Featuring
Funded Facilities
Funded Facilities are credit limit involving funds/ money of banks /Financial Institutions.
- Running Finance (RF).
- Cash Finance (CF).
- Running Finance Money market (RF – MM).
- Short Term Finance (STF).
- Finance Against Trust Receipt (FATR).
- Finance Against Imported Merchandise (FIM).
- Finance Against Packing Credit (FAPC I & II).
- Finance Against Foreign Bill (FAFB).
- Foreign Currency Export Finance (FCEF Pre/Post Shipment).
- Foreign Currency Import Finance (FCIF).
- Foreign Documentary Bill Purchased (FDBP).
- Local Documentary Bill Purchased (LDBP).
Documents Required for Funded facility
RF / Cash Finance
- Demand Promissory Note
- Agreement of Finance
- Letter of Continuity
FAPC/FAFB FCIF/ FCEF/FIM
- Demand Promissory Note
- Agreement of Finance
Terms Finance
- Demand Promissory Note
- Agreement of Finance, Repayment Schedule
FATR
- Demand Promissory Note
- Agreement of Finance
- Trust Receipt Form
FDBP/ LDBP
- Letter of Buy back cum Indemnity
Non- Funded Facilities
Non- Funded Facilities
- Non- Funded Facilities are credit limits not involving fund / money of banks / financial institutions. But it can be converted into funded in case of some eventualities e.g., customer fails to fulfil his commitment in time.
- LC Sight (Foreign / Local)
- LC Usance / Acceptance (Foreign / Local)
- Letter of Guarantee (Bid bonds, Performance bond, Deposit Mobilisation, Advance payment)
Documents for Non-Funded Facilities
Letter of Credit (Sight)
- Facility Offer Letter
- Deposit of title to goods
Letter of Credit (Usance / Acceptance)
- Facility Offer Letter
- Accepted Draft.
Letter of Guarantee
- Facility Offer Letter
- Counter Guarantee
Types of Securities
Hypothecation
Hypothecation is a security for payment of a debt / other obligation that does not pass title of property or any right to its possession to the person to whom it is hypothecated. It includes Hypothecation over Movables & Receivables, Hypothecation over Plant & Machineries etc. The documents to be obtained in this type of Security is Letter of Hypothecation
Types of Hypothecation charge
- Exclusive charge.
- Ranking Charge.
- Pari Passu charge through NOCs.
- Joint Pari Passu Hypothecation charge.
Pledge of Commodities
Pledge by definition is bailment of goods as security for payment of debt or performance of a promise. The goods securing the debt are in possession of the lender (bank’s nominated Muccadum) which has the right to sell them in case of default by the borrower, but only after giving reasonable notice to the borrower. On request of borrower Pledge of goods released to them against delivery order on proportionate payment of the goods. The document to be obtained in this type of Security is Letter of Pledge.
Lien / Set Off
Lien is bank’s right to withhold property on which lien is marked, until the claim is paid. The borrower remains the owner of the assets but the lender has actual rights on the assets. The bank has a right to dispose of the security after giving a reasonable notice to the borrower The document to be obtained on this type of Security is Letter of Lien, Letter of Lien & Set off etc.
The securities include
- Lien over Bank deposits & TDR.
- Lien over Government Securities (DSC / SSC etc).
- Lien over Shares / Units of Mutual fund etc.
- Lien over Saving, Current account etc.
Mortgage
Mortgage is a transfer of interest in specific immovable property as security for the payment of debt. The transferor of the property is called ‘Mortgagor’ and the transferee is called ‘Mortgagee’. The instrument by which the transfer is affected is called Mortgage Deed and Memorandum Deposit of Title Deed.
Types of Mortgages include
Registered Mortgage
- To be acceptable by banks in Pakistan is to be created through Mortgage Deed that must be registered with the Registrar of Property.
Equitable Mortgage
- To be created through Memorandum of Deposit of Title Deed. In case the owner of the property is a limited company than a charge is also to be registered with the Security & Exchange Commission of Pakistan for lenders to accept it as collateral / security against the financed amount.
Constructive Equitable Mortgage
- Is required by lenders in case the original property documents is held by another financial institution / banks. In addition, following set of documents are required to secure limits by banks not holding the original property papers in their custody:
- A letter of holding of the original property document from the relevant bank / financial institution confirming custody of the complete set of title / property documents.
- Certified True Copies of the entire set of property documents.
- Non-Objection Certificate for creating a charge against the financed limit offered to the borrower and its subsequent registration.
- Creating of Pari-Passu / On equal footing charge on the proposed property with the Security & Exchange Commission of Pakistan.
Personal Guarantee
Promise made by an individual obligating himself/ herself to repay outstanding bank finance in case the actual borrower defaults in settling the unpaid amount
Corporate Partnership With
