Monday, 20 February 2017, 23 Jamadilawal 1438H Solat Time:
KL Imsak 6:00 | Subuh 6:10 | Syuruk 7:25 | Zohor 1:30 | Asar 4:47 | Maghrib 7:29 | Isyak 8:39

Terms & Conditions


Personal Financing-i Facility

1. Overview

The terms and conditions herein shall apply to the Customers who have been granted Personal Financing-i Facility (“Facility”) by Bank Islam Malaysia Berhad (“the Bank”).

2. Accepting the Agreement

By signing the Bank’s application form for the Facility, the Customer agrees to be bound by the following terms and conditions.

The Customer’s usage of the Facility upon its disbursement and the acceptance of statements of account sent to the Customer by the Bank shall be conclusive evidence of a binding contract between the Customer and the Bank, and the said evidence can be used in any Court of Law in the event of any dispute.

3. Mechanics of Financing

 3.1 Under the Shariah concept of Tawarruq and pursuant to the Bank’s financing procedure, the Customer will purchase a commodity (a subject matter of Tawarruq) from the Bank on deferred payment and sells the commodity to a third party at a lower amount in the following manner :-

      • Purchase of the Commodity by the Bank from the Broker
        Pursuant to an offer to purchase (Ijab) a commodity by the Customer from the Bank in the form as set out in Appendix C, the Bank will buy the Commodity from the Broker.
      • Purchase of the Commodity by the Customer from the Bank
        Upon confirmation that the sale from the Broker has gone through, the Bank shall perform an acceptance of offer to purchase (Qabul), concluding a Bai Murābahah transaction with the Customer on the terms and conditions as contained herein. The Customer shall pay the Sale Price on a deferred payment term (Appendix A) and the Bank shall immediately enable the Customer to take constructive possession of the Commodity.
      • Sale of the Commodity by the Customer and the Bank acts as agent (Wakalah transaction)
        Pursuant to the appointment of the Bank as sales agent as set out in Appendix B, the Customer shall appoint the Bank as his agent to sell the Commodity for the purpose of getting the Proceeds (Wariq). The Bank shall sell the Commodity on a spot payment basis with immediate delivery and the Proceeds will be credited into the Customer’s accounts.
      • Confirmation of Transaction
        Upon conclusion of the above, the Bank will issue to the Customer a Confirmation in the form as set out in Appendix D.

4. Definitions

In these Terms and Conditions, where the context so admits the following words shall have the meanings set out against them:-

Word Meaning
“Commodities” the Commodities acceptable by the Shariah; the commodities which to be purchased by the Customer from the Bank;
“Confirmation” a notice of confirmation issued by the Bank to the Customer confirming the sale of the Commodities from the Bank to the Customer and from the Customer to the third party, as the case may be;
“Event of Default” any of the events specified in Clause 11 hereof;
“Guarantee” the Guarantee executed by the Guarantor(s) in favour of the Bank guaranteeing the payment of the Indebtedness (if applicable);
“Guarantor(s)” the person(s) who executes the Guarantee guaranteeing the payment of the Indebtedness (if applicable) and include their respective assigns, personal representatives, executors, administrators and estates (if applicable);
“Indebtedness” the Sale Price or any part thereof outstanding and all other monies whatsoever including but not limited to fees, costs (including legal costs on a solicitors and client basis), charges and expenses due and payable to the Bank pursuant to the Facility;
“Month” a Gregorian calendar month;
“Profit” the difference between the Sale Price payable herein and the Facility and the method of recognition of the profit margin as the Bank’s income shall be in accordance with the Bank’s accounting policy prevailing at the material time;
“Proceeds/ Wariq” the amount payable to the Customer on the sale of the Commodities to any third party by the Bank as an agent to the Customer which the amount also constitutes the Facility;
“Ringgit Malaysia” the lawful currency of Malaysia and relate to all payments to be made under these Terms and Conditions;
“Security” the security provided by the Security Party in securing the payment of Indebtedness to the Bank and any other security for the time being or from time to time constituting security for the obligations and liabilities (including but not limited to the payment of the indebtedness) of the Customer under and in connection with the Facility;
“Security Documents” this terms and conditions, the letter of appointment of the Bank as sales agent, and any other security documents for the time being or from time to time constituting security for the obligations and liabilities (including but not limited to the payment of the Indebtedness) of the Customer under and in connection with the Facility;
“Security Party” the Customer and the party or parties for the time being providing security for the obligations and liabilities of the Customer (including but not limited to the payment of the Indebtedness) under and in connection with the Facility;
“Sale Price” the amount as stated in the Confirmation payable by the Customer to the Bank for the sale of the Commodities which includes the profit margin from the Bank to the Customer;

5. Definitions of Mualamat Terminologies

Word Meaning
Bai’ Sale and purchase
Murābahah A contract of sale based on cost plus where the acquisition cost and the seller’s profit margin are disclosed to the buyer at the time of the contract. The settlement of the price is normally made on deferred payment terms i.e. Bai’ Bithaman Ajil.
Musāwamah A general kind of sale in which price of the commodity to be traded is bargained between seller and the purchaser without any reference to the acquisition cost incurred by the seller.
Tawarruq It is the purchase of a commodity (i.e. the subject matter of Tawarruq) on deferred payment basis by way of either Bai’ Musawamah or Bai’ Murabahah. The commodity is then sold for cash to a party other than the original seller.
Wakalah A contract of appointment of an agent whereby a person appoints another to act on his behalf.
Wariq Proceeds from sale of commodity
Wadiah Safe custody

6. Interpretations

    1. Words and expressions denoting the singular number only shall include the plural and vice versa and words and expressions denoting the masculine gender only shall include the feminine and neuter gender.
    2. Reference to clauses and schedules shall unless otherwise expressly provided be references to Clauses of and the Schedules to these Terms and Conditions.
    3. The headings in these Terms and Conditions are inserted for convenience only and shall be ignored in construing the provisions of these Terms and Conditions.

7. Payment by the Customer

    1. The amount of the Sale Price as stated in the Confirmation shall be paid by the Customer on a deferred payment term in the amount at the times and/or in the manner as notified by the Bank to the Customer in writing. The amount as stated in any statement issued by the Bank to be due and payable by the Customer to the Bank shall in the absence or manifest error be conclusive evidence that such amount is due and payable by the Customer to the Bank. All payments made by the Customer pursuant to each statement shall be deemed to be payments made towards the satisfaction of the Sale Price or such part thereof remaining unpaid under these Terms and Conditions;
    2. The Bank shall have absolute discretion to impose the Customer to pay to the Bank a security deposit (“the Security Deposit”) in which shall be retained by the Bank for the due observance by the Customer of the stipulations terms and conditions of these Terms and Conditions and the Customer hereby authorises the Bank to set-off and utilise the Security Deposit for the purpose of payment of any instalments due and payable and other monies payable by the Customer under the Facility PROVIDED ALWAYS THAT any balance of the Security Deposit after deductions of any instalments due and payable or other monies payable by the Customer herein shall be refunded to the Customer on full settlement of the Sale Price and all monies due and/or payable herein.
    3. The Bank shall be entitled at any time and at its sole discretion to send to the Customer reminders in respect of any instalment due (“Reminder”), whether or not the Customer has requested for the same and the Customer may be notified of each Reminder via mobile phone (if supported by the Customer phone operator) subject to the relevant terms and charges of the phone operator.
    4. The Customer is fully aware that the Customer receipt of each Reminder may be delayed or prevented by factor(s) affecting the relevant service provider(s), phone operator(s) and any other relevant entities. The Customer accepts that the Bank neither guarantees the delivery nor accuracy of the contents of each Reminder and shall not be liable to the Customer or anyone else for losses or damages arising from:
      1. a non-delivery, delayed delivery or wrongful delivery of each Reminder;
      2. inaccurate content of each Reminder; or
      3. the Customer’s use or reliance on the contents of any Reminder for any purposes.
    5. The information in respect of any Reminder may be subject to certain time lags and/or delays. The features of any Reminder may at any time be varied or discontinued by the Bank, with or without notice, at its absolute discretion.
    6. that these Terms and Conditions constitute the legal valid and binding obligations of the Customer enforceable in accordance with its own terms and the obligations of the Customer thereunder do not contravene any legislation or regulation binding on the Customer;
    7. that the Customer is not now nor utilising the Facility as the case may be in default under any existing mortgage indenture contract or debenture binding on the Customer or to which it is subject;
    8. that there is no order of any court or any governmental agency or any provision of any existing agreement binding on the Customer or to which it is subject which would be contravened or breached by the execution delivery and performance of these Terms and Conditions;
    9. that no lawsuits or investigations by any governmental agency body or other regulatory authority or any other party are pending or are to be instituted against the Customer;
    10. that no violation of any provisions of legislation court orders judgment and others has been committed by the Customer;
    11. that there are no bankruptcy proceedings pending against the Customer;
    12. that every license approval or authorization of any governmental authority in Malaysia which is required in connection with the execution performance validity or enforceability of these Terms and Conditions have been obtained and is in full force and effect;
    13. that the rights and obligations of the parties under these Terms and Conditions are governed by and construed in accordance with the laws of Malaysia;

