Article 7

No: 2/MFC

Date(g): 24/2/2013 | Date(h): 14/4/1434

Effective from Feb 24 2013 - Mar 07 2013
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Founding shareholders of the Finance Company, or their representatives, shall apply to SAMA for a License. The application shall specify the activities for which a License is requested, and includes the following:

1.	Completed application form required by SAMA;
2.	Draft articles of association and by-laws of the Finance Company;
3.	Description of the organizational structure of the Finance Company showing all necessary departments and functions and their main tasks;
4.	List of all founding shareholders setting out the number and percentage of shares that each founding shareholder will own;
5.	Fit and proper requirements form for founding shareholders signed by each founding shareholder;
6.	Fit and proper requirements form for Board members signed by each candidate for Board membership;
7.	Feasibility study identifying target market, services to be provided, business model, and strategy of the Finance Company in addition to a five- year business plan sets out at least the following:
	a.	Finance Activities, for which a license is requested, products and a marketing plan;
	b.	Credit granting policies and procedures;
	c.	Estimated financial statements, projected annual revenue, expenses and financial margins and targeted growth rates, taking into account the requirements of capital adequacy and liquidity assessments of the SAMA;
	d.	Projected start-up costs and funding thereof;
	e.	Projected ongoing financing of operations;
	f.	Branch offices to be established;
	g.	Plan and programs of monitoring and managing risks and compliance;
	h.	Recruitment and training plan, including the projected number of employees and percentage of Saudi nationals at each department and each organizational level, and the training and qualification programs for employees.
8.	An irrevocable bank guarantee issued in favour of SAMA by one of the local banks for an amount equivalent to the required minimum capital for the Finance Activity or Activities, requested to be licensed, in accordance with the model set by the SAMA. Such bank guarantee is renewable automatically until the required capital is paid up in full. This guarantee shall be released upon the request of the founding shareholders in the following cases:
	a.	Paying up the capital in cash.
	b.	Withdrawing the license application.
	c.	Refusing the license application by SAMA.
9.	Drafts of proposed agreements and contracts with third parties, including agreements and contracts with related parties and external service providers; and
10.	Any other documents or information that SAMA may request.