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Approved

by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 23, 2013 N 39/9

REGULATIONS  

on the minimum requirements for standard contracts of microfinance organizations and credit unions, concluded in accordance with Islamic principles of banking and financing 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2, December 21, 2016 No. 49/8, May 31, 2017 No. 21/10) 

This Regulation applies to microfinance organizations, including microfinance organizations that have an "Islamic window" and credit unions that have a license (certificates) of the National Bank of the Kyrgyz Republic to conduct operations in accordance with the Islamic principles of banking and financing (hereinafter - FCO).

(Preamble as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 31, 2017 No. 21/10) 

Chapter 1. General Provisions 

1. The purpose of this Regulation is to standardize standard agreements concluded between the FCO and the client on transactions, in accordance with the Islamic principles of banking and financing.

2. This Regulation uses the definitions set forth in the Laws of the Kyrgyz Republic "On Credit Unions", "On Microfinance Organizations in the Kyrgyz Republic" and in the regulatory legal acts of the National Bank of the Kyrgyz Republic.

3. Standard contracts concluded in accordance with the Islamic principles of banking and financing must meet the following requirements:

a) compliance with Shariah standards;

b) freedom to conclude contracts;

d) legitimacy of contracts;

e) the contract shall, at a minimum, specify:

- names of the parties;

- the subject of the contract;

- contract time;

- the main conditions for the provision of financing, including an indication of the purpose, amount, remuneration, procedure and maturity, type of security;

- the rights and obligations of the borrower, including in case of non-fulfillment or improper fulfillment of the obligations assumed by him under the contract;

- rights and obligations of FCO;

- the client's right to early repayment of the debt at any time, without any penalties, subject to notification of this FCO at least thirty days before the day of such repayment;

- if the subject of the contract is the production of goods in the future, then the contract must provide for an accurate description of the properties of the goods and the period of its manufacture;

f) the terms of the contract must not violate the right of ownership of a third person( s);

g) actions arising from the terms of the contract must not contradict the legislation of the Kyrgyz Republic and Shariah standards;

h) contracts should not provide for the receipt of interest income by the parties;

i) the contract cannot be concluded if it contains uncertainty (ambiguity) in relation to the type, quantity of the subject of the contract, as well as uncertainty (ambiguity) in relation to the term of the contract;

j) it is not allowed to conclude agreements related to gambling, production and sale of meat products containing pork, weapons and ammunition, as well as other types of business activities prohibited by the Sharia Council of the FCO, as well as the legislation of the Kyrgyz Republic;

k) contracts must provide for the exclusion of the speculative nature of the transaction, which is prohibited by Shariah standards;

l) if the terms of the agreement provide for the receipt of profit, then the agreement must provide for the procedure for distributing profits between the parties.

4. The FCO, at its discretion, may introduce additional conditions that do not contradict this Regulation and Shariah standards into a standard contract concluded in accordance with the Islamic principles of banking and financing.

5. FCO has the right to approve in accordance with the established procedure the types of standard contracts concluded for individual transactions that comply with the Islamic principles of banking and financing.

6. All types of standard contracts concluded by the FCO in accordance with the Islamic principles of banking and financing must be agreed in the prescribed manner with the Shariah Council of the FCO.

7. In case of early repayment of financing by the client and subject to notification of this to the FCO at least thirty days before the date of such repayment, the FCO is not entitled to collect penalties from the client.

8. The font used in the contract with all Appendixes must be the same throughout the text of the contract. The font size must be at least 12.

9. For violation of this provision, the FCO will be liable in accordance with the legislation of the Kyrgyz Republic.

Chapter 2. Types of standard contracts concluded in accordance with Islamic principles of banking and financing 

§ 1. Mudaraba agreement 

10. The Mudaraba agreement can be concluded in the form of:

a) an agreement on a limited /special mudaraba, if the investor has the right to establish a list of assets or objects for investment by the mudarib. At the same time, a separate agreement is concluded between the Mudarib and the investor for each investment object;

b) an agreement on an unlimited / general mudaraba, if the mudarib has the right to use the funds provided at his own discretion.

11. The parties to the Mudaraba agreement are the Mudarib and the investor. FCO can act both as an investor and as a mudarib. MFIs that do not attract deposits form sources of financing (raised funds) in accordance with the legislation of the Kyrgyz Republic.

12. The Mudaraba agreement should provide for a ban on the misuse of funds, including the issuance of loans to third parties.

13. The Mudaraba agreement must contain a list of documents on the basis of which the parties have the right to sign the agreement.

14. The Mudaraba agreement must provide for the rights and obligations of the parties.

14.1. The rights and obligations of the investor include:

- the obligation of the investor to act in accordance with the terms of the contract;

- the obligation of the investor to provide the Mudarib with funds within the time limits established in the contract;

- the right of the investor to exercise control over the spending of funds provided by him;

- the obligation of the investor not to interfere in the current activities of the Mudarib on the execution of the contract, limited to monitoring and consultations;

- the right of the investor to advise the Mudarib during the execution of the contract, including legal issues;

- the right of the investor to check the progress of the implementation of the agreement by the Mudarib, in connection with which the Mudarib provides the investor with any reports that the latter may request;

- the right of the investor to receive profit within the terms established in the contract;

- the right of the investor to demand from the Mudarib ahead of time the return of the amount provided under the agreement, including at the expense of the security provided by the Mudarib, in case of non-fulfillment or improper fulfillment of the terms of the Mudaraba agreement.

