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Guidelines for Islamic Modes of Finance, SBP

L consult with the institution in any matter

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l) consult with the Institution in any matter, including but not limited to insurance of the assets Modaraba with a view to determining the policy to be followed in order to ensure the proper implementation of this Agreement, but without any obligation of the Client to compromise rights of the Client hereunder. m) under its sole responsibility, conduct the Project in conformity with all applicable civil and criminal laws. n) conduct the Project without violation of the principles of the Islamic Shariah. file:///C|/Documents and Settings/Administrator/D...nes for Islamic Modes by SBP/mudaraba finance.htm (4 of 8) [2/24/2008 12:04:28 AM]
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State Bank of Pakistan - The Central Bank o) it will satisfactorily insure all its insurable assets of the Project with reputable companies offering protection under the Islamic concept of Takaful. Until the Islamic concept of Takaful is not available the such assets shall be comprehensively insured (with a reputable insurance company to the satisfaction of the Institution) against all insurable risks, which may include fire, arson, theft, accidents, collision, body and engine damage, vandalism, riots and acts of terrorism, and to assign all policies of insurance in favour of the Institution to the extent of the amount from time to time due under this Agreement, and to cause the notice of the interest of the Institution to be noted on the policies of insurance, and to punctually pay the premium due for such insurance s and to contemporaneously therewith deliver the premium receipts to the Institution. Should the Client fail to insure or keep insured the aforesaid and/or to deliver such policies and premium receipts to the Institution, then it shall be lawful for the Institution but not obligatory to pay such premia and to keep the Secured Assets so insured and all cost charges and expenses incurred by it for the purpose shall be charged to and paid by the Client as if the same were part of the monies due. The Client expressly agrees that the Institution 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; 7. GENERAL COVENANTS OF THE INSTITUTION The Institution undertakes to the Client that it shall: a) make all payments of Finance required of the Institution under this Agreement to the Account on the Draw-Down Dates.
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