intermittent installments, and shall also be considered in default in case of delay of payment in whole or in part of (3) consecutive installments or (5) intermittent installments. In such instances, the Creditor may consider the Beneficiary in default and shall send a Notice of Default to the Beneficiary (and, if applicable, the Guarantor) at any of the addresses listed in the contact information for notices section of the Contract's preamble. Further, the Creditor shall give the Beneficiary a grace period not exceeding (30) calendar days from the date of the said notice.
3.3-In case the Beneficiary (or the Guarantor, if any) fails to remedy the default within the period indicated in the Notice of Default, the Creditor may consider this a breach of the Contract and act under Article (10) of the Contract.
3.4-In case of default by the Beneficiary, the Creditor shall be entitled not to send the Notice of Default to the Beneficiary in any of the following events:
3.4.1-In the case of fraudulent activities by the Beneficiary (or the Guarantor, if any), which should be proved by the Creditor.
3.5-The Creditor's failure to exercise any of its rights defined under this Contract, laws, or relevant instructions shall not be construed as a waiver of such rights.
The Beneficiary may terminate the Contract under a written notice (paper-based or electronic) to any of the Creditor's addresses indicated in the contract details outlined in the Preamble of the Contract within (10) days from the conclusion of the Contract. The Creditor may request documents proving that the conditions set out in Clause (2) do not apply to the Beneficiary.
2-The Beneficiary may not exercise the right to terminate the Contract, if any of the following conditions are met:
2.1-In case the Beneficiary withdraws any part of the finance amount.
2.2-In case the Beneficiary uses any method to obtain the finance provided to it by the Creditor for the purposes of supplying goods or services, including the deposit of shares in the Beneficiary’s portfolio and the ownership or use of the Financed Asset by the Beneficiary.
3-In case the Contract is terminated under clause (1) of this Article, the Creditor may not impose any credit cost (profit) or fees or claim any commissions from the Beneficiary.
The Beneficiary may apply at any time for early repayment.
2-The Creditor is entitled to claim the amounts indicated below from the Beneficiary to be enabled to make full early repayment, as follows:
a)Outstanding finance amount
b)Reinvestment cost (profit), subject to not exceeding the Credit Cost (Profit) of the three installments following the last due installment prior to the date on which the Beneficiary submitted an early payment request, in accordance with the installment schedule .
c)Any non-refundable expenses arising from the Contract that are paid by the Creditor to a third party, provided that the Creditor proves such payment.
3-The Beneficiary shall pay the early repayment amount due within (7) Business Days from the date of his notification to this effect. According to the instructions related to the periods for issuance of clearance letter and debt transfer, the Creditor shall issue a clearance letter to the Beneficiary within one Business Day and within seven Business Days in the case of a client with a credit card or monthly debit card, , and shall update the Beneficiary’s credit record with the credit information companies.
The Beneficiary shall pay the administrative charges and fees agreed upon in Article (5) of the Contract, provided that total administrative charges and fees shall not exceed (SAR 5000) or (1%) of the Finance Amount4, whichever is less, excluding government taxes.
2-The Creditor shall incur the costs and fees for which it is responsible under this Contract or the relevant instructions and laws.
The Beneficiary undertakes to provide the Creditor with one or more guarantees or guarantee equivalent, as follows 5:
The Beneficiary represents and warrants that the information and documents provided to the Creditor for the purpose of conducting any research or evaluation in order to enter into the Contract are true, correct, accurate, and not misleading.
2-The Beneficiary represents and warrants that the obligations set out in the Contract are effective and binding and undertake to abide by them. The Beneficiary further acknowledges that the Creditor's books and entries shall be considered as definitive and final proof of the validity of the amounts stated in the Creditor's records and shall be considered legal evidence that may be invoked at any time or in the event of a dispute between both parties, unless the Beneficiary objects to them within (7) Business Days from the date of being notified of his entry in the Creditor's records.
3-The Beneficiary represents and warrants that all guarantees or guarantee equivalent (if any) provided to the Creditor shall remain effective until the Beneficiary fulfills his obligations under the Contract. The Beneficiary further warrants that in case there is a substantial decrease in the value of the said guarantees or a decrease that affects the Creditor's rights resulting from the guarantees, the Beneficiary shall submit additional guarantees satisfactory to the Creditor, taking into account the installments paid by the Beneficiary up to the time of the decrease in the value of the guarantees.
