The Presidents/ CEOs,
All Banks/DFIs

Dear Sirs/Madam,

REFERENCE AGAINST WILFUL DEFAULTERS UNDER SECTION 31-D OF NA ORDINANCE

Please refer to our Letter No. BSD/RU-55/X/NAB/14084/2001 dated 2nd October, 2001 (copy enclosed for ready reference) on the captioned subject.

2. It has been noted that financial institutions do not exercise due diligence while forwarding the cases of loan defaulters to SBP for referring the same to NAB under Section 31-D which results in wastage of time and resources.

3. In order to further streamline the processing of cases for reference to NAB, it has been decided as under:-

a. Henceforth information circulated vide our above referred letter may now be furnished as per enclosed format.

b. The latest position should be provided in the enclosed performa.

c. The Banks/DFIs should obtain legal opinion and provide a copy of the same with reference/documents regarding completeness of the case in all respect with particular reference to the securities/ charge documents before forwarding the same to SBP.

d. The Banks should also confirm that personal guarantees wherever stipulated in terms of loan/facility have been obtained from the directors of the company. Copies of the same should be forwarded to SBP alongwith the case.

4. Besides, the Banks/DFIs should immediately inform about any change/ development in the case, subsequent to its submission to SBP.

5. Other instructions issued in the matter from time to time will remain unchanged.

Please acknowledge receipt.

Encl: As Above.