Instructions for Regulating Lending-Based Crowdfunding Activity No. (8/2026)

CENTRAL BANK OF JORDAN

Number: 3/28/874
Date: 7/4/1447 AH
Corresponding to: 15/9/2026 AD

Instructions for Regulating Lending-Based Crowdfunding Activity No. (8/2026)

Issued pursuant to the provisions of Articles (4/b) and (65/b) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments, and Article (25) of the Finance Companies Regulation No. (107) of 2021 and its amendments.

Article (1)
These Instructions shall be called "Instructions for Regulating Lending-Based Crowdfunding Activity" and their provisions shall apply to all companies engaged in lending-based crowdfunding activity in the Kingdom and shall be effective from the date of their approval.

Article (2) Definitions
a. The following words and phrases, wherever they appear in these Instructions, shall have the meanings assigned to them below, unless the context indicates otherwise:
Bank: The Central Bank of Jordan.
Governor: The Governor of the Bank.
Company: The company licensed to practice lending-based crowdfunding activity.
Regulation: Finance Companies Regulation No. 107 of 2021 and its amendments, or any legislation that replaces it.
Board of Directors: The Company's Board of Directors.
Lending-Based Crowdfunding Activity: Collecting funds from participants to grant direct credit to borrowers through an electronic platform designated for this purpose.
Platform: The electronic platform based on the internet or any other digital means managed by the Company, through which borrowers obtain funds from the Company as the sole lender by collecting them from participants via that platform. Loan: The financial amount granted by the Company to the borrower from funds collected from participants and/or the Company via the Platform for the purpose of financing the project, in accordance with the agreed contractual terms. For the purposes of these Instructions, it includes financing granted in accordance with the provisions of Islamic Sharia. Participant: A natural or legal person who provides an amount to the Company to grant it as financing to the borrower without acquiring the status of a lender, in accordance with the agreed contractual terms. Borrower: A natural person residing in the Kingdom or a legal person registered therein who has obtained the loan, or is applying to obtain it through the Platform. Project: The project that the borrower wishes to finance through the Platform, provided that this project is in the Kingdom, and this does not include financing for any consumer purposes. Client: The participant and/or borrower dealing with the Company through the Platform. Cooling-off Period: The period during which a participant has the right to withdraw from participation in the loan, not exceeding (5) working days from the date of their participation in the loan, and subject to the provisions of Article (11) of these Instructions. Offer Period: The period during which the project is presented to participants for participation in the loan through the Platform, not exceeding (60) days from the date the project is listed on the Platform. Loan Agreement: The agreement concluded between the Company and the borrower to regulate the terms and conditions for granting the loan in accordance with the provisions of these Instructions. Participation Agreement: The agreement concluded between the Company and the participant to regulate the terms and conditions for financing the project in accordance with the provisions of these Instructions. Outsourcing: The Company's reliance on a third party, delegating to it, or utilizing its resources to manage part of its operations that fall within its responsibility. Client Account: The account opened by the Company with any licensed banks in the Kingdom to collect client funds therein for the sole purpose of allocating these funds to finance the project in accordance with the provisions of these Instructions.

b. Words and phrases contained in these Instructions shall have the meanings assigned to them in the Regulation unless the context indicates otherwise.
c. The definitions of (Electronic Record) and (Electronic Signature) contained in the effective Electronic Transactions Law shall be adopted wherever they are mentioned in these Instructions unless the context indicates otherwise.

Article (3): Scope of Application
Subject to the provisions of Articles (3/b) and (22) of the Regulation, a person shall be considered to be engaged in lending-based crowdfunding activity in the Kingdom and must obtain a license from the Bank in any of the following cases:
a. If the person engaged in lending-based crowdfunding activity is resident in the Kingdom or registered therein, or has a place of business in the Kingdom, or uses it as a center for carrying out its operations, or uses an address in the Kingdom for its correspondence. b. If the Platform advertises by any means in the Kingdom or promotes its services to residents in the Kingdom for participation in financing projects on the Platform.

