Guidelines for Islamic Modes of Finance, SBP

Therefore the parties hereto agreed upon the

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Unformatted text preview: THEREFORE , the parties hereto agreed upon the following: 1. The Rab Al-Maal hereby agrees to entrust to the Mudarib an amount of (currency and amount) to be invested together with the other investors ’ funds for the purpose of acquisition of the Goods specified in the Murabaha Financing Agreement. Such amount shall be remitted to the Mudarib upon written request sent by the Mudarib to the Rab-al-Maal. The said remittance shall be made at least four (4) working days before the effective date of Murabaha financing. 2. The Mudarib undertakes to invest the amount entrusted to it by the Rab Al- file:///C|/Documents and Settings/Administrator/D... for Islamic Modes by SBP/syndicated mudaraba.htm (1 of 3) [2/24/2008 12:05:45 AM] State Bank of Pakistan - The Central Bank Mall together with the funds of the other investors in the acquisition of the Goods in accordance with the terms and conditions of the Murabaha Financing Agreement. All the Murabaha Financing documents will be made out in the name of the Mudarib, and will be held by him on behalf of the Rab Al-Mall and the other investors. 3. The Rab Al- Maal has independently studied and is satisfied with the Murabaha financing. The liability of the Rab Al-Mall is, however, limited to the funds entrusted to the Mudarib in accordance with this Agreement. 4. The Mudarib undertakes to maintain the funds entrusted to it separate from its own assets and away from the claims of its creditors. 5. The profit generated from Murabaha Financing Agreement shall be distributed on a pro-rata basis to the investors including the Rab Al-Maal as follows: (i) [ ] % of the profit on a pro-rata basis to the Rab Al-Maal; (ii) [ ] % of the profit to the Mudarib. The profit distribution formula given above may be amended by the mutual written agreement of both parties. 6. The Mudarib shall pay to the Rab Al-Maal its part in the profit received with respect to the investments made in accordance with the Murabaha Financing Agreement not later than the following business day as of the date of any payment received whether on principal, profit or any other account whatsoever. 7. The Mudarib ’ s obligations to make payments to the Rab Al-Maal under this Agreement in respect of the Rab Al-Maal ’ s investment is conditional upon the Mudarib receiving the corresponding payments from the Client in accordance with the Murabaha Financing Agreement dated ………………… . 8. It is understood and acknowledged by the Mudarib that any collateral or security held in the Mudarib ’ s name is for the benefit of the Mudarib, the Rab Al-Maal and the other investors on a pro-rata basis. 9. As provided by the Islamic Sharia, the Mudarib is liable for any loss of the capital invested under this Agreement only if it is proven that the Mudarib has breached the conditions of this Agreement or proven to be negligent in keeping or managing the said capital. 10. In case of default of the client, the Mudarib shall inform the Rab Al – Maal and the other investors and take necessary action on their behalf as it deems fit to protect their interest....
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THEREFORE the parties hereto agreed upon the following 1...

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