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Guidelines for Islamic Modes of Finance, SBP

5 payment of contract price 5.01 all payments to be

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Unformatted text preview: 5. PAYMENT OF CONTRACT PRICE 5.01 All payments to be made by the Client under this Agreement shall be made in full, without any set-off, roll over or counterclaim whatsoever, on the due date and when the due date is not a Business Day, the following Business Day and save as provided in Clause 5.02, free and clear of any deductions or withholdings, to a current account of the Institution as may be notified from time to time, and the Client will only be released from its payment obligations hereunder by paying sums due into the aforementioned account. 5.02 If at any time the Client is required to make any non refundable and non-adjustable deduction or withholding in respect of Taxes from any payment due to the Institution under file:///C|/Documents and Settings/Administrator/...delines for Islamic Modes by SBP/musawamah/1.htm (4 of 11) [2/23/2008 11:51:13 PM] State Bank of Pakistan - The Central Bank this Agreement, the sum due from the Client in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Institution receives on the Payment Date, a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made and the Client shall indemnify the Institution against any losses or costs incurred by the Institution by reason of any failure of the Client to make any such deduction or withholding. The Client shall promptly deliver to the Institution 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 The Client warrants and represents to the Institution that: a. The execution, delivery and performance of the Principal Documents by the Client will not (i) contravene any existing law, regulations or authorization to which the Client is subject (ii) result in any breach of or default under any agreement or other instrument to which the Client is a party or is subject to, or (iii) contravene any provision of the constitutive documents of the Client or any resolutions adopted by the board of directors or members of the Client; b. The financial statements submitted 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 client, its directors and principal officers, there are no material omissions and/or mis-representations; c. All requisite corporate and regulatory approvals required to be obtained by the Client in order to enter into the Principal Documents are in full force and effect and such approvals permit the Client, inter alia, to obtain financial facilities under this Agreement and perform its obligations hereunder and that the execution of the Principal Documents by the Client and the exercise of its rights and performance of its obligations hereunder, constitute private and commercial acts done for...
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5 PAYMENT OF CONTRACT PRICE 5.01 All payments to be made by...

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