To: ________________
___________________
AGENCY AGREEMENT
With reference to the Murabaha Facility Agreement dated _______________ , we hereby confirm our agreement to appoint you as our Agent to acquire for our account and benefit goods of the description to be specified in the purchase requisition which shall be issued from time to time, under the following terms and conditions;
1. As an Agent of the Institution, you will be responsible to receive the Goods directly from the Supplier (s) from time to time in terms of Purchase Requisition(s) to be duly endorsed by the Institution and provide us a declaration confirming acquisition thereof, alongwith a statement containing relevant details including place of storage.
2. The bank shall prepare a Pay Order/Cross cheque, etc in the name of Supplier that will be handed over to the Agent. The supplier will issue an invoice in the name of Bank - Account Client (e.g. ‘1st Islamic Bank – ABC Company’).
3. In case of failure on your part to:-
a) Acquire goods in terms of this agreement and to refund, in consequence, the amount paid by us (the Institution) therefore, and/or
b) Repay the amount, if any, due from you upon a notice of revocation, if any, served by you in the manner provided hereunder; you shall become liable to pay a penalty to the institution by credit to a special Account, separately maintained by the institution, an amount which shall be 5% over the rate announced by SBP for providing short term accommodation to commercial banks, as on the date of such default by you. This amount will be calculated on the entire amount due from you, under this Agency Agreement and for the entire period for which the default subsists. The amount of such penalty shall be utilized by the institution only for the purposes of charity, in its absolute discretion.
4. The Institution shall have the authority, in its absolute discretion to refuse the disbursement of funds or to revoke this Agency Agreement at any time., subject to a notice in writing served given at least 07 days prior to revocation.
5. You may revoke this Agency Agreement by giving a notice in writing of at least 07 days prior to the date of intended revocation, provided that any amount due by you to the Institution shall become payable immediately and until such time that any such amount due from you has been discharged in full, this agreement shall not be deemed to have been revoked.
6. This Agency Agreement shall remain in force until revoked and shall be governed by the prevailing laws of Pakistan and the Murabaha Facility Agreement dated _______________. Any dispute between the parties shall be submitted to a Court/Tribunal of competent jurisdiction in __________.
Kindly signify your acceptance of the foregoing terms and conditions by signing the duplicate.
For and on behalf of (insert name of the Institution)
___________________________
AUTHORISED SIGNATORY OF THE INSTITUTION
AGREED AND ACCEPTED
For and on behalf of [insert name]
___________________________________
AUTHORISED SIGNATORY OF THE AGENT
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