Article (Two): Definitions

Effective from Feb 21 2025 - Feb 15 2025
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The following terms and expressions mentioned in this Regulation shall have the meanings assigned to them below unless the context requires otherwise:

Netting:	The operation of a set of provisions in a Netting Agreement between two Parties that may be commenced by notice given by one Party to the other upon the occurrence of an event of default with respect to the other Party or other termination event or that may occur automatically, in certain circumstances, as specified in the Netting Agreement; and has the following effect:
	(1)	The termination, liquidation and/or acceleration of any present or future payment or delivery obligations or entitlements under or in connection with one or more Qualified Financial Contracts to which a Netting Agreement applies.
	(2)	The calculation or estimation of a close-out value, market value, liquidation value or replacement value in respect of each obligation or entitlement or group of obligations or entitlements terminated, liquidated and/or accelerated under paragraph ‎(1) of this definition.
	(3)	The conversion of any values calculated or estimated under paragraph ‎(2) of this definition into a single currency.
	(4)	The determination of the net balance of the values calculated under paragraph ‎(2) of this definition, as converted under paragraph ‎(3) of this definition, by the operation of netting or set-off, giving rise to the obligation of one Party to pay an amount equal to the net balance to the other Party.
Netting Agreement:	Any agreement between two Parties that provides for Netting of present or future payment or delivery obligations or entitlements arising under or in connection with one or more Qualified Financial Contracts to which the agreement ("Netting Agreement”) applies and it includes without limitation:
	(1)	Any agreement between two Parties that provides for netting of the amounts due under two or more Netting Agreements.
	(2)	Any Financial Collateral Arrangement related to or forming part of one or more of the foregoing agreements.
Qualified Financial Contract:	Any financial agreement, contract or transaction, including any terms and conditions incorporated by reference in any such financial agreement, contract or transaction, under or in relation to which any payment or delivery obligations are due to be performed at a certain time or within a certain period of time and whether or not subject to any condition or contingency; and it includes the Qualified Financial Contracts shown in annex (1), and any subsequent amendments to it.
Central Bank (SAMA):	The Saudi Central Bank.
Bankruptcy Law:	The Bankruptcy Law issued by Royal Decree No. (M/50) dated 28/05/1439H and Council of Ministers Resolution No. (264) dated 27/05/1439H, and its implementing regulation issued by Council of Ministers Resolution No. (622) dated 24/12/1439H, and any subsequent amendments to it.
Movable Property Security Law:	The Movable Property Security Law issued by Royal Decree No. (M/94) dated 15/08/1441H and Council of Ministers Resolution No. (512) dated 14/08/1441H, and its implementing regulation, and any subsequent amendments to it.
Law of Systemically Important Financial Institutions:	The Law of Systemically Important Financial Institutions issued by Royal Decree No. (M/38) dated 25/04/1442H and Council of Ministers Resolution No. (253) dated 23/04/1442H, and any subsequent amendments to it.
Bankruptcy Proceedings:	The procedures stipulated in Article (Two) of the Bankruptcy Law, which includes any of the following:
	(1)	Protective settlement.
	(2)	Financial restructuring.
	(3)	Liquidation.
	(4)	Small debtors' protective settlement.
	(5)	Small debtors' financial restructuring.
	(6)	Small debtors' liquidation.
	(7)	Administrative liquidation.
Bankruptcy Trustee:	A designated person to manage any of the Bankruptcy Proceedings in accordance with the Bankruptcy Law, this includes the Bankruptcy Trustee as defined in the Bankruptcy Law.
Bankruptcy Commission:	The bankruptcy commission established pursuant to Article (Nine) of the Bankruptcy Law.
Party:	A person constituting one of the parties to a Netting Agreement or Multibranch Netting Agreement.
Non-bankrupt Party:	A Party where it is the counterparty to a Bankrupt Party.