4-The beneficiary undertakes and acknowledges that he will continue to transfer the salary to the financier in the event of retirement or change of employer 6.
5-The Beneficiary represents and warrants that his financial liability is free from any claims or obligations not disclosed to the Creditor, at the time of the finance request, that may significantly and directly affect the Beneficiary's ability to meet his financial obligations under this Contract. The Beneficiary further assures his acceptance of the agreed installments amount and undertakes to notify the Creditor of any change that may occur in the future and materially affect his financial capacity to fulfill his obligations in accordance with the Contract.
6-The Beneficiary represents and warrants that it did not declare bankruptcy or insolvency and that no legal action has been brought against it to declare bankruptcy or insolvency.
7-The Beneficiary shall promptly notify the Creditor of any circumstances that may result in a breach or termination of this Contract, as well as the steps taken to remedy the situation.
8-The above representations and warranties shall remain valid throughout the Contract term, and the Beneficiary may not claim that it is limited to the time of signing the Contract.
The Creditor represents and warrants that the obligations outlined in the Contract are effective and binding, and undertakes to abide by them.
2-The Creditor represents and warrants that it did not take any action to declare bankruptcy or insolvency and no legal action has been taken against it to declare its bankruptcy or insolvency.
3-The Creditor represents and warrants that it duly and thoroughly considered, prior to concluding the Contract, the Beneficiary’s credit status and ability to incur the credit obligations arising from this Contract.
4-The Creditor shall ensure honest and fair treatment of the Beneficiary throughout the stages of their relationship and to adopt the best practices to preserve the Beneficiary's rights. The Creditor shall also comply with the laws and instructions related to this Contract.
5-The Creditor shall protect and ensure the privacy of the Beneficiary's financial and personal information and not use it save for specific professional and operational purposes, except the information disclosed by the Creditor to the competent government entities or licensed non-governmental entities to the extent necessary to fulfill its right in accordance with the relevant laws and controls.
6-The above representations and declarations shall remain valid throughout the Contract term and the Creditor may not claim that it is limited to the time of signing the Contract.
The Beneficiary shall be considered in breach of his obligations under this Contract in any of the following events (each of which shall be referred to as "event of default"):
1.1-In case the Beneficiary fails to pay the due installments on time and does not remedy such default within the period stated in the notice of default, in accordance with the provisions of delay and default on payment set out in Article (8) of this Contract.
1.2-In case the Beneficiary substantially violates the terms and conditions of the Contract and fails to remedy the said violation within the period set out in the Contract or within (30) days from the date of the Creditor's notice to the Beneficiary of this violation (if no other period is provided in this Contract).
1.3-If any representations, declarations, or warranties made under this Contract are proven to be false.
1.4-In case the Beneficiary is declared bankrupt or insolvent or upon the appointment of a liquidator, judicial or administrative receiver, trustee, or any other officer of a similar position to carry out these tasks in relation to all or part of the Beneficiary’s assets, business or Financed Asset.
2-Without prejudice to the provisions of the relevant regulations and instructions, the Creditor shall take any of the following actions in the case of an event of default:
15.2.1-Discuss the matter with the Beneficiary and agree to amend the Contract duration, payment dates, value of installments, or otherwise, when necessary, in order to give the Beneficiary an opportunity to rectify his position.
15.2.2-Agree with the Beneficiary to apply for early total repayment, in accordance with the early repayment provisions set forth in Article (10) of the Contract.
15.2.3-Enforce its rights under any of the Guarantee Documents in accordance with applicable controls.
3-In case the Creditor executes the guarantees and guarantee equivalent (if any), the Beneficiary shall be entitled to the amount in excess of the amounts due to the Creditor.