8. SMS Reminder

  1. The Bank shall be entitled at any time and at its sole discretion to send to the Customer reminders in respect of any instalment due (“Reminder”), whether or not the Customer has requested for the same and the Customer may be notified of each Reminder via mobile phone (if supported by the Customer phone operator) subject to the relevant terms and charges of the phone operator.
  2. The Customer is fully aware that the Customer receipt of each Reminder may be delayed or prevented by factor(s) affecting the relevant service provider(s), phone operator(s) and any other relevant entities. The Customer accepts that the Bank neither guarantees the delivery nor accuracy of the contents of each Reminder and shall not be liable to the Customer or anyone else for losses or damages arising from:
  • a non-delivery, delayed delivery or wrongful delivery of each Reminder;
  • inaccurate content of each Reminder; or
  • the Customer’s use or reliance on the contents of any Reminder for any purposes.
The information in respect of any Reminder may be subject to certain time lags and/or delays. The features of any Reminder may at any time be varied or discontinued by the Bank, with or without notice, at its absolute discretion.

9. Telephone Monitoring and Recording
The Customer authorises the Bank to contact the Customers by telephone about the Facility. The Customer agrees that the Bank may place such telephone calls using an automatic dialing ant that such calls will not be unsolicited calls. From time to time the Bank may monitor and/or record the telephone calls between the Customer and the Bank. The Customer further agrees the Bank that monitoring and/or recording may be done and that no additional notice to the Customer or additional approval from the Customer is needed.

10. Representations and Warranties by the Customer
The Customer represents and warrants to the Bank as follows:

    1. that these Terms and Conditions constitute the legal valid and binding obligations of the Customer enforceable in accordance with its own terms and the obligations of the Customer thereunder do not contravene any legislation or regulation binding on the Customer;
    2. that the Customer is not now nor utilising the Facility as the case may be in default under any existing mortgage indenture contract or debenture binding on the Customer or to which it is subject;
    3. that there is no order of any court or any governmental agency or any provision of any existing agreement binding on the Customer or to which it is subject which would be contravened or breached by the execution delivery and performance of these Terms and Conditions;
    4. that no lawsuits or investigations by any governmental agency body or other regulatory authority or any other party are pending or are to be instituted against the Customer;
    5. that no violation of any provisions of legislation court orders judgment and others has been committed by the Customer;
    6. that there are no bankruptcy proceedings pending against the Customer;
    7. that every license approval or authorization of any governmental authority in Malaysia which is required in connection with the execution performance validity or enforceability of these Terms and Conditions have been obtained and is in full force and effect;
    8. that the rights and obligations of the parties under these Terms and Conditions are governed by and construed in accordance with the laws of Malaysia;

The truth and correctness of all matters stated in the representations and warranties in the foregoing paragraphs of this section hereof form the basis of the Bank’s commitment to make available the Facility to the Customer. If any such representation and/or warranty made at any time hereafter be found to have been incorrect in any material respect then and in such event and notwithstanding anything to the contrary in this Terms and Conditions contained therein the Bank has the right at its absolute discretion to terminate the Facility or part or parts thereof.