Article (4) Additional Provisions and Requirements for Company Licensing
a. A company wishing to obtain a license to practice lending-based crowdfunding activity must submit a license application to the Bank in accordance with the approved form published on the Bank's website. b. In addition to what is stated in the Regulation, and specifically Articles (8/a) and (8/b) thereof, and any other relevant legislation, a company applying to practice lending-based crowdfunding activity must provide the Bank with the following:

1. The Company's proposed business model regarding the practice of lending-based crowdfunding activity, including at a minimum the Company's operating mechanism, the products and services it intends to offer, and its policy for dealing with clients and managing their accounts.
2. A template of the Loan Agreement between the Company and the borrower and a template of the Participation Agreement between the Company and the participant, which clarify the rights and obligations of clients and which the Company intends to use to regulate its relationship with clients.
3. Internal control and oversight systems commensurate with the Company's size and the nature of its operations.
4. Anti-Money Laundering and Counter-Terrorist Financing Policy.
5. Company Risk Management Policy, including a business continuity plan and emergency handling procedures.
6. Information Security and Cybersecurity Policy.
7. Conflict of Interest and Client Rights Protection Policy.
8. Outsourcing arrangements, if any.
9. Description and details of the infrastructure, technology, and data storage and hosting arrangements on the internet.
10. A legal opinion from a legal advisor indicating that the documents and templates the Company intends to use comply with the relevant requirements stated in these Instructions and any other applicable legislation.
11. Official documents issued by competent authorities confirming that the foreign parent company is established in accordance with relevant legislation and is entitled to practice lending-based crowdfunding activity according to the legislation in force in the home country, as well as to open a branch in the Kingdom.

Article (5) Technical Requirements
a. The Company must provide the necessary infrastructure, technology, and information and communication technology environment to manage and operate the Platform and provide its products and services to clients, and to provide the necessary support and maintenance for it, in accordance with the orders and instructions issued by the Bank in this regard. b. The Company must ensure that its technical systems comply with the requirements for Electronic Record and Electronic Signature contained in the effective Electronic Transactions Law, and any requirements related to information security and confidentiality, personal data protection, and cybersecurity requirements contained within relevant legislation.
c. The Company must periodically review the components of its infrastructure, technology, and information and communication technology environment, including protection methods and procedures used in carrying out operations, to ensure their soundness, improve their performance, and continuously update them, and document this.

Article (6) Board of Directors' Duties
The Board of Directors shall undertake the following duties and responsibilities:
a. Approving the policies and procedures listed below and any other policies that the Board of Directors deems necessary or required by relevant legislation:

1. Credit Policy, which shall include at a minimum the limits of granted loans, client evaluation criteria, debt burden ratio, products and services offered by the Company, in addition to target categories and the mechanism for monitoring loan repayment and collection.
2. Information Security Protection Policy, including the personal data protection policy for clients, in accordance with relevant legislation.
3. Policy for dealing with clients fairly and transparently, including a client complaint handling policy.
4. Risk Management Policy, which shall include at a minimum acceptable risk limits, the mechanism for addressing risks faced by the Company, and a description of operational and cybersecurity-related risks, in addition to the policy related to business continuity and emergency handling.
5. Procedures to ensure the efficiency and security of the technical systems used by the Company.
6. Outsourcing Policy.
7. Platform Pricing Policy.
8. Anti-Money Laundering and Counter-Terrorist Financing Policy, including the due diligence procedures the Company will follow, in accordance with relevant legislation.
9. Conflict of Interest Policy, which shall include at a minimum the mechanism for addressing conflict of interest situations, necessary measures to prevent their occurrence, and procedures followed by the Company to review transactions with clients.
   b. Verifying the establishment of adequate controls to ensure that all Company activities conducted in accordance with the provisions of Islamic Sharia comply with the provisions and principles of Islamic Sharia and the fatwas and decisions issued by the Sharia Supervisory Board, including the approval of related policies and procedures and all necessary contract and agreement templates for the Company's operations and activities.
   c. Approving the Company's exit plan, which outlines the procedures to be taken if the Company ceases its activities, provided that the plan includes a mechanism for dealing with the Company's existing loan portfolio and measures taken to protect client funds.
   d. Ensuring that the Company provides the necessary human resources, by appointing a sufficient number of qualified and experienced individuals in a manner that allows the Company to provide products and services to its clients, ensuring the preservation of their rights and serving the Company's interest in accordance with the requirements of these Instructions and effective legislation.