14.2. The rights and obligations of the Mudarib include:

- the obligation of the Mudarib to act in accordance with the terms of the contract;

- the obligation of the Mudarib to make all necessary efforts to achieve the goal of the agreement - to obtain maximum profit;

- the duty of the Mudarib to exercise full control over the quality of the business project being implemented in order to comply with the necessary requirements of Shariah standards and the terms of the contract, as well as the financial discipline of spending money;

- the obligation of the Mudarib to act personally (with the participation of his available labor resources) in the course of the implementation of the contract. If the fulfillment of the contract requires the performance of works that go beyond the activities/competence of the Mudarib, the latter has the right to involve third parties who have the necessary knowledge or licenses and permits to perform work under this contract;

- the obligation of the Mudarib to act in good faith and in the manner that is best for fulfilling the contract and achieving the goal, in accordance with the terms of the contract and the requirements of the law, and in the absence of such conditions and requirements, in accordance with the customs of business transactions or other usually imposed requirements;

- the right of the Mudarib to use the funds received from the investor only for the purposes stipulated by the Mudaraba agreement;

- the obligation of the Mudarib to keep records of the use of funds (income) received from the investor and received in the process of fulfilling the contract, which allows, during the validity of the Mudaraba contract, to determine the profit received to be distributed between the parties to the contract. The Mudarib must keep a documentary record of all costs related to the execution of the Mudaraba agreement;

- the right of the Mudarib to independently, without the participation of the investor, conduct business activities in the course of the implementation of the agreement, while the Mudarib can consult with the investor in order to effectively fulfill the Mudaraba agreement;

- the right of the Mudarib to receive remuneration in accordance with the Mudaraba agreement.

15. The term of validity and execution of the contract are determined by the parties.

16. The agreement must provide for the investors ability to receive (pledge) from the Mudarib as security for the funds provided, as well as the investors right to recover the subject of security to cover losses in case of illegal actions, negligence or violation of the agreement by the Mudarib, as a result of which losses occurred.

17. The Mudaraba agreement must provide for the conditions that the profit of each of the parties to the agreement is determined as a share (percentage) of the profit received by the Mudarib in the course of using the funds provided by the investor.

18. The following conditions must be included in the Mudaraba agreement:

a) if, as a result of the implementation of the agreement, the mudarib not only did not receive a profit, but also received losses, the investor bears losses in the amount of the provided amount of money, and the mudarib in this case does not receive remuneration for his work. This rule for the distribution of losses is valid if the losses arose through no fault of the Mudarib;

b) in case of losses as a result of guilty or illegal actions of the Mudarib, the losses must be compensated at the expense of the Mudarib. At the same time, the investor has the right to receive from the Mudarib the funds transferred under the agreement on account of collateral, and in case of insufficient collateral - at the expense of other property of the Mudarib;

c) the agreement should specify the priority procedure for repayment of an asset that carries a credit risk, according to which the terms of the agreement are not met.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 21, 2016 No. 49/8) 

19. The Mudaraba agreement must provide for the possibility of its termination in the following cases:

a) at the end of the term of the contract;

b) by agreement of the parties to the contract;

c) or in other cases stipulated by the legislation of the Kyrgyz Republic and the contract.

A model Mudaraba agreement is given in Appendix 1 to this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2) 

§ 2. Murabaha agreement 

20. The parties to the Murabaha agreement may be the FCO and the client who has submitted an application for the FCO to purchase a certain product for him, or a product owned by the FCO at the time of the client's request.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 31, 2017 No. 21/10) 

21. Under the Murabaha agreement, the FCO undertakes, on its own behalf, to purchase the subject of the contract at the request of the client, or owned by the FCO by the time the client applies, and sell it to the latter by installments.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 31, 2017 No. 21/10) 

22. When selling the subject of the contract to the client under the Murabaha agreement, the FCO must have the right of ownership to the subject of the contract.

23. The right of ownership to the subject of the contract passes to the client after full payment of the price of the subject of the contract, unless otherwise provided by the terms of the contract.

24. The FCO may conclude a sale and purchase agreement both independently and through an agent. As an agent, the FCO may appoint a client who acts on behalf of and at the expense of the FCO.

25. In the case where the client acts on behalf of the FCO as an agent, the following conditions must be observed:

a) FCO must pay the seller and not deposit the price of the goods on the account of the client as an agent;

b) FCO must take the seller's documentary evidence of the sale.

FCO must receive the goods from the supplier's premises or any other place that was specified in the terms of delivery.

All costs associated with the delivery and purchase of goods are borne by FCO. These costs are subsequently included in the cost of the goods.

FCO assumes responsibility as the owner of the goods and bears the subsequent risks, which can be insured. The insurance premium that arises before the sale of the goods to the client belongs entirely to the FCO.

Insurance costs are included in the price of goods purchased under the Murabaha contract.

26. All documents and contracts related to the purchase and sale of the subject matter of the contract must be on behalf of the FCO, even if the client acts as an agent of the FCO.

27. FCO must receive the subject of the contract from the territory of the supplier or any other place that was indicated in the terms of delivery.

28. The FCO may include the following conditions in the Murabaha agreement:

a) FCO shall not be liable for any defects in the subject matter of the contract after the goods have become the property of the customer;

b) if the client refuses to purchase the subject of the contract after the entry into force of the murabaha agreement, the FCO has the right to sell the subject of the murabaha agreement to a third party, imposing on the client the obligation to reimburse the expenses of the FCO not covered by the cost of the sold goods related to the acquisition of the subject of the contract.

29. FCO is not entitled to make murabaha transactions:

a) in relation to precious metals (gold, silver, etc.) and foreign currency;

b) with working capital, where assets are secured by receivables;

c) when refinancing a transaction.

30. FCO may sell the object of the contract if the client delays payments for more than the period specified in the contract. If the FCO sells the subject of the contract, then those payments that have already been received from the client are reimbursed.

31. If the FCO has received collateral from the client, the client shall order the FCO to sell the collateral to cover the debt without going to court.

32. The Murabaha agreement must provide for the price and payment procedure. The Murabaha agreement must provide for the condition that the sale price of the subject of the FCF agreement is determined by the parties as the sum of the purchase price and the margin agreed by the parties to the agreement. The markup can be set as:

- a fixed lump sum;

- share of the cost of the subject of the contract.

An essential condition of the Murabaha agreement is the mandatory indication and allocation of the markup in the sale price.

33. The Murabaha agreement may provide that payment of the price for the subject matter of the agreement will be made by regular installments on a short or long term basis. In the event that the client does not make the next payment for the subject of the contract sold by installments within the established period, the client shall pay a penalty in the amount determined by the parties. At the same time, the amount of the penalty accrued for the entire period of the agreement should not exceed 20 percent of the amount of financing. Funds received in the form of a penalty are directed to charitable purposes. The Sharia Council of the FCO should ensure control over the intended use of funds received in the form of a penalty.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 21, 2016 No. 49/8) 

34. The murabaha agreement must provide that the costs included in the price of the subject of the contract purchased under the murabaha agreement include :

- insurance costs;

- the subsequent costs of the FCO associated with the acquisition of the goods, as well as the costs of transportation, import duties and other costs associated with the execution of the contract.