11. Events of Default
Upon the occurrence of any of the following events at any time and regardless of whether the event is within or beyond the control of the Customer: ‑

    1. if the Customer shall default in the payment of the Indebtedness or any part thereof after the same shall have become due whether formally demanded or not;
    2. if either Customer fails or in breach of any provisions of these Terms and Conditons;
    3. if any representation or warranty made or deemed made the Customer under this Terms and Conditions or which is contained in any certificate, document or financial or other statement furnished at any time pursuant to the terms of the these Terms and Conditions proves to have been incorrect in any material respect on or as of the date made or deemed made;
    4. if any liability of any of the Customer becomes capable, in accordance with the relevant terms thereof, of being due prematurely by reason of a default by it in its obligations in respect of the same, or it fails to make any payment in respect thereof on the due date for such payment or if due on demand when demanded or the security for any such liability becomes enforceable;
    5. if the Customer becomes or is declared insolvent or consents to the appointment of a trustee, custodian, intervener or receiver for it or for what in the Bank’s opinion is a substantial part of its assets, or any such trustee, custodian, intervener or receiver is appointed, or dissolution, re‑organisation, intervention, arrangement or liquidation proceedings (or proceedings similar in purpose or effect) are instituted by or against any of the Customer;
    6. if the Customer dies or insane;
    7. if a distress or a warrant of attachment or execution or similar process against any substantial part of the assets of any of the Customer is issued;
    8. if one or more judgments or decrees shall be entered against the Customer and involving in the aggregate a liability (not paid or fully covered by Takaful/ insurance) of such quantum deemed significant by the Bank and any such judgment or decree shall not have been vacated discharged or stayed within sixty (60) days from the entry thereof;
    9. if any present or future security on or over the assets of the Customer becomes enforceable and in the opinion of the Bank such event has or could have a material adverse effect on its ability to fulfil its obligations under these Terms and Conditions;
    10. if any provision of these Terms and Conditions ceases to remain in full force and effect for any reason whatsoever;
    11. if the Customer enters into any arrangement or composition with its creditors;
    12. if any legal proceedings suit or action shall be instituted against the Customer and if after the Bank has reviewed the matter with the Customer the Bank is of the opinion that it will materially affect such person’s ability to fulfill its obligations under these Terms and Conditions;
    13. if the Customer becomes adjudged bankrupt;
    14. if false financial statements and/or other data required by the Bank shall have been furnished;
    15. if any of the assets of the Customer shall become the subject matter of any seizure, forfeiture, confiscation or expropriation by any authority, Government or otherwise;
    16. if the Customer default under any other agreement or arrangement whatsoever with the Bank; or
    17. if any other event or events occur or circumstances arise which in the opinion of the Bank will prevent the Customer from duly and punctually performing or complying with its obligations under these Terms and Conditions;

then, and in any such case, the Bank may declare that an Event of Default has occurred and simultaneously or at any time thereafter, irrespective of whether any event mentioned herein is continuing, the Bank shall at its discretion:‑

18. by written notice to the Customer declare the Indebtedness immediately due and payable; and
19. enforce any or all of the remedies available to it.
20. Any demand notice request or legal process required or permitted to be given or made under these Terms and Conditions to the Bank or to the Customer shall be in writing and in the case of the Bank shall be under the hand of any Manager or any authorised officer of the Bank or a solicitor or firm of solicitors purporting to act for the Bank.
21. Any such demand notice request or legal process shall be deemed to have been sufficiently given or made if sent by ordinary or registered post sent to the respective address of the parties hereto and shall be deemed to have been served on and duly received by the other party or parties after the expiration of five (5) days from the date it is posted or if delivered by hand or send by courier to the party to be served on his or its solicitors, on the day it was delivered.
21. No change in the address of the Customer howsoever brought about shall be effective or binding on the Bank unless the Customer has given to the Bank actual notice in writing of the change of address and nothing done in reliance on this provision shall be affected or prejudiced by any subsequent change in the address of the Customer over which the Bank has no actual knowledge of at the time the act or thing was done or carried out.

12. Concurrent Remedies
It is expressly agreed and declared that upon the occurrence of an Event of Default, the Bank shall thereafter have the right to exercise all or any of the remedies available whether under these Terms and Conditions or by statute or otherwise and shall be entitled to exercise such remedies concurrently including pursuing and completing all remedies of sale or possession and a civil action to recover all monies due and owing to the Bank.

13. Deficiency in Proceeds
If the amount realised by the Bank on the sale, assignment and/ or transfer of the asset of the Customer or any part thereof is less than the Indebtedness and whether at such sale, assignment and/ or transfer the Bank is the purchaser or otherwise, the Customer shall pay on demand to the Bank the difference between the amount due and the amount so realised.

14. Right of Consolidation and Set off (Muqassah)
Following an Event of Default, the Customer agrees that the Bank may in its absolute discretion at anytime and with reasonable notice combine or consolidate all or any account(s) of the Customer including accounts in the name of the Bank and / or of the Customer (whether current, deposit, investment, financing or of any other nature whatsoever) with the liabilities, wheresoever situated as set-off towards satisfaction of any sum due to the Bank under this Terms and Conditions. The Bank shall give the Customer seven (7) days’ advance notice in writing and / or via electronic means prior to the set-off, towards satisfaction of any sum due to the Bank under this Financing.

15. Statement of Account
A statement of account in writing stating the amount payable by the Customer in respect of the Facility issued by or on behalf of the Bank thereof shall in the absence of manifest error be conclusive evidence that such amount is in fact due and payable by the Customer.

16. Indemnity
The Customer shall fully indemnify the Bank from and against any expense including legal costs on a solicitors and client basis loss damage claim or liability (as to the amount of which the Bank’s certificate shall, in the absence of manifest error be conclusive) whatsoever in all respects which the Bank may incur sustain or suffer as the consequence of the occurrence of an Event of Default or any act deed or thing done by the Bank under the provisions of or otherwise in connection with the Facility. Without prejudice to its generality, the foregoing indemnity shall extend to any fees and other sums whatsoever paid or unpaid and to any loss (including loss or profit, premium, penalty or expenses which may be incurred in liquidating or employing deposits from third parties).

17. Waiver
No relaxation, forbearance, indulgence, failure or delay on the part of the Bank in exercising nor any omission to exercise any right, power, privilege or remedy accruing to the Bank under these Terms and Conditions, or any security in favour of the Bank upon any default on the part of the Customer shall impair any such right, power, privilege or remedy or be construed as a waiver thereof or an acquiescence in any default affect or impair any right, power, privilege or remedy of the Bank in respect of any other or subsequent default nor shall any single or partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy. The rights and remedies herein provided are cumulative and not exclusive of any other rights or remedies provided by law.

18. Time
Time wherever mentioned shall be of the essence of these Terms and Conditions.

19. Full PaymentNotwithstanding anything to the contrary contained herein, it is hereby agreed that on the satisfaction by payment or otherwise of the Indebtedness all the provisions herein contained shall cease to be of any effect but without prejudice to the Bank’s rights and remedies against the Customer in respect of any antecedent claim or breach.

20.Reconstruction of the Bank and the Customer
The securities, rights, liabilities, obligations created pursuant to these Terms and Conditions shall continue to be valid and binding for all purposes whatsoever notwithstanding any change by amalgamation, re‑construction or otherwise which may be made in the constitution of the Bank and similarly the liabilities and/or obligations created by these Terms and Conditions shall continue to be valid and binding for all purposes whatsoever notwithstanding any change by amalgamation, reconstruction or otherwise howsoever in the constitution of the Customer and it is expressly declared that no change of any sort whatsoever in relation to or affecting the Customer shall in any way affect the security liabilities and/or obligations created hereunder in relation to any transaction whatsoever whether past, present or future.

21. Indulgence
The liability and obligations of the Customer shall not be impaired or discharged by reason of any time forbearance or other indulgences being granted by or with the consent of the Bank to the Customer or to any person who or which may be in any way liable to pay any of the monies secured hereby or by any other security in favour of the Bank or by reason of any arrangement being entered into or composition accepted by the Bank modifying the operation of law or otherwise the rights and remedies of the Bank under these Terms and Conditions.

