| 1. | In this Law, the following terms and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
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Law: Law of Systemically Important Financial Institutions.
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Implementing Regulations: Implementing regulations of the Law.
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Competent Authority: The Saudi Central Bank or the Capital Market Authority, each with respect to financial institutions falling under its supervision.
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Financial Institution: A financial institution supervised by the competent authority.
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Systemically Important Financial Institution (SIFI): A financial institution designated by the competent authority as SIFI in accordance with Article 2 of this Law.
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Foreign Branch: A branch of a non-Saudi financial institution supervised by the competent authority.
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Holding Company: A financial or non-financial company controlling one or more subsidiary financial institutions.
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Subsidiary: A financial or non-financial institution controlled by a financial institution.
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Financial Group: A holding company and its subsidiaries, of which any is a financial institution.
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Competent Judicial Authority: The commercial court with respect to financial institutions supervised by the Saudi Central Bank, and the committees for resolution of securities disputes with respect to financial institutions supervised by the Capital Market Authority.
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Amendment of Rights: A measure taken by the competent authority to reduce or terminate the rights of creditors or holders of capital instruments, or convert them from one type or category to another.
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Transferee: A person who purchases or receives any of the stocks, shares, assets, or liabilities of a SIFI under resolution in accordance with the provisions of this Law.
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Transitional Entity: A company established by the competent authority to transfer all or part of the shares, stocks, assets, or liabilities of a financial institution or more under resolution in accordance with the provisions of this Law.
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Asset Management Entity: An entity with a legal personality established by the competent authority to receive assets from a SIFI under resolution or a transitional entity.
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Critical Activities: Services or acts provided by a financial institution, the suspension of which may lead to the disruption of services vital to the economy or damage financial stability.
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Settlement Systems: Payment systems, cash settlement systems, securities settlement systems, deposit systems, and set-off systems.
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Guarantee: An asset provided or agreed to be provided as security for a financial liability within a financial guarantee arrangement, or a financial guarantee arrangement by transfer of ownership.
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Financial Guarantee Arrangements: Arrangements according to which the guarantor provides a guarantee to fulfill a financial liability, provided that it does not include the transfer of ownership of the guarantee to the obligee; this shall include pledges.
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Financial Guarantee Arrangements by Transfer of Ownership: Arrangements by which the guarantor transfers the ownership of the guarantee to the obligee to guarantee the fulfilment of a financial liability; this shall include repurchase agreements.
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Guaranteed Liability: Any financial liability secured by a guarantee.
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Suspension: Suspending the right of any party, with the exception of the competent authority, to initiate or complete any procedure or action against a financial institution or its holding company or subsidiary.
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Acceleration: Any arrangement which entails the maturity of a financial liability against a financial institution prior to the maturity date.
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Termination: Any arrangement which grants the party engaged in dealings with the financial institution the right to terminate, suspend, reduce, or cancel the liabilities thereof, or the closure, set-off or liquidation of financial positions prior to the maturity date.
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Assets: Movable and immovable property, intellectual property rights and receivables, whether current or future, and any associated rights, as well as other assets with current or future financial value.
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Capital Instrument: What constitutes part of the capital of a financial institution, whether in the form of securities or shares. This includes instruments which enable its holder to subscribe to capital instruments.
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Owner: Any natural or legal person who owns any capital instrument.
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| 2. | The Implementing Regulations shall include definitions of other terms mentioned in this Law.
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