35. The murabaha agreement should provide that the FCO, as evidence of the conclusion of the negotiated agreement and as security for its execution, may receive an advance from the client on account of the payments due under the murabaha agreement.

36. When concluding a murabaha agreement, all the conditions on the basis of which the transaction will be carried out should be specified, including:

a) the condition that all expenses of the FCO, including payments to a third party, are included by the FCO in the sale price. At the same time, expenses for the payment of wages to FCO employees cannot be attributed to expenses;

b) selling price;

c) the size of the markup - the remuneration that the FCO will receive from this transaction.

At the same time, the selling price or markup cannot be set in an indefinite manner, for example, depending on any indicators that will be known in the future. It is allowed at the stage of conclusion of the contract to establish the selling price and margin, depending on indicators known in advance to the client. The size of the markup cannot depend on the time factor.

37. The murabaha agreement may provide for the right of the FCO to demand early repayment from the client in the event of an unreasonable delay in the next installment, subject to prior notification to the client of the terms of payment.

38. The Murabaha agreement should provide for the right of the FCO in the event of a delay by the client in payment for the subject of the agreement for a longer period than provided for in the agreement, at its discretion:

a) sell the goods to third parties with reimbursement to the client of the funds received from the latter as part of the payment for the subject of the contract, if any;

b) not to formalize the client's ownership of the goods until the subject of the contract is paid in full.

39. Commission and payment for the provision of financing under the Murabaha agreement are not charged from the client.

40. The costs for preparing documents under the Murabaha agreement are shared between the FCO and the client, unless otherwise provided by the agreement. At the same time, all expenses of the parties must be distributed between them fairly and taking into account the actual amount of work performed by each of the parties.

41. The FCO may charge a fee for the preparation of a feasibility study if it is prepared at the request of the client and for his benefit and the client has agreed to pay for it.

42. FCO, in order to ensure the proper fulfillment by the client of the obligation under the Murabaha agreement, must conclude an agreement with the client on the pledge of funds or other type of security. The amount of money transferred as collateral cannot be invested by the FCO, unless otherwise provided by the agreement.

43. At the request of the client, the amount of money transferred as a pledge may be credited as payment for the goods in accordance with the Murabaha agreement.

44. FCO is obliged to return the pledge after the client fulfills his obligations under the Murabaha agreement.

45. FCO bears all risks associated with damage, destruction or loss of goods during transportation or storage, and they cannot be covered by a deposit.

A model murabaha agreement is given in Appendix 2 to this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2) 

§ 3. Treaty of Salam 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2) 

46. The Salam Agreement is concluded between the FCO and the client. Under the Salam Agreement, the FCO acts as the Buyer, and under the Parallel Salam, the FCO acts as the Seller.

47. The subject of the contract cannot be foreign currency, precious metals.

48. The Salam Agreement is concluded for goods that can be weighed, measured or counted.

49. FCO purchases goods under the Salam agreement and sells them at the request of a solvent client.

50. The essential terms of the contract are:

1) sale of a certain product with deferred delivery;

2) payment of the cost of goods at the time of conclusion of the contract. With the consent of the Seller, the Buyer can make payment within three working days after the conclusion of the contract.

51. FCO, in order to ensure the proper fulfillment by the client of obligations under the Salam agreement, may receive security from the client in the form of a pledge, surety and other types of security provided for by the legislation of the Kyrgyz Republic.

52. Rights and obligations of the Parties:

1) The parties set a specific date for the delivery or delivery of goods in batches within the established time limits, provided that their cost was paid at the time of the initial conclusion of the contract;

2) The buyer is not allowed to sell the goods until he has obtained ownership of them;

3) the ownership of the goods passes to the Buyer from the moment the contract is concluded and its cost is paid in accordance with the terms of the contract;

4) if both Parties agree, it is allowed to completely cancel the Salam contract in exchange for a full refund of its value. Partial cancellation is also permitted, i.e. cancellation of the delivery of a part of the goods in exchange for a corresponding reimbursement of a part of the cost of the contract;

5) The Seller is obliged to deliver the goods to the Buyer on time in accordance with the terms of the contract, in accordance with the agreed specifications (type, grade of goods, quantity, quality of the goods). The buyer, on the other hand, must accept the goods if they meet the specifications stipulated in the contract;

6) if the Seller is unable to fulfill his obligation or the Seller does not have all or part of the goods in stock on the due date, the Buyer may:

a) wait until the goods are available or allow a longer period of time for the delivery of the goods;

b) terminate the contract and recover the paid funds;

7) the contract should provide for the responsibility of the Parties for improper/untimely fulfillment of obligations under the contract. If the Buyer/FCO fails to fulfill its obligations to pay the Seller in the amount and within the time limits stipulated by the agreement, the Seller may terminate the agreement unilaterally, refusing to fulfill its obligations with the obligatory notification of the Buyer/FCO in writing.

53. The contract must provide for conditions in the event of force majeure.

54. All rules established for the Salam contract also apply to the Parallel Salam contract.

55. Under the agreement, Parallel Salam FCO acts as the Seller.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 21, 2016 No. 49/8) 

56. The term of the Salam/Parallel Salam agreement begins from the moment the agreement is concluded.

Standard Salam and Parallel Salam agreements are given in Appendix 3 and Appendix 4 to these Regulations.

 

 

 

Appendix 1

to the Regulation "On the minimum requirements for standard agreements of microfinance organizations and credit unions, concluded in accordance with the Islamic principles of banking and financing"

Mudaraba agreement (limited/special)  

N _______ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2, December 21, 2016 No. 49/8) 

Bishkek

 

"___" ________ 20__

 

________________________________ represented by _________________________, acting in accordance with ______________________________, hereinafter referred to as FCO on the one hand, and ________________________________, represented by ______________________________________ acting in accordance with _________________________________, hereinafter referred to as "Mudarib" on the other hand, collectively referred to as the "Parties", have concluded this agreement about the following.