Article (7): Client Onboarding Procedures and Due Diligence
a. When carrying out client onboarding procedures, the Company must adhere to the following:
1. Taking necessary measures and procedures to verify client identity using information or data from neutral and reliable sources, such as identity documents for natural clients and registration certificates for legal clients, and proof of their legal status, in compliance with anti-money laundering and counter-terrorist financing requirements according to effective legislation, and due diligence procedures shall include at a minimum verifying the borrower's sources of income.
2. Establishing policies related to client due diligence procedures, including "know your customer" measures and a mechanism for verifying data provided by clients to the Company, and ensuring that this is documented.
3. Ensuring clients accept the terms of the contract and agreements signed with the Company and providing the client with a copy thereof.
4. Ensuring that the borrower bears responsibility towards the Company if they obtain the loan based on incorrect, misleading, or inaccurate information, or if they omit material data related to the loan or project.
b. For the purposes of carrying out client onboarding measures mentioned in the provisions of this Article, the Company may request the borrower to provide all necessary documents for conducting due diligence related to the borrower and the project, in accordance with relevant legislation.
c. The Company must attach to the loan offer on the Platform all documents related to the loan, in accordance with relevant legislation, and these shall include at a minimum the following:
1. Loan data report, accompanied by the borrower's consent to disclose their information within the report and publish it on the Platform.
2. The form of the loan agreement and any other documents to be concluded with the parties to the agreement regarding the loan or related guarantees.
3. A description of the nature of the products and services provided by the Company, including monitoring procedures for obtaining and repaying the loan, in addition to its duties in case of borrower default.
4. Arrangements concluded with any third party regarding any of the activities and services provided by the Company.
5. The criteria followed by the Company in pricing the loan.
6. A declaration from the borrower of the accuracy of the data contained in the loan data report and their commitment to inform the Company of any changes in the data contained therein during the offer period.
7. Potential credit risks that participants may be exposed to.
d. The Company is committed to ensuring that the documents or information obtained under due diligence procedures are up-to-date and appropriate by periodically reviewing existing client records.

Article (8): Loan Data Report
a. The borrower must submit a loan data report to the Company, and the report shall include comprehensive details about the borrower, the loan, and the project to be financed, stating the most important risks that may affect the borrower and the project and the possibility of repayment, accompanied by a declaration of the accuracy of the data contained in the loan data report, according to the form in the appendix to these Instructions, with due regard to the following:
1. The loan data report must be written in Arabic, and the report may include a translation into a foreign language that accurately reflects the content of the report, provided that the Arabic language shall prevail in case of conflict.
2. The loan data report must include a warning to the participant about the risks related to the loan granted for the purpose of financing the project, including the possibility of losing part or all of the participation value.
3. The information contained in the loan data report must be clear and not misleading.
4. Notifying the Company of any change in the information contained in the loan data report during the Company's credit assessment or during the offer period.
b. The Company must adhere to the following:
1. Verifying the completeness, accuracy, and clarity of the information contained in the loan data report. In any case, if the Company finds any error, ambiguity, or inaccuracy in the loan data report or any of the information provided in the loan application during its assessment, the Company must notify the borrower accordingly using a mechanism the Company deems appropriate, and this must be documented.
2. Verifying the participant's acceptance of the terms and conditions of the Participation Agreement, which shall include explicit provisions that its terms shall apply and become effective towards participants and the Company upon completion of loan value collection and the expiry of the cooling-off period for participants.
c. The borrower must complete or correct the information requested by the Company within (5) working days from the date of receiving the notification of error, inaccuracy, or ambiguity in the loan application. If the borrower fails to do so within the period specified in this paragraph, the Company shall suspend consideration of the loan application for a period not exceeding two working days, and if not corrected, reject the application.

Article (9) Controls for Displaying the Loan on the Platform
a. The Company must inform the borrower if the loan application is accepted, and it must obtain the following before displaying the loan on the Platform:

1. A commitment from the borrower to adhere to the loan application until the end of the offer period or until the conclusion of the loan agreement, whichever is earlier.
2. The borrower's approval of the terms and conditions of the loan agreement adopted by the Company, provided that it includes explicit provisions that it becomes effective upon completion of loan value collection and the expiry of the cooling-off period for all participants.
3. A commitment from the borrower not to apply for financing for the same project on any other crowdfunding platform during the loan offer period on the Platform.
   b. The Company must display any project for financing on the Platform according to the chronological order of the loan application acceptance date and its completion of the requirements stated in this Article. No project may be given priority or preferential advantages on the Platform in exchange for commissions or any other benefit collected by the Company from the borrower or others.

