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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.