Guidelines for Islamic Modes of Finance, SBP

(hereinafter referred to as the"institution"

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Unformatted text preview: ________________________________________________________, (hereinafter referred to as the "Institution" which expression shall where the context so permits mean and include its successors in interest and assigns) of the other part. IT IS AGREED BY THE PARTIES as follows: 1. PURPOSE AND DEFINITIONS 1.01 This Agreement sets out the terms and conditions upon and subject to which the Institution has agreed to purchase the Goods from time to time from the Suppliers and upon which the Institution has agreed to sell the same to the Client from time to time by way of Musawamah facility. 1.02 In this Agreement, unless the context otherwise requires: "Act" means the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 or any statutory modification or re- promulgation thereof; "Agent" means the person appointed under the terms of the Agency Agreement; file:///C|/Documents and Settings/Administrator/...delines for Islamic Modes by SBP/musawamah/1.htm (1 of 11) [2/23/2008 11:51:13 PM] State Bank of Pakistan - The Central Bank "Agency Agreement" means the Agency Agreement between the Institution and the person appointed as Agent (which may be the Client) as provided in the Musawamah Document # 2; "Business Day" means a day on which banks are open for normal business in Pakistan; "Cost Price" means the amount which may be incurred by and/or on behalf of the Institution for the acquisition of Goods plus all costs, duties, taxes and charges incidental to and connected with acquisition of Goods; "Contract Price" means the price payable by the Client to the Institution for Goods as stipulated in Part-III of the Declaration (Musawamah Document # 5) to be issued by the Institution from time to time; "Declaration" means Declaration as set out in Musawamah Document # 5; "Event of Default" means any of the events or circumstances described in Clause 9 hereto; "Goods" means the Goods as may be specified in the Purchase Requisition(s) to be issued by the Client from time to time; "Indebtedness" means any obligation of the Client for the payment or any sum of money due or, payable under this Agreement; "License" means any license, permission, authorization, registration, consent or approval granted to the Client for the purpose of or relating to the conduct of its business; "Lien" shall mean any mortgage, charge, pledge, hypothecation, security interest, lien, right of set- off, contractual restriction (such as negative covenants) and any other encumbrance; "Payment Date" or "Payment Dates" means the respective dates for the payment of the installments of the Contract Price or part thereof by the Client to the Institution as specified in Musawamah Document # 6 hereto, or, if such respective due date is not a Business Day, the next Business Day; "Profit" means any part of the Contract Price which is not a part of the Cost Price; "Parties" mean the parties to this Agreement; "Principal Documents" means this Agreement, the Agency Agreement; and the Security Documents; "Promissory Note" is defined in Clause 3.02 and is defined in Clause 3....
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(hereinafter referred to as the"Institution" which...

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