Shall be entitled to adjust settle or compromise any

shall be entitled to adjust, settle or compromise any dispute with
the insurance company(ies) and the insurance arising under or
in connection with the policies of insurance and such
adjustments/compromises or settlements shall be binding on the
Client and the Institution shall be entitled to appropriate and
adjust the amount, if any received, under the aforesaid policy or
policies towards part or full satisfaction of the Client's
indebtedness arising out of the above arrangements and the
Client shall not raise any question or objection that larger sums
might or should have been received under the aforesaid policy
nor the Client shall dispute its liability(ies) for the balance
remaining due after such payment/adjustment;
(e) Except as required in the normal operation of its business,
the Client shall not, without the written consent of the
Institution, sell, transfer, lease or otherwise dispose of all or a
sizeable part of its assets, or undertake or permit any merger,
consolidation, dismantling or re organization which would
materially affect the Client ’ s ability to perform its obligations
under any of the Principal Documents;
(f) The Client shall not (and shall not agree to), except with the
written consent of the Institution, create, incur, assume or suffer
to exist any Lien whatsoever upon or with respect to the
Secured Assets and any other assets and properties owned by
the Client which may rank superior, pari passu or inferior to the
security created or to be created in favour of the Institution
pursuant to the Principal Documents;
(g) It shall forthwith inform the Institution of:
(i) Any event or factor, any litigation or
proceedings pending or threatened against the
Client which could materially and adversely affect
or be likely to materially and adversely affect:
(a) the financial condition of the
Client;
(b) business or operations of the
Client; and
(c) the Client ’ s ability to meet its
obligations when due under any of
the Principal Documents;
(ii) Any change in the directors of the Client;
and Settings/Administrator/D...uidelines for Islamic Modes by SBP/murabaha 1.htm (6 of 10) [2/23/2008 11:45:37 PM]

State Bank of Pakistan - The Central Bank
(iii) Any actual or proposed termination,
rescission, discharge (otherwise than by
performance), amendment or waiver or
indulgence under any material provision of any of
the Principal Documents;
(iv) Any material notice or correspondence
received or initiated by the Client relating to the
License, consent or authorization necessary for
the performance by the Client of its obligations
under any of the Principal Documents
8. CONDITIONS PRECEDENT
8.01 The obligation of the Institution to pay the Cost Price shall
be subject to the receipt by the Institution (in form and
substance acceptable to the Institution) at least ___ Business
Days prior to the Value Date of:
(i) Documentary evidence that:
(a) This Agreement and the
Agency Agreement (should the
Institution appoint the Client as its
Agent) have been executed and
delivered by the Client;
(b) The Client ’