Guidelines for Islamic Modes of Finance, SBP

S shariah board approves essentials and model

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Unformatted text preview: s Shariah Board Approves Essentials and Model Agreements for Islamic Modes of Financing BACK Essentials of Islamic Modes of Financing Murabaha Facility Agreement Musawamah Facility Agreement Lease Agreement Salam Agreement Musharaka Investment Agreement Istisna Agreement Agreement for Interest free Loan Mudaraba Financing Agreement Syndication Mudaraba Agreement In the Name of Allah, the Merciful, the Compassionate MUSHARAKA INVESTMENT AGREEMENT (For Incorporated Companies) | Musharaka Investment Agreement | Musharaka Investment Agreement-1 | | Musharaka Investment Agreement-2 | THIS AGREEMENT IS MADE AT_______________ this _________ day of _____________ 2000 BETWEEN ___________________Limited, a duly incorporated company having its registered office at _____________hereinafter referred to as “ the Client ” (which expression shall wherever the context so requires or permits mean and include its successors-in-interest and assigns) of the ONE PART AND _________________Institution (or financial institution), a duly incorporated banking company (or financial institution) having its registered office at __________ hereinafter referred to as “ the Institution ” (which expression shall wherever the context so requires or permits mean and include its successors-in- interest and assigns) of the OTHER PART: WHEREAS the parties hereto have agreed that the Institution shall provide finance to the Client on profit and loss sharing basis on the terms and conditions hereinafter appearing. NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS UNDER: - 1. PURPOSE AND DEFINITIONS This Agreement sets out the terms and conditions upon and subject to which the Institution has agreed to finance the Client by way of Musharaka investment. 1.02 In this Agreement, unless the context otherwise requires: "Business Day" means a day, on which Banks are open for normal business in Pakistan, file:///C|/Documents and Settings/Administrator/D...idelines for Islamic Modes by SBP/musharaka/1.htm (1 of 7) [2/23/2008 11:57:15 PM] State Bank of Pakistan - The Central Bank “ Client ’ s Investment ” mean is defined in clause 4 (ii), “ Financial Statements ” shall mean the client ’ s Balance Sheet, Profit & Loss Account, Cash Flow statement and statement of changes in equity. “ Institution ’ s Investment ” is defined in Clause 2, “ 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, “ Musharaka Capital ” means the sum of Client ’ s Investment, Institution ’ s Investment and the other PLS Funds, if any; “ NBFIs ” means non-banking financial institutions as notified from time to time by SBP or SECP “ Other PLS Funds ” is defined in clause 4(iii) "Parties" means the parties to this Agreement,...
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s Shariah Board Approves Essentials and Model Agreements...

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