Bankrupt Party:	The Party in relation to which any of the Bankruptcy Proceedings had commenced pursuant to the Bankruptcy Law
Cash:	Money credited to an account in any currency, or a similar claim for repayment of money, such as a money market deposit.
Collateral:	Any money or asset or other credit support, including without limitation, any of the following:
	(1)	Cash in any currency.
	(2)	Any kind of securities, which includes, without limitation, shares and debt instruments.
	(3)	Guarantees, letters of credit and obligations to reimburse.
	(4)	Any asset used as collateral in the Kingdom of Saudi Arabia, without prejudice to the provisions of the Movable Property Security Law and any other relevant laws.
Financial Collateral Arrangement:	Any arrangement for the provision of Collateral or margin or other credit enhancement related to or forming part of a Netting Agreement, or one or more Qualified Financial Contracts to which a Netting Agreement applies, including without limitation:
	(1)	a pledge or any other form of security interest in Collateral, whether possessory or non-possessory.
	(2)	a Title Transfer Collateral Arrangement.
	(3)	any guarantee, letter of credit or reimbursement obligation by or to a party to one or more Qualified Financial Contracts, in respect of those Qualified Financial Contracts; or a Netting Agreement.
Title Transfer Collateral Arrangement:	Any arrangement for the provision of Collateral or margin relating to a Netting Agreement or a Qualified Financial Contract under which the title of the Collateral or margin is transferred, by outright sale or by way of security, including -without limitation- a sale and repurchase agreement, securities lending agreement, securities buy/sell-back agreement or an irregular pledge.
Foreign Multibranch Party:	is an entity that is not organized, or headquartered in the Kingdom of Saudi Arabia and that has entered into one or more Qualified Financial Contracts through its branch or agency in the kingdom of Saudi Arabia, and has entered into one or more Qualified Financial Contracts in its Domicile.
Domicile:	The Domicile of each Party to a Netting Agreement is the country where its headquarters is located; in the event of multiple branches of this Party, the country where a branch is located shall be considered the Domicile in respect of the activities of such branch.
Multibranch Netting Agreement:	A Netting Agreement between two Parties under which at least one Party is a Foreign Multibranch Party with a branch or agency in the Kingdom of Saudi Arabia.
Bankrupt Local Branch:	A branch or agency in the Kingdom of Saudi Arabia of a Foreign Multibranch Party that is subject to any Bankruptcy Proceeding pursuant to the Bankruptcy Law in the Kingdom, regardless of whether the Foreign Multibranch Party is subject to any bankruptcy proceeding in its Domicile or in any other country.
Local Bankruptcy Trustee:	A natural or corporate person appointed as a Bankruptcy Trustee for the Bankrupt Local Branch under Bankruptcy Proceedings in the Kingdom of Saudi Arabia.
Foreign Bankruptcy Trustee:	A natural or corporate person appointed, permanently or for a limited period only, as a bankruptcy trustee or other insolvency practitioner for a Foreign Multibranch Party under bankruptcy proceedings in its Domicile or in any other country.
Global Net Payment Entitlement:	The amount, if any, owed by the Non- Bankrupt Party to the Foreign Multibranch Party as a whole after giving effect to the netting provisions of a Multibranch Netting Agreement with respect to all Qualified Financial Contracts subject to Netting under such Multibranch Netting Agreement.
Local Net Payment Entitlement:	means -with respect to a Multibranch Netting Agreement– the amount, if any, that would have been owed by the Non- Bankrupt Party to the Foreign Multibranch Party after Netting only those Qualified Financial Contracts entered into by the Non-Bankrupt Party with the Bankrupt Local Branch to which a Multibranch Netting Agreement applies.
Local Net Payment Obligation:	means - with respect to a Multibranch Netting Agreement- the amount, if any, that would have been owed by the Foreign Multibranch Party to the Non-Bankrupt Party after Netting only those Qualified Financial Contracts entered into by the Non-Bankrupt Party with the Bankrupt Local Branch to which a Multibranch Netting Agreement applies.