1. The Subject of the Agreement 

1.1. In accordance with this agreement, the FCO provides the Mudarib with funds, and the Mudarib uses these funds using its own labor resources, and, if necessary, hiring other organizations with the necessary permits, to implement a business project on ____________________________________________ in order to generate profit and distribute it between the Parties in accordance with this agreement.

The Mudarib undertakes to _______________________________________, as well as to perform all legal and actual actions related to the fulfillment of this obligation and within its competence, and to ensure _______________________________ no later than the expiration of ______________________________ from the date of signing this agreement.

1.2. Mudaraba under this agreement is limited/special, in connection with which the Mudarib has the right to direct the provided funds strictly to ______________________________.

1.3. The cost of __________________________________ (business project) is determined by the parties in the amount of _______________________________ soms.

1.4. The Mudaraba under this agreement is open, in connection with which the FCO has the right to receive the provided funds from the Mudarib ahead of time on first demand in case of violation of the terms of the agreement by the Mudarib, while the FCO is not entitled to demand a part of the profit.

2. Financing procedure 

2.1. FCO, in accordance with this agreement, provides the Mudarib with funds in the amount of _______________________________ soms.

2.2. The Mudarib, with the participation of the FCO, states:

- the schedule for the implementation of work on _________________________________, which is an Appendix to this contract;

- the schedule for the provision of financing by the Parties, which is Appendix 2 to this agreement.

FCO provides funds in tranches, according to the work financing schedule, which is Appendix 2 to this agreement, within the amounts provided for by this schedule. The total amount of the sample of funds financed by the FCO should not exceed the amount specified in clause 2.1 of this agreement.

2.3. The FCO provides each subsequent tranche only if the Mudarib submits a report that satisfies the FCO on the use of the previous tranche.

2.4. The FCO provides each tranche to the Mudarib at his request by transferring funds to his account, or to the account of suppliers and contractors who have entered into contractual relations with the Mudarib. Each application must be submitted by the Mudarib to the FCO at least 3 (three) days before the date of the drawdown, and the amount indicated in the application cannot be more than the amount specified in the drawdown schedule.

2.5. In the event of an increase in the cost of ____________________ (business project), the schedule of investments necessary to complete ____________________ (business project) is determined by the parties by an additional agreement.

2.6. The transfer of funds to the accounts of the Suppliers, at the request of the Mudarib, or the issuance of cash to the Mudarib is considered the proper fulfillment of the obligations of the FCO.

2.7. 100% (One hundred) percent of the funds received during the implementation of _____________________________ (business project) or after its completion, from persons acquiring ______________________________ (results of the business project), must be directed by the Mudarib to reimburse the funds received from the FCO for this project specified in paragraph 2.1 of this agreement. The remaining amount is distributed in accordance with clauses 3.1 and 3.2 of the agreement. The transfer by the Mudarib of the amounts of TCF specified in this paragraph is made within 5 working days from the date of conclusion by the Mudarib of the agreement on the implementation of _____________________________ (results of the business project).

2.8. If, during the execution of clause 2.7, the Mudarib fully repaid the debt to the FCO, in the amount in accordance with clause 2.1, taking into account clause 3.3, the remaining part of the incoming funds is distributed by the parties in the proportion: ___% of the FCO, ___% of the Mudarib. The transfer by the Mudarib of the FCO of the amounts indicated in this paragraph is made within 5 working days from the date of the conclusion by the Mudarib of the agreement on ___________________________ (result of the business project).

3. The procedure for the distribution of profits and losses 

3.1. The amounts of funds in the amount specified in clause 2.1, taking into account the repayments in accordance with clauses 2.7 and 2.8 and the appreciation of _________________________ (business project) in accordance with clause 3.3, from the implementation of ________________________ (results of the business project), are used to pay off the debt Mudariba in front of FCO.

3.2. The amount of funds from the implementation of ________________________ (results of the business project) specified in clause 1.2 of this agreement, remaining after their distribution in accordance with clause 3.1 of this agreement, shall be distributed in the following proportion:

a) ________% FCO;

b) _______% Mudaribu.

3.3. If there is an increase in the cost of _________________________ (business project) specified in paragraph 1.2 of this agreement, then this increase in cost is financed in the following order:

a) ________% of the amount required to complete ___________________ (business project) is invested by FCO;

b) ________% of the amount required to complete ___________________ (business project) is invested by the Mudarib.

3.4. In the event of an increase in the cost of _______________________ (business project) specified in clause 1.2 of this agreement, by agreement of the parties, the final amount is additionally determined in clause 2.1, with the corresponding adjustments in clause 3.1 and clause 3.2, with the drawing up of an additional agreement to the contract.

3.5. The distribution of the amounts to be distributed in accordance with Chapter 3 is made within 5 days from the date of the conclusion by the Mudarib of an agreement on the implementation of __________________________ (results of the business project) or its part within ____________________________.

3.6. In the event that losses during the performance of the contract arose as a result of guilty or illegal actions of the Mudarib, these losses are covered by the Mudarib. At the same time, the FCO has the right to receive from the Mudarib the amount transferred earlier under the agreement at the expense of security (pledge), and if it is not enough, then at the expense of other property of the Mudarib.

The absence of guilt is proved by the Mudarib.

4. Rights and obligations of the FCO 

4.1. FCO is obliged:

(a) provide the Mudarib with the agreed amount in the manner prescribed by the agreement (clauses 2.2, 2.3, 2.4 and 2.5);

(b) exercise control over the spending of funds received under tranches;

(c) not interfere with the current activities of the Mudarib for the execution of the contract, limiting itself to general supervision and consultations;

(d) coordinate with the Mudarib the price for the implementation of ____________________ (results of the business project) specified in clause 1.2. At the same time, the Parties agreed that the ____________________________ specified in paragraph 1.2 (the result of the business project) should be realized during the term of this agreement at a price mutually agreed upon by the parties, but not less than ____________________________ soms per unit of goods.

4.2. FCO rights:

(a) FCO has the right to advise Mudarib in the course of his implementation of this agreement, including legal issues and issues of construction expertise with the involvement of relevant organizations;

(b) FCO has the right to control the course of using the received amount by the Mudarib;

(c) the FCO has the right to check the progress of implementation of this agreement by the Mudarib, in connection with which the Mudarib provides the FCO with any reports requested by the latter, as a minimum;

(d) FCO has the right to receive the amounts specified in the agreement within the terms specified in the agreement;

(e) FCO has the right ahead of schedule, in case of non-fulfillment of the terms of this agreement, to demand from the Mudarib the return of the amount provided under the agreement, including at the expense of the pledge.

