Guidelines for Islamic Modes of Finance, SBP

12 management and control subject only to the express

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12. MANAGEMENT AND CONTROL Subject only to the express terms of this Agreement, complete management and control of the Project is exclusively vested in the Client and the Client shall be solely responsible for the management and control of the Project. 13. ASSUMPTION OF MANAGEMENT OF THE PROJECT BY THE INSTITUTION The Institution shall have the right to terminate by notice the powers of the Client to manage the Project and assume the same if the Client violates any obligation hereunder, or if for any cause the results of the Project depart in a material adverse manner from those projected by the Client in the Cash Flow and Revenue Projections. In such event: a) The Client shall be entitled to receive his share of the profit, if any, until the date of termination stated in the notice. Thereafter, the Institution shall be entitled to the whole profit. b) The assumption of management by the Institution shall not file:///C|/Documents and Settings/Administrator/D...nes for Islamic Modes by SBP/mudaraba finance.htm (6 of 8) [2/24/2008 12:04:28 AM]
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State Bank of Pakistan - The Central Bank discharge the Client of any obligation hereunder other than the obligation to render the Management Services. c) The assumption of management by the Institution with respect to the Project shall in no event be deemed to affect the liability of the Client to the Institution, with respect to any other facilities granted under any other agreement between the Client and the Institution whether or not the proceeds of such were employed in connection with the Project. d) On assumption of management of the Project by the Institution, the Client will, on the written demand of the Institution, deliver to it all Project Asset, all books, records, contracts and other documents relating to the Project. 14. CIVIL LAW STRUCTURE AND INTERPRETATION In all relations with third parties and this Agreement be construed under the laws of Islamic Republic of Pakistan. This Agreement shall not create a partnership or company and in no event has the Client any authority to bind the Institution. The Client shall contract the Project in the name of the Client and in no event shall the Institution be liable for the debts and obligations of the Client incurred for the Project or other purposes, except as stipulated in this Agreement and its Exhibits. 15. SET OFF The Institution may set-off against any obligation of the Client hereunder, or any other obligation of the Client, the balances of any account maintained by the Client with it. 16. GENERAL The parties agree that: a) Any notice or other communication required or permitted by this Agreement shall be deemed to have been given to the other party seven days after the day on which the same is posted by registered mail, addressed to the address mentioned in this Agreement or any other address given in writing to the other party, or one day after actual delivery at such address, whichever is earlier.
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