Guidelines for Islamic Modes of Finance, SBP

Under any of the principal documents 8 conditions

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Unformatted text preview: under any of the Principal Documents 8. CONDITIONS PRECEDENT 8.01 The obligation of the Institution to pay the Cost Price shall be subject to the receipt by the Institution (in form and substance acceptable to the Institution) at least ___ Business Days prior to the Value Date of: a) Documentary evidence that: i) This Agreement and the Agency Agreement (should the Institution appoint the Client as its Agent) have been executed and delivered by the Client; ii) The Client ’ s representatives are duly empowered to sign the Principal Documents for and on behalf of the Client and to enter into the covenants and undertakings set out herein or which arise as a consequence of the Client entering into the Principal Documents; iii) The Client has taken all necessary steps and executed all documents required under or pursuant to the Principal Documents or any documents creating or evidencing the Security in favour of the Institution and has perfected the Security as required by the Institution. b) Certified copy of the Memorandum and Articles of Association of the Client. c) Certified copies of the Client ’ s audited financial statements for the last ____ years d) The Purchase Requisition. 8.02 The obligation of the Institution to pay the Cost Price on the Value Date shall be further subject to the fulfillment of the file:///C|/Documents and Settings/Administrator/...delines for Islamic Modes by SBP/musawamah/1.htm (7 of 11) [2/23/2008 11:51:13 PM] State Bank of Pakistan - The Central Bank following conditions (as shall be determined by the Institution in its sole discretion): a) The payment of Cost Price by the Institution to the Supplier on the Value Date shall not result in any breach of any law or existing agreement; b) The Security has been validly created, perfected and is subsisting in terms of this Agreement; c) c) The Institution has received such other documents as it may reasonably require in respect of the payment of the Cost Price; d) No event or circumstance which constitutes or which with the giving of notice or lapse of time or both, would constitute an Event of Default shall have occurred and be continuing or is likely to occur and that the payment of the Cost Price shall not result in the occurrence of any Event of Default; e) Delivery by the Client to the Institution of a true and complete extract of all relevant parts of the minutes of a duly convened meeting of its Board of Directors approving the Principal Documents and granting the necessary authorizations for entering into, execution and delivery of the Principal Documents which shall be duly signed and certified by the person authorised by the Board for this purpose; f) All fees, commission, expenses required to be paid by the Client to the Institution have been received by the Institution....
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under any of the Principal Documents 8 CONDITIONS PRECEDENT...

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