5. Rights and obligations of the Mudarib 

5.1. Mudarib is obliged:

(a) act in accordance with the requirements of the contract;

(b) make all necessary efforts to achieve the purpose of the contract - to obtain maximum profit;

(c) carry out full control over the quality of ___________________________ (an ongoing business project) in order to comply with the necessary requirements of standards, norms and rules, etc., as well as over the financial discipline of spending money;

(d) act personally (with the participation of his available labor resources) in the course of the implementation of the Agreement. If for the fulfillment of the contract it is necessary to perform certain actions that are not included in the scope of the entrepreneur's activities due to established practice, the Mudarib has the right to involve third parties that have the necessary licenses and permits to carry out work under this contract;

(e) act in good faith and in the manner that is best for the performance of the contract and the achievement of the goal, in accordance with the terms of the contract and the requirements of the law, and in the absence of such conditions and requirements, in accordance with the customs of business transactions or other usually required requirements;

(f) use the funds received from the FCO in accordance with the terms of the agreement. During the implementation of the agreement, the Mudarib is not entitled to use the provided funds for purposes not provided for by this agreement;

(g) keep records of the use of funds (income) received from the FCO and received in the course of the implementation of this agreement, which allows, during the term of this agreement, to determine the profit received to be distributed between the parties to the agreement. Keep a documentary record of all costs related to the execution of this contract. Submit a report on income and expenses for the previous month by the 5th day of the month;

(h) provide reporting that satisfies the FCF on the use of the previous tranche, before receiving the next tranche, provided for in clauses 2.3 and 2.5 of this agreement;

(i) Agree with the FCO the price for the implementation of __________________________ (results of the business project) specified in clause 1.2;

(k) not to terminate this agreement until its full performance;

(k) notify the FCO within 3 working days of the implementation of ____________________________ (the results of the business project).

5.2. The Mudarib has the right:

(a) independently, without the participation of the FCO, conduct business activities in the course of the implementation of the contract, however, the Mudarib is obliged to consult with the FCO in order to effectively fulfill the contract;

(b) receive remuneration for the performance of this agreement, in accordance with clause 3.2.

6. Ways to ensure the fulfillment of obligations under the contract 

6.1. In order to ensure the proper fulfillment of obligations under this agreement, the Mudarib undertakes to provide FCO as a pledge of _______________________ (hereinafter referred to as the "mortgaged property" or "collateral").

6.2. A Mudarib who has not fulfilled or improperly fulfilled an obligation under this agreement shall be liable unless he proves that proper fulfillment was impossible due to force majeure, that is, extraordinary and unavoidable circumstances under the given conditions.

6.3. In the event that losses during the performance of the contract arose as a result of guilty or illegal actions of the Mudarib, these losses are covered by the Mudarib. At the same time, the FCO has the right to receive from the Mudarib the amount transferred earlier under the agreement at the expense of security, and if it is not enough, then at the expense of other property of the Mudarib.

The absence of guilt is proved by the Mudarib.

7. Breach of obligations and liability 

7.1. It is considered that the Mudarib violated his obligations under this agreement, including if the subparagraphs provided for in clause 5.1 of this agreement are violated.

7.2. In the event that a penalty is applied in accordance with Sharia standards for violation of the terms of the contract, as a result of guilty or illegal actions of the Mudarib, the amount of the penalty accrued for the entire period of the contract should not exceed 20 percent of the amount of financing. Funds received in the form of a penalty are directed to charitable purposes. The Sharia Council of the FCO should ensure control over the intended use of funds received in the form of a penalty.

8. Termination of obligations under the contract 

8.1. The procedure for terminating the contract at the initiative of one of the parties.

Each of the parties to the contract may unilaterally terminate it by notifying the other party 10 days before the actual termination, except in the following cases:

(a) when the Mudarib has started to fulfill the contract and is already using the funds in the course of business activities;

(b) if the Parties have determined the period during which the agreement will be valid.

8.2. Other grounds for terminating the obligation:

(a) improper performance of the contract;

(b) the agreement of the parties;

(c) in the case when the Mudarib suffered losses in the amount of the amount provided to him, and the FCO fully reimbursed the amount transferred earlier at the expense of the Mudarib's security, if the losses arose through the fault of the Mudarib or his illegal actions/inactions.

9. Term of the contract and the procedure for its termination 

9.1. This agreement comes into force from the moment of signing and ceases to be valid after the implementation of _____________________________ (the results of the business project) specified in clause 1.2 of this agreement, and the transfer of funds received from the sale of funds, or by agreement of the parties, executed in a proper written form in in the form of an additional agreement.

The implementation of __________________________ (business project) specified in paragraph 1.2 of this agreement must be carried out within a period not exceeding ____ months from the date of completion of ____________________________ (business project).

9.2. The failure of the FCO to exercise or assert any of its rights under this agreement or the delay in exercising them, or the failure to exercise any relief that the FCO may have against the Mudarib, or the delay in exercising or asserting its rights shall not prejudice such right or remedy shall not be construed as a waiver of asserting any of your rights.

10. Unforeseen circumstances (Force majeure) 

10.1. None of the Parties shall be liable in case of non-fulfillment or untimely fulfillment of any obligations under the contract and is not entitled to demand compensation for losses incurred or compensation for lost income, if the specified non-fulfillment or untimely fulfillment is due to force majeure circumstances (force majeure), the presence of which is confirmed in writing by an authorized state or administrative body.

If it is impossible to obtain such confirmation, the burden of proving the occurrence of force majeure lies with the violating Party.

10.2. Force majeure circumstances include: natural disasters (floods, earthquakes, storms, fires and other natural or technical disasters), epidemics, hostilities, sabotage.

In these cases, the Party that has not fulfilled or untimely fulfilled any obligations under the Agreement is obliged to immediately inform the other Party about the occurrence of force majeure circumstances and their consequences (with sending a notice and other information to the other Party regarding force majeure circumstances) and accept all possible measures to limit as much as possible any negative consequences caused by these circumstances.

10.3. If the Party whose performance of obligations is hindered by force majeure fails to notify the other Party of this within 10 days, calculated from the date of occurrence of such circumstances, such Party loses the right to refer to these circumstances as force majeure, with the exception of cases, if these circumstances themselves do not allow notifying the other Party within the specified time.

10.4. If force majeure circumstances are of such a nature that the objectives of the Parties that led to the conclusion of the agreement are significantly and irreparably damaged or the fulfillment of the obligations of any of the Parties under the agreement becomes extremely difficult for more than 6 (six) months in a row, the Parties within one months after the occurrence of these circumstances or a six-month non-fulfillment of obligations by one of the Parties caused by these circumstances, must make a joint decision on the future of the contract.

11. Governing Law and Dispute Resolution 

11.1. This agreement is governed by and interpreted in accordance with the laws of the Kyrgyz Republic.

11.2. Any disagreement that may arise between the parties to this agreement, and any claim brought by one party to the other party arising from this agreement, which has not been settled by agreement of the parties, shall be resolved in court in accordance with the legislation of the Kyrgyz Republic.

12. Notifications 

12.1. This agreement is drawn up and signed in 3 copies, one for the notary's office and one for each of the parties. All copies of the text of this agreement signed by both parties have the same legal force.

12.2. All changes and additions to this agreement are made in the form of additional agreements in writing, and must be signed by authorized representatives of the parties.

12.3. Any notice or request required to be given or made under this agreement to either party must be in writing. Any notice or request shall be deemed to have been given or duly made when handed over, sent by mail or other means of communication (telefax, e-mail, etc.) to the address specified in clause 12.6 or to such address as which the addressee indicated in the notice sent to the party making such notice or making such request.

12.4. The Parties hereby confirm that they are familiar with the terms of this agreement and agree.

12.5. In order to achieve the objectives referred to in Article 12.4 above, the parties have provided their addresses as follows:

 

FCO:

  

Mudarib:

Chairman of the Board

  

Passport: ____________ issued

(or received a power of attorney)

  

____________ MIA __________

_____________________________

  

Registration certificate

_____________________________

  

private entrepreneur

(Signature stamp)

  

reg. N ___________________,

  

  

OKPO ______________________

  

  

Resident at address

  

  

___________________________

  

  

___________________________

  

  

___________________________

  

  

(Signature stamp)

 

 

 

Appendix 2

to the Regulation "On the minimum requirements for standard agreements of microfinance organizations and credit unions, concluded in accordance with the Islamic principles of banking and financing"

 

Murabaha Treaty 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2, December 21, 2016 No. 49/8) 

Bishkek

 

"___" ________ 20__

 

____________________________ represented by _____________________________ acting in accordance with ____________________________, hereinafter referred to as the FCO on the one hand, and ______________________________ represented by ___________________ acting in accordance with ___________________, hereinafter referred to as the "Client" on the other hand, collectively referred to as the "Parties", in view of the fact that that the Client applied to the FCO with an application for obtaining financing according to Islamic principles by acquiring the FCO at the request of the Client for him from

___________________________________________________________________________

___________________________________________________________________________

(seller of goods)

the following product:

___________________________________________________________________________

___________________________________________________________________________

(Name of product)

___________________________________________________________________________

___________________________________________________________________________

(quantity of goods)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

(other product characteristics)

(hereinafter referred to as the "Goods") and the subsequent sale of the FCO of this Good to the Client under the murabaha agreement, and since the Parties made a preliminary exchange of letters, during which the Client offered the FCO to buy the Goods for the purpose of the subsequent sale of the FCO of this Good to the Client under the murabaha agreement and gave the FCO a promise to buy this Good from FCO under a murabaha agreement, and FCO accepted this offer and undertook to buy the Goods for him at the request of the Client and then sell this Good to the Client under a murabaha agreement, have concluded this agreement as follows:

1. FCO, in accordance with the procedure and under the terms of this agreement, sells, and the Client buys in installments the Goods for the sale price of the Goods specified in clause 5 of this agreement. At the same time, FCO reserves the right to check the financial position of the Client until the full payment of the sale price of the Goods.

2. The alienated Goods belong to FCO on the right of ownership, so far it has not been sold to anyone, not donated, not pledged, not leased, not transferred for gratuitous use, is not in dispute, under prohibition (arrest) and is free from the rights of third parties .

3. The alienated Goods are transferred to the FCO to the Client under the act of acceptance and transfer within _____________ days from the moment of ____________________________.

From the moment the Parties sign the act of acceptance and transfer of the Goods, the risk of accidental loss or damage to the Goods, as well as all risks associated with the safety and maintenance of the Goods, are transferred to the Client, from that moment FCO is not responsible for the condition and safety of the Goods.

4. By signing the act of acceptance and transfer of the Goods, the Client expresses his agreement with the quality and condition of the purchased Goods. If the Client does not sign the act of acceptance and transfer of the Goods, the FCO has the right to refuse to execute this agreement, terminate it unilaterally, and then sell the Goods to third parties and foreclose on the pledged property in the manner determined in accordance with the pledge agreement.

5. By agreement of the Parties, the sale price of the Goods is determined in the amount of ____________________________ soms, of which:

a) _________________________ soms - the purchase price of the FCO of the alienated Goods;

b) _________________________ soms - the amount of duties, taxes and fees paid by the FCO, provided for by the legislation of the Kyrgyz Republic;

c) _________________________ soms - the amount of FCO expenses incurred in connection with the acquisition of the Goods by the FCO and the conclusion of this agreement;

d) _________________________ soms - the amount of the markup.

6. Payment by the Client of the FCO of the sale price of the Goods is made in installments, within _____ months from the date of signing by the Parties of this agreement, in regular installments in accordance with the payment schedule attached to the agreement. The Client makes monthly payments under this agreement in accordance with the payment schedule to the FCO cash desk in cash or by transfer to the FCO account. In this case, the final settlement is made no later than "___" ___________ 20__.

7. From the moment of the final settlement, the Parties will have no claims against each other. At the same time, the Parties are notified that in the event of a dispute between the Parties, the sale price of the Goods specified in this agreement is the initial one.

8. Proper fulfillment of the Client's obligations under this agreement is ensured by the pledge agreement N _______ dated __________________, concluded between the Parties to this agreement and _____________________ (hereinafter referred to as the "collateral agreement").