Article (10) Offer Period
a. The Company is committed to displaying the loan on the Platform for the agreed offer period, which may be extended for another period(s) upon the borrower's request, provided that the total does not exceed (60) days. b. The Company must stop displaying the loan on the Platform in the following cases:

1. Completion of loan value collection and the expiry of the cooling-off period for each participant.
2. Failure to collect the full loan amount during the offer period, and the loan may not be granted for an amount less than the value specified in the loan application.
3. Inaccuracy of any of the data or documents provided by the borrower.
   c. In case of cancellation of the loan offer via the Platform for any reason, the Company must inform the participants in the loan within two working days and refund the value of the funds collected from the participants, as appropriate, within a period not exceeding (7) working days from the date of loan cancellation.

Article (11) Cooling-off Period
a. The Company must include a clause in the Participation Agreement concluded between the Company and the participant stating the participant's right to withdraw from participation in the loan during the cooling-off period, by notifying the Company through the communication means specified by it. However, after the expiry of the cooling-off period, the participant does not have the right to withdraw their participation in the loan. b. In case of a participant's withdrawal during the cooling-off period, the Company is committed to refunding the full amount contributed by the participant within a period not exceeding two working days from the date of their withdrawal.
c. Notwithstanding what is stated in paragraph (a) of this Article, a participant does not have the right to withdraw if they participate during the last (5) days of the offer period, and the Company must warn the participant of this.
d. If the Company participates in the loan, it does not have the right to withdraw from its participation.

Article (12) Lending Limits:
a. The total cumulative participation of a participant across platforms in the Kingdom must not exceed (15%) of their annual net income for a natural person or (30%) of their net assets for a legal person. The Company must verify the availability of this amount through the declaration submitted by the participant and request them to provide supporting documents for this declaration. b. The participation ratio must not exceed (25%) of the total value of a single loan, and must not be less than (5%) of the total value of the loan.
c. If the Company participates in the project, its participation must not exceed (10%) of the value of a single loan. However, it may participate at a higher percentage if the loan value is not covered during the offer period, provided that it does not exceed (30%) of the total loan value in any case.
d. The Bank may issue decisions to amend the aforementioned percentages as it deems appropriate.

Article (13) Loan Application
The borrower must fill out the loan application according to the approved form at the Company, and it must be complete with the following documents:
a. Loan data report filled out in accordance with Article (8) of these Instructions. b. Borrower's authorization to inquire about their credit status with licensed credit information companies in the Kingdom.
c. A commitment from the borrower to notify the Company of any change in the information contained in the loan data report or any material information that could negatively affect their financial and/or legal status and their ability to repay.
d. A declaration from the borrower that the information provided in the application is correct and not misleading. e. Any other documents and/or data that the Company deems necessary according to its approved policy and/or in implementation of any requirements stipulated by effective legislation.

Article (14) Loan Agreement and Participation Agreement
a. The Company must prepare templates for the Loan Agreement and Participation Agreement with clients in Arabic and in a clear and understandable manner for clients. The Company may prepare the agreements in a foreign language in addition to Arabic, provided that Arabic is the primary language of application in case of conflict between the Arabic and foreign versions. b. The Company must draw up a written loan agreement, either in paper or electronic form, between the Company and the borrower, and this agreement must include in detail all data related to the loan, including the following:
1. Data of the parties to the loan agreement, loan value, and loan term.
2. Purpose of the loan and description of the project.
3. Procedures to be taken by the Company in case of default and/or breach and/or termination of the agreement.
4. Repayment period and mechanism.
5. Details of interest or return and its calculation mechanism.
6. Commissions charged by the Company.
7. Required guarantees and collateral, if any.
8. The borrower's commitment to inform the Company, which in turn is committed to informing participants, of any changes in their financial and/or legal status that may affect their ability to repay or any material changes related to their activities.
9. The borrower's commitments to provide any documents or information requested by the Company, including financial statements for legal persons.
c. The Company must grant the loan to the borrower within a period not exceeding (3) working days from the date of completion of loan value collection and the expiry of the cooling-off period for all participants, provided that the borrower completes the signing of all legal documents and any other requirements related to the loan as appropriate.
d. The Company must provide the borrower with a copy of the loan agreement and any contractual terms or conditions concluded with them regarding the services provided through the Platform. e. The Company must draw up a written participation agreement, either in paper or electronic form, between the Company and the participants, and the agreement must include all data related to the loan, and at a minimum the following:
1. Information of the parties to the participation agreement, its term, which shall not exceed the loan term, the loan value, and the cooling-off period, in accordance with the provisions of these Instructions.
2. A description of the project, including information related to the borrower and the risks associated with the project, clearly and in detail.
3. Profits and/or returns resulting from participation and their distribution mechanism, and including in the agreement that they do not constitute a guaranteed obligation.
4. Procedures to be taken in case of default or delay in repayment.
5. Mechanism for dispute resolution and handling of participant complaints.
6. Commissions due from participants to the Company for its services in managing the loan.
7. Conditions for withdrawal from the agreement.
8. Participant's acknowledgment of having reviewed and accepted the risks associated with participation in the loan.
f. The Company must comply with electronic signature requirements, taking into account the provisions of the effective Electronic Transactions Law, in case of concluding agreements with borrowers and/or participants electronically. g. The Company must obtain the Bank's approval if it amends any of the contract templates and participation agreements with clients used by it.

