The Presidents/Chief Executives,
All Banks/DFIs,



Dear Sirs/ Madam,

 

ACCEPTANCE OF LEASED HOLD LAND AS COLLATERAL/SECURITIES

Please refer to BPRD Circular No 42 of 26th December 1997, on the above subject.

2. The position has been reviewed at SBP and it has been decided that henceforth, the banks/DFIs may themselves decide, in consultation with their lawyers, about i) accepting leased land as collaterals, and ii) determining the relationship between such collateral and the loan, on the basis of their own approved lending policies/requirements.

3. The instructions issued vide BPRD Circular No. 42 of 26th December 1997, therefore, stand withdrawn with immediate effect.

4. Please acknowledge receipt

Encl: