Guidelines for Islamic Modes of Finance, SBP

For making payment to the supplier the bank should

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Murabaha Document # 4. (For making payment to the Supplier the bank should prepare a Pay Order/Cross cheque, etc in the name of Supplier that should be handed over to him through client/agent. The supplier should issue invoice in the name of Bank Account Client e.g. 1st Islamic Bank ABC Company . This way, the problem of claiming Sales or other Taxes Refund could be solved easily). 2.02 Upon receipt of purchase of Goods by the Institution, directly or through an Agent, from the Supplier, the Goods shall be at the risk and cost of the Institution until such time that these Goods are sold to the Client, to be evidenced by the acceptance, duly signed and endorsed by the Institution in Part- III of the Declaration. 2.03 After the purchase of Goods by the Institution, the Client and Settings/Administrator/D...uidelines for Islamic Modes by SBP/murabaha 1.htm (3 of 10) [2/23/2008 11:45:37 PM]
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State Bank of Pakistan - The Central Bank shall offer to purchase the Goods from the Institution at the Contract Price in the manner provided in the Part-II of the Declaration. 2.04 The Client s purchase of Goods from the Institution shall be effected by the exchange of an offer and acceptance between the Client and the Institution as stipulated in the Declaration. 3. SECURITY 3.01 As security for the indebtedness of the Client under this Agreement, the Client shall:- (a) Furnish to the Institution collateral(s)/security (ies), substantially in the form and substance attached hereto as Murabaha Document # 7; (b) Execute such further deeds and documents as may from time to time be required by the Institution for the purpose of more fully securing and or perfecting the security created in favour of the Institution; and (c) Create such other securities to secure the Client s obligations under the Principal Documents as the parties hereto, may by mutual consent agree from time to time. (The above are hereinafter collectively referred to as the " Security "). 3.02 In addition to above, the Client shall execute a demand promissory note in favour of the Institution for the amount of the Contract Price (the "Promissory Note"); (The Security and the Promissory Note are hereinafter collectively referred to as the " Security Documents "). 4. FEES AND EXPENSES The Client shall pay to the Institution on demand within 15 days of such demand being made, all expenses (including legal and other ancillary expenses) incurred by the Institution in connection with the negotiation, preparation and execution of the Principal Documents and of amendment or extension of or the granting of any waiver or consent under the Principal Documents. 5. PAYMENT OF CONTRACT PRICE 5.01 All payments to be made by the Client under this Agreement shall be made in full, without any set-off, roll over or counterclaim whatsoever, on the due date and when the due date is not a Business Day, the following Business Day and save as provided in Clause 5.02, free and clear of any deductions or withholdings, to a current account of the Institution as may be
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  • Fall '11
  • GARYMILLER
  • Finance, Institution, state bank, Islamic modes

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