9. In case of non-fulfillment or improper fulfillment by the Client of the obligations stipulated by this agreement, the FCO has the right to foreclose on the pledged property in the manner determined in accordance with the pledge agreement.

10. This agreement comes into force from the moment of its signing by the Parties. The ownership of the Goods is transferred from the FCO to the Client from the moment the Parties sign the act of acceptance and transfer of the Goods.

11. In the event that the Client does not make the next payment for the Goods sold in installments within the period established by the payment schedule, the Client shall pay a penalty in the amount of ____% of the amount of financing. At the same time, the amount of the penalty accrued for the entire period of the contract should not exceed 20% of the amount of financing. Funds received in the form of a penalty are directed to charitable purposes. The Sharia Council of the FCO should ensure control over the intended use of funds received in the form of a penalty.

12. The content of this agreement was explained to the Parties, the Parties are familiar with and agree with all the terms of this agreement.

13. The parties confirm that they speak the language in which this agreement is prepared for signing, are not incapacitated, do not suffer from diseases that prevent them from understanding the essence of this agreement, and that there are no circumstances forcing them to make a deal on extremely unfavorable conditions for themselves.

14. All costs associated with the conclusion of this agreement shall be borne by ____________________________.

15. This agreement is made in 2 copies in _____________ language, one copy for each of the Parties. All copies have equal legal force.

Signatures:

1. ______________________________

2. ______________________________

 Appendix 3

Treaty of Salam 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2) 

Bishkek

 

"__" __________ 20__

__________________________________________________________ represented by __ ________________________________, acting in accordance with ___________________________________________, hereinafter referred to as the "Buyer/FCO", on the one hand, and _____________________________________________ represented by ____________________, acting in accordance with _________________________________________________, hereinafter referred to as the "Seller", on the other hand, hereinafter referred to as the "Parties ", have agreed as follows:

1. The Subject of the Agreement 

1.1. The subject of the Salam agreement is the future delivery by the Seller of the goods:

______________________________ (name of goods), hereinafter referred to as the "Goods".

1.2. The Buyer/FCO pays for the Goods _____________________________ (specification) at the following price:

Goods __________________________ (name of goods) at a price of _________ soms per _________ kilogram, etc.

1.3. The total amount for the entire volume of the goods of this Agreement is ________________ som.

1.4. Payment for the Goods is made ___________________________________ (at the time of conclusion of the contract / by agreement of the seller within three working days).

1.5. With the consent of the Seller, the Buyer/FCO can make payment within three working days after the conclusion of the contract.

1.6. Proper fulfillment of the Seller's obligations under this Agreement is ensured by the pledge agreement No. _____ dated ______________, concluded between the Parties to this Agreement (hereinafter referred to as the "collateral agreement").

1.7. In case of non-fulfillment or improper fulfillment by the Seller of the obligations stipulated by this Agreement, the Buyer/FCO has the right to foreclose on the pledged property in the manner prescribed in the pledge agreement.

1.8. This Agreement shall enter into force upon its conclusion by the Parties. The ownership of the Goods passes from the Seller to the Buyer/FCO from the moment the Parties conclude the agreement and pay in full according to the agreement.

1.9. The goods will be delivered by the Seller "__" ___________ 20__.

1.10. The delivery of goods is carried out by the Seller by shipment of goods to the Buyer/FCO __________________________________________ (by rail, water, air, etc.).

1.11. The alienated Goods are transferred by the Seller to the Buyer/FCO under the act of acceptance and transfer on the due date.

2. Rights and obligations of the parties 

2.1. Rights and obligations of the Seller:

2.1.1. The Seller undertakes to deliver the Goods in the manner and under the terms of this Agreement.

2.1.2. If the Buyer/FCO fails to fulfill the obligation to pay the Seller in the amount and within the time period stipulated by the agreement, the Seller may terminate the agreement unilaterally or refuse to fulfill its obligations with the obligatory notification of the Buyer/FCO in writing.

2.1.3. The Seller has the right to deliver the Goods ahead of the time specified in this Agreement, provided that the Goods meet the requirements of this Agreement.

2.1.4. The Seller undertakes to inform the Buyer/FCO about the dispatch of the goods by sending ___________________________________ (letters, faxes, etc.).

2.2. Rights and obligations of the Buyer/FCO:

2.2.1. The Buyer/FCO pays for the Goods in accordance with clause 1.4.

2.2.2. The Buyer/FCO pays by bank transfer/cash for the Goods or in the form of interchangeable goods.

2.2.3. The Buyer / FCO undertakes to accept the Goods that meet the terms of this Agreement.

2.2.4. In case of non-compliance of the Goods with the agreed specification, the Buyer/FCO has the right to refuse the Goods or, by agreement of the Parties, accept the Goods at a reduced cost.

2.2.5. In the event that the Seller offers the Goods of a higher quality than specified in the contract, the Buyer / FCO must accept the Goods, unless the Seller asks a higher price for a higher quality.

2.2.6. In the event that the Seller is unable to fulfill its obligation or the Seller does not have all or part of the Goods in stock on the due date, the Buyer/FCO has the right to:

a) wait until the Goods are in stock or provide a longer period of time for the delivery of the Goods (the written consent of the Buyer/FCO);

b) terminate the contract and collect the paid funds.

3. Responsibility of the Parties and the procedure for resolving disputes 

3.1. The parties are released from liability in case of non-fulfillment or untimely fulfillment of any obligations under the contract and are not entitled to demand compensation for losses incurred or compensation for lost income, if the specified non-fulfillment or untimely fulfillment is due to force majeure circumstances (force majeure), the presence of which is confirmed in writing by the authorized for that by a state or administrative body.

Force majeure circumstances are floods, fires, earthquakes and other natural disasters, man-made disasters, the introduction of martial law in the relevant territory, riots.

3.2. Disputes and disagreements that may arise during the execution of this Agreement will, if possible, be resolved through negotiations between the Parties.

3.3. Any disagreement that may arise between the Parties to this Agreement, and any claim brought by one Party to the other Party arising from this Agreement, which has not been settled by agreement of the Parties, shall be resolved in court in accordance with the legislation of the Kyrgyz Republic.