Article (15) Conditions for Loan Participation
a. Before accepting a participant's request to participate in a loan, the Company must verify the following:
1. The participant does not exceed the participation limits stipulated in these Instructions.
2. The participant is educated and informed about the risks associated with the loan participation process and their right to withdraw from participation during the cooling-off period.
3. The full amount desired by the participant is paid in a single installment within a period not exceeding (24) hours from the date of participation after verifying the matters stated in paragraphs (a-1) and (a-2) of this Article.
4. The participant is enabled to review the terms and conditions of the loan agreement, whose provisions will apply and become effective for all relevant parties upon completion of loan value collection and the expiry of the cooling-off period for participants.
5. Legal persons participants have obtained the necessary approvals and decisions in accordance with their articles of association and bylaws.
b. Means of participation in and repayment of the loan are limited to electronic channels, and cash transactions are prohibited.
c. If the Company participates with its own funds, it must adhere to the following:
1. The Company's participation in the loan must not lead to a conflict of interest between it and the borrowers or other participants, taking into account what is stated in Article (19) of these Instructions.
2. Commitment to apply policies and procedures to all granted loans as appropriate without giving preference or priority to loans in which it participates in financing, including not requesting additional guarantees or conditions on loans in which it participates or giving priority to loans in which it participates in collection and follow-up.
3. Disclosure of loans displayed on the Platform that it finances with its own funds or through any of its subsidiaries or affiliates, after the end of the offer period and the start of project work.

Article (16) Company's Rejection of Loan Application
a. The Company must reject the loan application in any of the following cases:

1. The borrower fails to provide the necessary information and documents for the purpose of displaying the loan on the Platform.
2. The borrower refuses to provide supporting documents for the loan data report.
3. If the borrower's creditworthiness assessment does not qualify them for the loan.
4. Failure to correct the loan report data that contains incorrect, misleading, or inaccurate information or data in accordance with the provisions of Article (8/c) of these Instructions.
5. Any other cases the Company deems appropriate at its discretion.
   b. The Company shall inform the borrower of the reason for rejecting the loan by means it deems appropriate, and this must be documented.

Article (17) Protection of Client Funds
a. In the context of practicing its activity, the Company must open accounts with licensed banks in the Kingdom for each project separately from its own accounts, in accordance with the agreements and contracts signed with clients, according to the following procedures:

