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Guidelines for Islamic Modes of Finance, SBP

The supplier on the value date shall not result in

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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. 8.03 Any condition precedent set forth in this Clause 8 may be waived and or modified by the mutual written consent of the parties hereto. 9. EVENTS OF DEFAULT 9.01 There shall be an Event of Default if in the opinion of the Institution (a) Any representation or warranty made or deemed to be made or repeated by the Client in or pursuant to the Principal Documents or in any document delivered under this Agreement is found to be incorrect; (b) Any Indebtedness of the Client to the Institution in excess of Rs. __________________________ (Rupees __________________________________only) is not paid when due or becomes due or capable of being declared due prior to its stated maturity; 9.02 Notwithstanding anything contained herein, the Institution may without prejudice to any of its other rights, at any time after the happening of an Event of Default by notice to the Client declare that entire amount by which the Client is indebted to the Institution shall forthwith become due and payable. 10. PENALTY 10.1 Where any amount is required to be paid by the Client under the Principal Documents on a specified date and is not paid by that date, or an extension thereof, permitted by the Institution without any increase in the Contract Price, the Client file:///C|/Documents and Settings/Administrator/...delines for Islamic Modes by SBP/musawamah/1.htm (8 of 11) [2/23/2008 11:51:13 PM]
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State Bank of Pakistan - The Central Bank hereby undertakes to pay directly to the Charity Fund, constituted by the Institution, a sum calculated @ ------% per annum for the entire period of default, calculated on the total amount of the obligations remaining un-discharged. The Charity Fund shall be used at the absolute discretion of the Institution, exclusively for the purposes of approved charity.
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