Guidelines for Islamic Modes of Finance, SBP

Hereinafter referred to as the institution(which

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Unformatted text preview: hereinafter referred to as the Institution, (which expression shall, where the context admits, mean and include its successors in interest and assigns) acting as Rab Al-Maal of the OTHER PART. PREAMBLE WHEREAS the Client and the Institution wish to enter into a Modaraba in conformity with the Islamic Shariah for the purpose of carrying out the Project described in Exhibit A. AND WHEREAS the Client has presented to the Institution an application to finance the Project described in Exhibit A and has satisfied conditions precedent and other formalities to avail of such financing; NOW THEREFORE THIS AGREEMENT WITNESSES AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS UNDER: 1. DEFINITIONS The parties agree that the following terms used in this agreement shall have the following meanings: Account means an account opened with the Institution in the name of the Client Client Asset Finance means the sum estimated by the Client as necessary to acquire the assets required for the Project as disclosed on the Project file:///C|/Documents and Settings/Administrator/D...nes for Islamic Modes by SBP/mudaraba finance.htm (1 of 8) [2/24/2008 12:04:28 AM] State Bank of Pakistan - The Central Bank Information Form Exhibit A and as reflected in the Cash Flow and Revenue Projection. Cash Flow and Revenue Projection means the financial projections for the project prepared by the client and annexed as Exhibit B . Management Services means the technical management and supervision services, required to ensure the success of the Project described in Exhibit B hereto. Profit means the amount of gross profit available for distribution after deduction of permissible expenses as may be agreed between the client and the Institution in terms of Schedule of Expenses hereto attached ( Exhibit C ). Client Information Form means Exhibit D prepared by the Client, disclosing certain information regarding the Client. Client Financials means the Balance Sheet and Profit and Loss Statement of the Client for the last three years, prepared by the Client and audited by an independent accountant. Draw Down Dates means the dates specified in Exhibit E at which the Institution is obliged to provide funds by credit to the Account Project Assets means all Asset Finance and all things acquired with such finance and the proceeds and profits thereof until distributed to the client and the Institution in accordance with the terms and conditions of this Agreement Termination Date is the date on which this Agreement shall terminate as herein provided. The following exhibits shall form part of this Agreement: 1. Exhibit A: Project Information Form being a narrative description of the Project 2. Exhibit B: Cash Flow and Revenue Projection for Project, and Management Services 3. Exhibit C: Schedule of Expenses 4. Exhibit D: Client Information Form 5. Exhibit E: Draw Down Dates 6. Exhibit F: Authorized Signatories....
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hereinafter referred to as the Institution(which expression...

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