Guidelines for Islamic Modes of Finance, SBP

Means the parties to this agreement"principal

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Unformatted text preview: means the parties to this Agreement, "Principal Documents" means this Agreement, and the Security Documents, "Prudential Regulations" means Prudential Regulations or other regulations as are notified from time to time by the concerned regulatory authorities for banks or NBFIs. "Security Documents" means such deeds and documents as the Institution may require the Client to furnish or execute under this Agreement. "Security" is defined in Clause 15. "Secured Assets" means all the Client's (insert description of the proposed securities) "Rupees" or "Rs." means the lawful currency of Pakistan "SBP" means the State Bank of Pakistan, “ SEC ” means the Securities and Exchange Commission of Pakistan established under the Securities & Exchange Commission of Pakistan Act, 1997 and includes any successors thereto; "Written Request" means request by the Client to the Institution. 2. The Institution hereby agrees at written request of the Client to provide financing up to a sum of Rs. ____________ (Rupees _________________________ only) on the terms and conditions hereinafter contained (which financing is hereinafter referred to as “ Institution ’ s Investment ” ). 3. This Agreement shall be valid for a period of ___________ years from the date of first disbursement of the Institution ’ s Investment. 4. The Client and the Institution hereby mutually agree and covenant as under: i) The Institution ’ s Investment shall be used only for [insert file:///C|/Documents and Settings/Administrator/D...idelines for Islamic Modes by SBP/musharaka/1.htm (2 of 7) [2/23/2008 11:57:15 PM] State Bank of Pakistan - The Central Bank description of purpose of the Musharaka Investment] and shall not be used and / or diverted for any other purpose. ii) The investment of the Client for the purpose of this Agreement aggregate to Rs.________________ (Rupees ____________________________________only) as on _________ as per details given in Annexure ‘ A ’ to this Agreement ( Client ’ s Investment ). iii) The Client has obtained following funds from various sources on Profit and Loss Sharing basis all of which are hereinafter referred to as “ other PLS Funds ” . ___________ ______________ ______________ _____________ ___________ ______________ ______________ _____________ iv) The Client shall not make any change in its paid up capital, accumulated reserves or un-appropriated profits, except on the basis of annual audited accounts, and shall also not, without prior written consent of the Institution (which consent shall not be unreasonably withheld) make any additional borrowing or accept any further funds on Profit and Loss Sharing basis either for short term or long term from any source. The Client shall also not, without the prior written consent of the Institution, repay, earlier than the repayment schedule already agreed to, any other PLS Funds v) The Client shall not declare any dividend without the prior consent in writing of the Institution vi) The Client hereby covenants with the Institution that on the...
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means the parties to this Agreement"Principal...

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