Book traversal links for Article 27: Service Agreements Between Parties
Article 27: Service Agreements Between Parties
Effective from Jan 01 2024 - Nov 30 2021
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1- | The Debt-Based Crowdfunding Company shall draw up a paper or electronic contract with Participants in accordance with the relevant legal requirements. Each party shall receive a copy of the contract that must clarify at least the following: | |
a. | Contract parties. | |
b. | Contract scope. | |
c. | Contract term. | |
d. | Institutional Beneficiary’s name - and commercial register. | |
e. | Finance type. | |
f. | Finance Amount. | |
g. | Fees. | |
h. | Rights and obligations of the contract parties. | |
i. | Dispute settlement and compensation mechanism. | |
j. | Profits that Participants will receive. | |
k. | Obligations of the Debt-Based Crowdfunding Company to manage financing, including the method of transferring payments made by the Institutional Beneficiary, to the Participant. | |
l. | Procedures to be followed in case of the Institutional Beneficiary’s default. | |
m. | Contingency arrangements to deal with business disruption or cessation of the Debt-Based Crowdfunding Company. | |
n. | Contract termination and expiration. | |
2- | When providing financing, the Debt-Based Crowdfunding Company shall draw up a paper or electronic contract with the Institutional Beneficiary. Each party shall receive a copy of the finance contract that must include at least the following data and information: | |
a. | Names of the contract parties, commercial register number of the Institutional Beneficiary, official addresses, and contact information including mobile phone number and email address. | |
b. | Finance type. | |
c. | Contract term. | |
d. | Finance Amount. | |
e. | Conditions for withdrawing the Finance Amount, if any. | |
f. | Term cost and its application conditions. | |
g. | Annual percentage rate (APR). | |
h. | Term of payment of fees or funds required without paying the Finance Amount, as well as the conditions for such payment. | |
i. | Consequences of delayed payment of installments. | |
j. | Guarantee and security required. | |
k. | The number of the account used for depositing finance installments and the name of the bank. | |
l. | Early repayment procedures, if any. | |
m. | Procedures for dealing with guarantees in case of value reduction, if any. | |
n. | Procedures for exercising the right to terminate the finance contract. | |
o. | Permission of the Institutional Beneficiary to include its information in the credit record. | |
p. | Requiring the Institutional Beneficiary to notify the Debt-Based Crowdfunding Company, within a reasonable period, of any material changes that would affect Participants, their business, or the implementation of their projects. | |
q. | Requiring the Institutional Beneficiary to submit its financial statements, including bank account statements, on an annual basis at least. | |
r. | Any other information specified by SAMA. |