Guidelines for Islamic Modes of Finance, SBP

No event or circumstance which constitutes or which

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Unformatted text preview: No event or circumstance which constitutes or which with the giving of notice or lapse of time or both would constitute an Event of Default shall have occurred and be continuing or is likely to occur and that the payment of the Contract Price shall not result in the occurrence of any Event of Default;; (e) Delivery by the Manufacturer/Supplier to the Institution of a true and complete extract of all relevant parts of the minutes of a duly convened meeting of its Board of Directors approving the Principal Documents and granting the necessary authorizations for entering into, execution and delivery of the Principal Documents which shall be duly signed and certified by the person authorized by the Board of Directors ’ ; and (f) All fees, commission, expenses required to be paid by the Manufacturer/Supplier have been received by the Institution. 8.03 Any condition precedent set forth in this Clause 8 may be waived and or modified by the mutual written consent of the parties hereto. 9. EVENTS OF DEFAULT AND TERMINATION 9.01 There shall be an Event of Default if in the opinion of the Institution: a) The Manufacturer/Supplier fails to deliver the Goods as per delivery schedule agreed under this Agreement; b) Any representation or warranty made or deemed to be made or repeated by the Manufacturer/Supplier in or pursuant to the Principal Documents or in any document delivered under this Agreement is found to be incorrect; c) Any Indebtedness of the Manufacturer/Supplier in excess of Rs.__________ (Rupees ________________only) is not paid when due or becomes due or capable of being declared due; d) Any authority of or registration with governmental or public bodies or courts required by the Manufacturer/Supplier in connection with the execution, delivery, performance, validity, enforceability or admissibility in evidence of the Principal Documents are modified in a manner unacceptable to the Institution or is not granted or is revoked or otherwise ceases to be in full force and effect; e) The total interruption or cessation of the business activities of the Manufacturer/Supplier; f) Any costs, charges and expenses under the Principal Documents shall remain unpaid for a period of _______ days after notice of demand in that behalf has been received by the Manufacturer/Supplier from the Institution; 9.02 Notwithstanding anything contained herein, the Institution may without prejudice to any of its other rights, at any time after the happening of an Event of Default by notice to the Manufacturer/ Supplier declare that: file:///C|/Documents and Settings/Administrator/De.../Guidelines for Islamic Modes by SBP/istisna/1.htm (7 of 11) [2/23/2008 11:58:33 PM] State Bank of Pakistan - The Central Bank a) The obligation of the Institution to take delivery of the Goods from the Manufacturer/Supplier and pay the Contract Price to the Manufacturer/Supplier shall be terminated, forthwith; and/or b) The entire amount of the Contract Price or such part thereof against which the Goods have not been delivered to the Institution by the Manufacturer/...
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