Guidelines for Islamic Modes of Finance, SBP

B whenever the circumstances so require consult with

Info icon This preview shows pages 110–112. Sign up to view the full content.

b) whenever the circumstances so require consult with the Client in any matter with a view to determining the policy to be followed in order to ensure the proper implementation of this Agreement, but without any obligation of the Institution to compromise its right, hereunder. c) perform its obligations under this Agreement without violation of the principles of Islamic Shariah. 8. PARTICIPATION IN PROFIT a) The participation in profit will be in accordance with the following ratio: (i) [ ]% of the profit will be for the Management Services and payable to the Client. (ii) [ ]% of the profit will be payable to the Institution. b) On Termination Date, the accounts of the Modaraba shall be drawn up in accordance with accepted accounting principles, and the profit if any due to the Client and the Institution shall be worked out and paid in the proportion specified above, subject to adjustment of any provisional payments made, (plus the amount paid by the Institution after deducting loss if any). c) At the sole discretion of the Institution, the Client may and Settings/Administrator/D...nes for Islamic Modes by SBP/mudaraba finance.htm (5 of 8) [2/24/2008 12:04:28 AM]
Image of page 110

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

State Bank of Pakistan - The Central Bank become entitled to receive a Good Performance Bonus at a rate to be determined by the Institution. 9. LOSSES a) (i) 100% of the loss in the Project will be borne by the Institution (ii) The client will receive no compensation for his Management Services, and will be liable for the loss if it is proven that he has breached his obligations or is proven to be failing in the discharge of his obligations under this Agreement. b) In the event of the Project showing losses during the currency of this Agreement the client shall forthwith give notice of such losses to the Institution together with all accounts and details pertaining thereto and such other information and records as may be required by the Institution. Notwithstanding the above, the Institution shall only be liable for the losses in the manner specified if the said losses have not been caused due to misconduct on the part of the Client in out the Project s business and operations or as a result of his negligence or inefficiency, including non-compliance with the terms and conditions of this Agreement 10. TAXATION On behalf of the Project, the Client shall be liable for and shall punctually and regularly pay all taxes, duties, cesses and other charges relating to the Project s business and operations. 11. TERMINATION a) Subject to other provisions of this Agreement, it is agreed that upon full payment on Termination Date or earlier, if proceeds have been received, the Modaraba shall stand redeemed. b) While the amount invested by the Institution must be repaid on the due date, mentioned above, the accounts of the Modaraba will be drawn up within 7 days thereof and the agreed share the Institution s profit will be promptly paid.
Image of page 111
Image of page 112
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '11
  • Finance, Institution, state bank, Islamic modes

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern