Regulatory Alerts2014-07-22
Finance Contract Summary Form
The Saudi Central Bank issued a circular requiring all banks and financing companies operating in the Kingdom to attach the standardized Finance Contract Summary Form to the front of every consumer finance contract governed by updated financing regulations. The form mandates transparent disclosure of the total payable amount, annual percentage rate, installment breakdown, all associated fees and insurance, and cross-references to key contractual clauses regarding late payments, early settlement, withdrawal rights, collateral adjustments, and termination. While beneficiaries must sign to acknowledge receipt, the regulator explicitly states that the summary does not substitute the full contract text nor relieve parties of their contractual obligations.
In the name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank Headquarters
Office Deputy Governor for Supervision
Ref. No.: 351000123114 Date: 1435/09/24 Attachments: Form
Date: Corresponding to:
Circular
Dear Sir/Madam, ................................................................................................. Peace, mercy, and blessings of Allah be upon you,,,
Subject: Finance Contract Summary Form
With reference to Article 79 of the Executive Regulations of the Financing Companies Control System and Paragraph (1) of Article 5 of the updated Consumer Financing Controls.
Attached is the "Finance Contract Summary Form", which must precede all finance contracts subject to the provisions of the Financing Control System and the updated Consumer Financing Controls. The electronic version of the form can be obtained through the Bank's website (www.sama.gov.sa).
For your information and compliance.
Yours sincerely,,,
(Signature) Abdulaziz bin Abdulrahman Al-Hulaisi Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom
- Financing companies operating in the Kingdom
P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543
[Financing Entity Logo] Finance Contract Summary
| Beneficiary Details | |
|---|---|
| Beneficiary Name | Date |
| National ID, Residency, or Commercial Registration Number | Contract Reference Number |
| Financing Details | |
|---|---|
| Details of Amount Payable | Amount (SAR) |
| Financing Amount | |
| (+) Total Financing Cost | |
| Installment Cost | |
| Administrative Fees | |
| Insurance* | |
| Property Valuation Fees* | |
| Any Other Fees or Costs* | |
| (=) Total Amount Payable |
| Key Finance Contract Provisions | |
|---|---|
| Financing Contract Repayment Schedule | Article, Clause, or Annex No. (....) Page No. (....) |
| Consequences of Late Installment Payments | Article or Clause No. (....) Page No. (....) |
| Early Settlement Procedures | Article or Clause No. (....) Page No. (....) |
| Withdrawal Right Procedures (if applicable)* | Article or Clause No. (....) Page No. (....) |
| Collateral Management Procedures in Case of Depreciation (if applicable)* | Article or Clause No. (....) Page No. (....) |
| Contract Termination Right Procedures | Article or Clause No. (....) Page No. (....) |
Note: Reviewing this summary does not replace reading the full contents of the finance contract and its annexes, nor does it exempt the beneficiary from the obligations stated therein.
Beneficiary Signature (Acknowledgment & Receipt) | Authorized Person Signature (Financing Entity) & Stamp
- Insert the phrase "Not Applicable" if the relevant item does not apply to the finance contract.
[Financing Entity Information & Contact Details]