The Beneficiary shall be relieved the obligations under this Contract in case of death or total disability, in accordance with the collection controls and procedures for individual customers issued by the Saudi Central Bank. The Beneficiary shall be then considered to be in full compliance with the obligations in accordance with the Contract. The Creditor shall issue a clearance letter to the Beneficiary or to the heirs in accordance with the protection principles and rules of financial institutions’ customers issued by the Saudi Central Bank and shall update his credit record at the credit information company within the period specified by the relevant laws and instructions.
2-In the event that death or total disability is excluded from exemption, in accordance with the collection controls and procedures for individual customers issued by the Saudi Central Bank, then the Contract shall be terminated and addressed in accordance with the provisions of contract breach set out in Article (10) of the Contract or as determined by the Creditor.
The Creditor shall have the right to authenticate this Contract and any of its appendices or guarantees and guarantee equivalent (if any) at the competent authorities to secure the Creditor's rights. The Beneficiary shall give consent and take the necessary actions to enforce this right
2-The Creditor shall incur the costs of authenticating the Contract (if any) and may not charge these costs to the Beneficiary.
All notices sent by the Creditor to the Beneficiary shall be in writing (paper-based or electronic) and shall be effective and binding and sent during Business Days and hours to any of the addresses set out in the contact detail for notices indicated in the Preamble of Contract. Delay notice, default notice, or breach notice shall be deemed delivered or sent to the addressees only after two Business Days from the date of sending them, provided a copy is also sent to the guarantor (if any).
2-Any notices sent by the Beneficiary (or the guarantor, if any) shall be deemed to be delivered to the Creditor, provided that they are sent during Business Days and hours to the addresses set out in the contact details for notices outlined in the Preamble of the Contract. If the email is sent on a day other than a Business Day, or after (17:00) on a Business Day, it shall be deemed to be delivered to the Creditor on the next Business Day.
3-Each party shall immediately notify the other of any changes to its contact addresses. Either party that fails or omits to notify the other party of changing its contact address or addresses may not claim that it did not receive or was not aware of the notice.
For the purposes of this Contract and as per the applicable laws and instructions, the Beneficiary grants his approval to the Creditor to collect and process the information and details, including credit information, to examine the Beneficiary’s credit record and behavior and verify his financial solvency and capability to make the payments. Moreover, the Beneficiary grants his approval to create a credit record, if not available, and lists his credit details at any entity licensed to practice the activity of credit information. The Beneficiary further agrees that the Creditor is entitled to provide and exchange the credit information related to this Contract with any entity licensed to practice the activity of credit information.
2-The Beneficiary shall give his consent to the Creditor to communicate with the employer to obtain salary data and information and follow up with the employer, in case of any changes to the salary to determine the reasons 7.
3-The Creditor shall provide the Beneficiary with the payment summary of this Contract - upon request - to any of the addresses set out in the contact details for notices indicated in the preamble of the Contract.
4-The Creditor, upon the Beneficiary's request, shall reschedule the debt in case a mandatory or voluntary change to the Beneficiary's conditions is demonstrated, as per the instructions issued by the Saudi Central Bank.
5-If any article of this Contract is held to be invalid, unenforceable, or illegal, the remaining articles of the Contract shall remain valid, enforceable and legal. The Creditor and Beneficiary shall use their best efforts to correct the invalid article.
6-In case the Beneficiary has an inquiry, dispute, or complaint, the Beneficiary shall send a request to the contact details for complaints and objections indicated in the preamble of the Contract. The Creditor shall review and respond to the request according to the procedures applicable in such cases within the period specified in the instructions of the Saudi Central Bank.
7-The Beneficiary may request an English counterpart of the Contract.
8-The governing language of the Contract shall be Arabic. In the event of a discrepancy between the Arabic and English versions of any document, the Arabic version will take precedence.
9-This Contract and its appendices have been executed in two counterparts signed by both parties. The Creditor and Beneficiary have received a copy to act thereunder and in accordance with the conditions, representations, and appendices thereof.
Contract shall be governed by, construed and executed in accordance with the applicable laws of the Kingdom of Saudi Arabia, and any disputes arising out of this Contract shall be resolved in accordance with such laws.
2-Any dispute arising between the Parties shall be settled amicably. If no amicable settlement can be reached within (15) Business Days from the date of the dispute, either party is entitled to refer to the competent judicial authority to settle the dispute.