22. Variation of Terms
It is hereby expressly agreed and declared by the parties hereto that if the parties do mutually agree to vary or amend the terms and/or conditions of these Terms and Conditions, the terms and/or conditions of these Terms and Conditions may at any time and from time to time be varied or amended by mutual consent of the parties hereto by means of a mutual exchange of letters and thereupon such amendments and variations shall be deemed to become effective and the relevant provisions of these Terms and Conditions shall be deemed to have been amended or varied accordingly and shall be read and construed as if such amendments and variations had been incorporated in and had formed part of these Terms and Conditions at the time of execution hereof provide always that notwithstanding anything to the contrary hereinbefore contained in this Clause, the Bank shall nevertheless, to the extent permitted by law, be entitled at its absolute discretion to vary or amend the terms and/or conditions of these Terms and Conditions by notice in writing to the Customer and such amendments and variations shall have similar effect as those hereinbefore referred to in this Clause and nothing herein shall be construed so as to restrict or curtail or prejudice any of the rights of the Bank herein to vary or amend the terms and/or conditions without the necessity to obtain the Customer’s consent or confirmation.

23. Benefit to Assign, Successors, etc.
These Terms and Conditions shall be binding upon and enure to the benefit of the Bank and the Customer and their respective successors in title and assigns except that the Customer may not assign its rights or obligations thereunder or any interest therein without the prior written consent of the Bank but the Customer shall nevertheless remain liable for all its obligations hereunder in the event of any non‑disclosure of any material fact pertaining to the Customer’s assignment which if disclosed would affect the Bank’s decision to agree to such assignment. All undertakings, agreements, representations and warranties given, made or entered into by the Customer under these Terms and Conditions shall survive the making of any assignments thereunder.

24. Costs and Expenses
The Customer shall bear all stamp duties, fees, costs and expenses incurred in connection with or incidental to the Facility and/or the Bank’s solicitors’ fees (on a solicitors and client basis). In the event of any action of law whatsoever in relation to the Facility or any other instrument or document related thereto, the Customer in addition to all sums which the Customer may be called upon to pay to the Bank will pay the Bank’s solicitors’ fees (on a solicitors and client basis) and all other costs and expenses of such demand action or suit.

25. Law
These Terms and Conditions shall be governed by and construed in all respects in accordance with the laws of Malaysia and the parties hereto hereby submit to the jurisdiction of the Courts of Malaysia.

26. Expenditure Incurred by the Bank for and on Behalf of the Customer
All monies expended by the Bank in relation to the Facility from time to time for and on behalf of the Customer and for its account shall be recoverable from the Customer and shall be repaid on demand. In default of payment, such monies shall be deemed to form part of the Indebtedness.

27. Suspense and New or Separate Account
Any money received in relation to the Facility may be placed or kept to the credit of a suspense account for so long as the Bank thinks fit without any obligation in the meantime to apply the same or any part thereof in or towards the discharge of any money or liabilities due or incurred by the Customer to the Bank. Notwithstanding any such payment in the event of any proceedings in or analogous to bankruptcy liquidation or arrangement the Bank may prove for and agree to accept any profit or composition in respect of the whole or any part of such money and liabilities in the same manner as if these Terms and Conditions.

28. Disclosure to Central Credit Unit
The Bank, and its servants or nominees may, at any time and the Customer hereby consents to the same irrevocably, release information relating to the Customer in respect of the Facility and/or the Indebtedness to Bank Negara Malaysia’s Central Credit Unit or to any other approved agencies or in compliance with the laws of Malaysia and the Customer shall be deemed to have agreed to such disclosure.

29. Disclosure to related companies etc
The Customer hereby agrees that as long as the Indebtedness continues and/or as long as any monies are due from the Customer to the Bank, the Bank shall be entitled to disclose information on the Facility and/or the Indebtedness and/or the business of the Customer with the Bank to companies which are or which in the future may be related to the Bank.

30. Changes in Circumstances
If any change in applicable law, regulation or regulatory requirement or in the interpretation or application thereof or if compliance by the Bank with any applicable direction, request or requirement (whether or not having the force of law) or any governmental or other authority shall result in imposing on the Bank any condition burden or obligation which renders it undesirable, in the absolute opinion of the Bank, to make available or maintain the Facility, then upon notice from the Bank, the Facility shall be deemed to be cancelled in which event the Customer shall pay to the Bank the Indebtedness within seven (7) days from the receipt by the Customer of such notice.