1. A "Client/Participant Funds" account designated for amounts collected from participants. The Company must inform the Bank that the funds deposited in this account belong to participants and include this in the account opening agreements concluded between the Company and the Bank.
2. After completion of financing collection, these amounts are transferred to an account designated for the purpose of granting and managing the loan by the Company through the Platform and collecting payments repaid by the borrower.
3. The Company is committed to transferring collected payments to the "Client/Participant Funds" account according to the period and mechanism stipulated in the agreements regulating this purpose.
   b. The funds in the accounts referred to in this Article are not subject to any pledging, attachment, liquidation, or insolvency procedures that may be imposed on the Company.
   c. The Company must include in the account opening agreements with banks all necessary clauses to comply with anti-money laundering and counter-terrorist financing requirements according to effective legislation, in addition to ensuring the necessary mechanisms for the readiness of these accounts for fund collection and lending, prerequisite conditions, authorized signatories, and approvals for transfer operations.
   d. The Company guarantees taking necessary measures to protect client funds, including ensuring the independence of client funds from the Company's funds. The Company is prohibited from using client funds for any purposes other than those related to granting loans through the Platform. e. The Company is prohibited from obtaining any interest or returns on funds held in client accounts with banks, and this must be included in the account opening agreements concluded between the Company and the banks. f. The Company is prohibited from holding funds in client accounts as fixed deposits or obtaining any credit facilities or bank loans secured by funds deposited in these accounts, and this must be included in the account opening agreements concluded between the Company and the banks. g. The Company is committed to separating its accounts from client accounts when presenting bank balances in its financial statements and related disclosures. h. The Company is prohibited from making any transfers or offsets between its client accounts except for transactions related to the same loan.
   i. Client accounts must be audited monthly by an external legal accountant.

Article (18) Client Complaint Handling
The instructions "Internal Procedures for Handling Complaints of Financial and Banking Service Providers' Clients" No. (1/2017) dated 28/8/2017 or any other instructions replacing them shall apply.

Article (19): Conflict of Interest
a. The company is prohibited from offering any project on the platform that is owned by the company, or by any of its board members or their representatives, or any person related to any of them by kinship up to the second degree, or any of the company's Sharia Supervisory Board members, or any of the company's employees, or the company's external auditor, or its legal advisor, or any person with a significant direct or indirect interest in the company. It is also prohibited to finance any project owned by any of the company's subsidiaries. b. The company is prohibited from marketing a specific project or directly directing participants to participate in financing a specific project displayed on the platform to the exclusion of others.
c. The company is prohibited from providing any advice to its clients regarding projects displayed on the platform.
d. The company is prohibited from granting any preference or priority to any client in exchange for obtaining a benefit in any form. The company must take the necessary measures under the effective legislation and professional conduct rules to limit conflicts of interest to ensure fair treatment among clients. e. Shareholders of the company, board members and/or their representatives, Sharia Supervisory Board members, any of the company's employees, the company's external auditor, or its legal advisor are prohibited from participating in the loan offered on the platform.

Article (20): Disclosures
The company is obligated to publish and periodically review the following information on the platform, clearly, understandably, and without misleading:
a. A general overview of the company, including its activities and management. b. Details of commissions and other costs charged by the company.
c. An overview of the products and services provided by the company to clients through the platform, including an explanation of how to use the platform, terms and conditions, and privacy policy, and specifically including details on the policy for monitoring loan repayment and working to collect them in case of borrower default.
d. Suitability and eligibility criteria for clients adopted by the company. e. Mechanism for handling client funds. f. Policy for dealing with clients fairly and transparently, including the policy for handling client complaints. g. Information security protection policy, including the personal data protection policy for clients. h. Anti-Money Laundering and Counter-Terrorist Financing policy.
i. Conflict of interest policy.
j. Mechanism and criteria for pricing the loan offered through the platform. k. Numbers and statistics on the company's operations, at a minimum, the number and volume of loans granted, the average profit rate achieved by participants, and the default rate from the total portfolio, on an annual basis.
l. A warning to participants about the risks associated with participation, especially regarding the possibility of losing participation funds through the platform in case of borrower default and/or failure to repay.
m. A warning to borrowers about the financial and legal consequences they face in case of default and/or breach. n. The company's pledge not to exploit funds collected from participants for any purposes other than what is agreed upon between the company and the participants. o. Any other information and/or forms and/or data, including contract templates, agreements, and terms of service.