3.4. If both Parties agree, this Salam Agreement may be canceled in its entirety in exchange for a full refund of its value.

3.5. The Parties may cancel this Salam Agreement partially, i.e. cancel the delivery of part of the goods in exchange for reimbursement of the corresponding part of the contract value. Changes to the terms of the contract must be documented.

3.6. Any changes and additions to this Agreement are valid only if they are made in writing and signed by duly authorized representatives of the Parties. Appendixes to this Agreement constitute its integral part.

3.7. In all other respects that are not provided for by this Agreement, the Parties are guided by the current legislation of the Kyrgyz Republic.

4. Final provisions 

4.1. This Agreement is made in 2 copies in ____________ language, one copy for each of the Parties. All copies of the text of this Agreement signed by the Parties shall have the same legal force.

4.2. The Parties hereby confirm that they are familiar with the terms of this Agreement and agree.

4.3. After the Parties fulfill their obligations in accordance with this Agreement, the Parties do not have any claims against each other.

Sides: 

Salesman:

 

Buyer/FCO:

_________________

Name

 

_________________

Name

_________________

Address:

 

_________________

Address:

_________________

(signature, seal)

 

_________________

(signature, seal)

 

Appendix 4

Treaty Parallel Salam 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 18, 2015 No. 17/2, December 21, 2016 No. 49/8) 

Bishkek

 

"__" __________ 20__

 

_______________________________________________ represented by _________________________, acting in accordance with __________________________, hereinafter referred to as the "Seller/FCO", on the one hand, and __________________________________ represented by ____________________________________________, acting in accordance with _________________________________________________, hereinafter referred to as the "Buyer", on the other hand, hereinafter referred to as the "Parties ", have agreed as follows:

1. The Subject of the Agreement 

1.1. The subject of the contract is the future delivery by the Seller/FCO of the goods:

______________________________________ (name of goods), hereinafter referred to as the "Goods".

1.2. The buyer pays for the Goods ____________________ (specification) at the following price:

Goods ____________________________ (name of goods) at a price of ________ soms per _______ kilogram, etc.

1.3. The total amount for the entire volume of the Goods of this Agreement is __________________ som.

1.4. Payment for the Goods is made _______________________________________________ (at the time of conclusion of the contract / by agreement of the Seller within three working days).

1.5. The goods will be delivered by the Seller/FCO "__" __________ 20__.

1.6. The term of this Agreement begins from the moment of conclusion of this Agreement.

1.7. The delivery of goods is carried out by the Seller / FCO by shipping the goods to the Buyer _________________________________ (by rail, water, air, etc.).

1.8. The alienated Goods are transferred by the Seller / FCO to the Buyer under the act of acceptance and transfer on the due date.

2. Rights and obligations of the Parties 

2.1. Rights and obligations of the Seller:

2.1.1. The Seller / FCO undertakes to deliver the Goods in the manner and under the terms of this Agreement.

2.1.2. The Seller/FCO has the right to deliver the Goods ahead of the time specified in this Agreement, provided that the Goods meet the requirements of this Agreement.

2.1.3. The Seller / FCO undertakes to inform the Buyer about the dispatch of the goods by sending ___________________________________. (Letters, fax messages, etc.).

2.2. Rights and obligations of the Buyer:

2.2.1. The Buyer pays for the Goods in accordance with paragraph 1.4.

2.2.2. The Buyer pays by bank transfer/cash for the Goods or in the form of interchangeable goods.

2.2.3. The buyer undertakes to accept the goods that meet the terms of this agreement.

2.2.4. If the Goods do not comply with the agreed specification, the Buyer has the right to refuse the Goods or, by agreement of the Parties, accept the Goods at a reduced cost.

2.2.5. In the event that the Seller/FCO offers the Goods of a higher quality than specified in the contract, the Buyer must accept the Goods, unless the Seller/FCO asks a higher price for higher quality.

2.2.6. In the event that the Seller / FCO cannot fulfill its obligation or the Seller / FCO does not have all or part of the Goods in stock on the due date, the Buyer has the right to:

a) wait until the Goods are available or provide a longer period of time for the delivery of the Goods (the written consent of the Buyer);

b) terminate the contract and collect the paid funds.

3. Responsibility of the parties and the procedure for resolving disputes 

3.1. The parties are released from liability in case of non-fulfillment or untimely fulfillment of any obligations under the contract and are not entitled to demand compensation for losses incurred or compensation for lost income, if the specified non-fulfillment or untimely fulfillment is due to force majeure circumstances (force majeure), the presence of which is confirmed in writing by the authorized for that by a state or administrative body.

Force majeure circumstances are floods, fires, earthquakes and other natural disasters, man-made disasters, the introduction of martial law in the relevant territory, and riots.

3.2. Disputes and disagreements that may arise during the execution of this Agreement will, if possible, be resolved through negotiations between the Parties.

3.3. Any disagreement that may arise between the Parties to this Agreement and any claim brought by one party to the other party arising from this Agreement, which has not been settled by agreement of the parties, shall be resolved in court in accordance with the legislation of the Kyrgyz Republic.

3.4. If both Parties agree, this Parallel Salam Agreement may be canceled in its entirety in exchange for a full refund of its cost.

3.5. The Parties may amend this Parallel Salam Agreement partially, i.e. cancel the delivery of part of the goods in exchange for reimbursement of the corresponding part of the contract value. Changes to the terms of the contract must be documented.

3.6. Any changes and additions to this Agreement are valid only if they are made in writing and signed by duly authorized representatives of the Parties. Appendixes to this Agreement constitute its integral part.

3.7. In all other respects that are not provided for by this Agreement, the Parties are guided by the current legislation of the Kyrgyz Republic.

4. Final provisions 

4.1. This Agreement is made in 2 copies in ___________ language, one copy for each of the Parties. All copies of the text of this Agreement signed by the Parties shall have the same legal force.

4.2. The Parties hereby confirm that they are familiar with the terms of this Agreement and agree.

4.3. After the Parties fulfill their obligations in accordance with this Agreement, the Parties shall not have any claims against each other.

Sides: 

Salesman:

 

Buyer/FCO:

_________________

Name

 

_________________

Name

_________________

Address:

 

_________________

Address:

_________________

(signature, seal)

 

_________________

(signature, seal)