31. Invalidity of any Provision
Any provision of these Terms and Conditions which is invalid, unenforceable or prohibited shall not affect the validity or enforceability of the other provisions of these Terms and Conditions.

32. Force Majeure
Notwithstanding any provision of these Terms and Conditions, the Bank shall not be liable for any failure on the part of the Bank to perform any obligation under these Terms and Conditions resulting directly or indirectly from the action or inaction of any governmental or local authority or any strike, boycott, blockade, act of God, civil disturbance or cause beyond the control of the Bank.

33. Ta’widh (Compensation)
It is hereby agreed that the Customer shall pay the Bank, by way of Ta’widh (compensation), a sum equivalent to one per centum (1%) per annum of the overdue instalment(s) until date of full payment and/or settlement thereof or a sum equivalent to the prevailing Islamic Interbank Money Market Rate of the Bank’s ‘r’ rate (i.e. the gross dividend rate for the 12-months investment account) on the balance principal amount outstanding upon maturity date or the expiry of the Facility(ies) PROVIDED ALWAYS that the abovesaid Ta’widh rates may be varied by the Shariah Advisory Council of Bank Negara Malaysia or the Shariah Supervisory Council of the Bank from time to time and upon receipt of notice on the variation thereof, the Ta’widh shall be applied in such manner as approved by the Shariah.

34. Service for Notices Legal Process Etc
a. Any demand notice request or legal process required or permitted to be given or made under these Terms and Conditions to the Bank or to the Customer shall be in writing and in the case of the Bank shall be under the hand of any Manager or any authorised officer of the Bank or a solicitor or firm of solicitors purporting to act for the Bank.

b. Any such demand notice request or legal process shall be deemed to have been sufficiently given or made if sent by ordinary or registered post sent to the respective address of the parties hereto and shall be deemed to have been served on and duly received by the other party or parties after the expiration of five (5) days from the date it is posted or if delivered by hand or send by courier to the party to be served on his or its solicitors, on the day it was delivered.

c. No change in the address of the Customer howsoever brought about shall be effective or binding on the Bank unless the Customer has given to the Bank actual notice in writing of the change of address and nothing done in reliance on this provision shall be affected or prejudiced by any subsequent change in the address of the Customer over which the Bank has no actual knowledge of at the time the act or thing was done or carried out.

35. Security (if applicable)

35.1 The Security  For better securing the payment of the Indebtedness or any part thereof as shall be outstanding and all other moneys whatsoever now or hereafter owing to the Bank by the Customer, the Customer and/or the Security Party shall provide the Security and execute or procure the execution of the Security Documents by the Security Party.

35.2 Continuing Security

 35.2.1 The security herein provided is expressly intended to be and shall be a continuing security for all moneys whatsoever now or hereafter and from time to time owing to the Bank by the Customer whether alone or jointly and severally with another or others and whether as principal or surety notwithstanding that the Customer may at any time cease to be indebted to the Bank for any period or periods.

35.2.2This Terms and Conditions shall be without prejudice to any security already given by the Customer to the Bank or any security which may hereafter be given to the Bank whether the same be for securing, the payment of the Facility together with Profit thereof and all other costs and charges thereon or any other moneys covenanted to be paid herein or whether it is taken as additional or collateral security otherwise howsoever.

35.3 Covenant to Provide Further Security
The Customer shall at any time if and when required by the Bank so to do, execute in favour of the Bank or as the Bank shall direct such legal or other mortgages, charges, assignments, transfers or agreements as the Bank shall require of and on all the Customer’s estate, right, title and interest in any property or assets or business belonging to the Customer or which may hereafter be acquired by the Customer and the benefits of all licences held in connection therewith to secure all moneys and liabilities hereby agreed to be paid or intended to be hereby secured and such mortgages, charges, assignments, transfers or agreements to be prepared by or on the Bank’s behalf at the Customer’s cost and to contain all such terms and conditions for the Bank’s benefit as the Bank may require.

Print Friendly
Al Awfar Countdown February-01