Article (21): Outsourcing
a. When entering into outsourcing contracts for part of its activities, the company must adhere to the following:
1. Take necessary measures and procedures to avoid exposure to additional operational risks as a result of this outsourcing.
2. The outsourcing arrangements concluded by the company with a third party must include the conditions to be adhered to by all relevant parties, in accordance with the provisions of these instructions or any effective legislation related to the company's operations or its obligations towards its clients.
3. Outsourcing must not negatively affect the level of internal control in the company or the Bank's ability to exercise oversight over its activities.
b. The company must notify the Bank in case of entering into or terminating material outsourcing arrangements. Outsourcing arrangements are considered material in any of the following cases:
1. If the failure to implement the outsourcing arrangements leads to a complete or partial cessation of the company's operations or the platform, or negatively affects the company's financial position.
2. If the outsourcing arrangements affect the company's ability to pay client funds or manage loans and monitor their repayment and collection.
c. The company may not outsource the granting of loans to borrowers from its own funds or the credit assessment and study of loan applications submitted through the platform.
d. The Bank may, at any time, reject material outsourcing arrangements concluded by the company with a third party and may request the immediate termination of such contract or as it deems appropriate. e. The company is prohibited from outsourcing any of its operations to a third party outside the Kingdom without prior written approval from the Bank, according to the conditions and requirements specified by the Bank. f. The company is responsible for ensuring that all parties contracted with it comply with the provisions of these instructions and related legislation. The company also bears all losses and/or damages resulting from any act committed by any of the parties contracted with it and/or outsourcing entities, and must ensure this in the concluded contracts, especially regarding client contracts.

Article (22): Bank Guarantee
a. The company must, before the final licensing approval is issued, provide a bank guarantee to the Bank to ensure its compliance with the provisions of the system and the instructions issued thereunder, according to the following conditions:

1. The guarantee must be issued in the name of the Governor, in addition to his position, by a licensed bank in the Kingdom, and must be unconditional and irrevocable.
2. Its value must not be less than [5%] of the company's authorized capital.
   b. Notwithstanding what is stated in this article, the Bank may, at any time, request the company to increase the value of the guarantee provided by it or to provide new financial guarantees/collaterals, to cover any potential risks the company may be exposed to, and as determined by the Bank for each case individually.

Article (23): The company must provide the Bank with any documents, reports, or papers requested by it within the specified deadlines.

Governor
Dr. Adel Al-Sharkas

Appendix
Loan Data Report Template
The borrower is obligated to prepare a loan data report, taking into account the following:

1. The report must include accurate and up-to-date information, using clear language free from ambiguity or misleading statements.
2. The report must contain all data listed in this appendix, displayed in parts in the order below.
3. The report must be printed in a clear, readable font.
4. A larger font and different color must be used for warnings in the report.

Loan Data Report Template
Main Page
Titled as follows:
Loan Data Report
For financing the project [Project Name] of [Borrower Name]

First: Borrower and Project Information

1. Borrower's name, legal form, capital (as per actual situation), registration date, place of business, and address.
2. Natural and legal persons responsible for managing the project, including those in charge of project management.
3. Borrower's main activities.
4. Borrower's financial statements.
5. An economic feasibility study including an accurate description of the project.
6. The following acknowledgment from the borrower:
   "I/We acknowledge that all information and data contained in this report are accurate and complete for the purpose of enabling participants to make an informed decision to participate in the loan and do not, to our knowledge, contain any incorrect, inaccurate, or misleading information."
7. A clear indication of the cooling-off period available to participants.
8. A warning to participants indicating that this financial product may not be suitable for them and may lead to the loss of all or part of the participation value and/or profit or return from participation.

Second: Loan Information

1. The value of the loan requested to be collected through the lending-based crowdfunding platform.
2. The deadline for obtaining the loan value and the loan offering period.
3. Information about the procedures to be taken if the loan value is not collected during the offering period.
4. Amounts to be allocated from the borrower's funds or through other financing sources for loan repayment.
5. Any facilities/financing obtained for the project.
6. Interest rates or returns to be paid.
7. Guarantees or collateral to be provided by the borrower.
8. Repayment schedule for the principal loan amount and interest or return.
9. Any delay in repayment of any facilities/financing by the borrower during the past five years.

Third: Risks
A statement of the main risks associated with financing the project, risks related to the borrower's business sector and the project, and any other major risks with a material impact on the loan and/or the project.

Fourth: Commissions, Information, and Legal Recourse

1. Commissions and any other costs that the participant may incur as a result of participation or receiving repaid amounts and profit or return.
2. Mechanism for obtaining additional information about the loan, project, and borrower.
3. How to submit a complaint by the participant.

Loan Management Information Report at the Company Loan Management Information

1. Key elements of the internal methodology for assessing credit risks of the project and the loan.
2. The credit assessment basis followed by the company.
3. Loan management and collection services provided by the company.
4. Commissions to be paid by the borrower or participant.