Guidelines for Islamic Modes of Finance, SBP

As security for the performance of this agreement by

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As security for the performance of this Agreement by the Manufacturer/Supplier under this Agreement, the Manufacturer/ Supplier shall: (a) Furnish to the Institution a collateral (s), substantially in the form and substance attached hereto as ______, (the "_______"); (b) Execute such further deeds and documents as may from time to time be required by the Institution for the purpose of more fully securing and or perfecting the security created in favour of the Institution; and (c) Create such other securities to secure the Manufacturer s/Supplier s obligations under the Principal Documents as the parties, hereto, may by mutual consent agree from time to time. (The above are hereinafter collectively referred to as the "Security"). 3.02 In addition to above, the Manufacturer/Supplier shall execute a demand promissory note in favour of the Institution for the amount of the Contract Price (the "Promissory Note"); (The Security and the Promissory Note are hereinafter collectively referred to as the "Security Documents") 4. FEES AND EXPENSES It is understood each party shall bear the fees and expenses incurred from its own account: (i) in connection with the negotiation, preparation and execution of the Principal Documents and of amendment or extension of or the granting of any waiver or consent under the Principal Documents and (ii) in contemplation of or otherwise in connection with, the enforcement of, or preservation of any rights under the Principal Documents 5. PAYMENT OF CONTRACT PRICE Payments to be made to the Manufacturer/Supplier under this Agreement shall be made after adjustment of such withholding that the Institution is required to deduct and Settings/Administrator/De.../Guidelines for Islamic Modes by SBP/istisna/1.htm (3 of 11) [2/23/2008 11:58:33 PM]
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State Bank of Pakistan - The Central Bank under various laws in force. The Institution shall promptly deliver to the Manufacturer/Supplier any receipts, certificates or other proof evidencing the amounts (if any) paid or payable in respect of any deduction or withholding as aforesaid; 6. REPRESENTATIONS AND WARRANTIES a) The financial statements together with the notes to the accounts and all contingent liabilities and assets that are disclosed therein represent a true and fair financial position of the business and to the best of the knowledge of the Manufacturer/Supplier, its directors and principal officers and there are no material omissions and or mis- representations; b) All requisite corporate and regulatory approvals required to be obtained by the Manufacturer/Supplier in order to enter into the Principal Documents are in full force and effect c) No material litigation, arbitration or administrative proceedings is pending or threatened against the Manufacturer/Supplier or any of its assets; d) It shall inform the Institution within ---------- Business Days of an event or happening which may have an adverse effect on the financial position of the Manufacturer/Supplier, whether such an event is recorded in the financial statements or not as per applicable International Accounting Standards[, as applicable in Pakistan].
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  • Fall '11
  • Finance, Institution, state bank, Islamic modes

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