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Bank at any time may cancel the contract and ask the client for repayment of Bank's dues.
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The client shall exclusively Bank with the Bank.
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General Power of Attorney in favor of the Bank shall have to be obtained in addition to all other charge documents.
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Collaterals by way of Equitable Mortgage of property as cover for loss due to negligence of the client shall be obtained.
RISK FUND: A risk Fund be created @ 2% of Investment amount at the time of first disbursement which shall be non-refundable. The fund, if required, shall compensate actual loss of the Client as decided upon by Head Office. The risk fund shall be kept at the branch.
SALE PROCEEDS: All sale proceeds shall be deposited daily in the respective Investment Account. Sum of total deposit in the Investment. Account plus physical stock in the shop shall always be sufficiently (at least marginally) higher than the total Investment in stock (Bank + Client). Withdrawal from the Musharaka account shall be restricted up to the limit amount.
5.4.6 MUDARABA Mudaraba is a Mode of partnership financing base on Islamic Shariah Principle under which entire capital is provided by the Bank against a firm contract to the client on the stipulation that the client will manage the business with due diligence properly and effectively. Profit shall be shared by the partners as per agreed ratio and loss if any shall be borne by the Bank i.e. supplier of capital. Supplier of capital is known as "Sahibul Mal" and the user of capital is known as "Mudarib". TYPE OF MUDARABA: Though this Murabaha principle of Islamic Investment is not practiced in Exim Bank Ltd. There may be following types of Murabaha Investment. General Mudaraba – it is not limited by time, place, item or any other restriction. Specific purpose Mudaraba – it is limited by purpose and the Mudarib cannot go beyond the specified purpose. Features of Mudaraba: • •
Bank being the Sahebul Mal will provide the capital and the Mudarib will manage the business. The amount of investment shall be made known to both the parties. Normally Bank will not interfere in the affairs of business. But will have the right to supervise and oversee the operation.