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ORDINANCE XXV OF 1997 ORDINANCE XXV OF 1997 BANKING COMPANIES (RECOVERY OF LOANS, ADVANCES, CREDITS AND FINANCES) ORDINANCE, 1997 An Ordinance to repeal, and with certain modifications to consolidate and re‑enact the banking Companies (Recovery of Loans) Ordinance, 1979 and the Banking Tribunals Ordinance, 1984 (Gazette of Pakistan, Extraordinary, Part I, 4th February, 1997] No.F.2(1)197‑Pub., dated 4‑2‑1997.‑‑‑The following Ordinance made by the President is hereby published for general information: Whereas it is expedient to repeal and with certain modifications to consolidate and re‑enact the Banking Companies (Recovery of Loans) Ordinance, 1979 (XIX of 1979) and the Banking Tribunals Ordinance, 1984 (LVIII of 1984); And whereas the National Assembly is not in session and the President is satisfied that the circumstances exist which render it necessary to take immediate action; Now, therefore, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance, namely:‑‑ 2. Definitions.‑‑In this Ordinance, unless there is anything repugnant in the subject or context,‑‑ (a) "banking company" means‑‑ (i) any company whether incorporated within or beyond Pakistan which transacts the business of banking in Pakistan or carries one or more businesses specified in section 7 of the Banking Companies Ordinance, 1962 (LVII of 1962); (ii) a bank as defined in the Banks (Nationalization) Act, 1974 (XIX of 1974); (iii) a scheduled bank as defined in the State Bank of Pakistan Act, 1956 (XXXIII of 1956); (iv) a Government Saving Bank to which the Government Saving Bank Act, 1873'(V of 1873) applies; and (v) a company, an institution or an organization specified in the Schedule to this Ordinance; (b) "Banking Court" means‑‑‑ (i) in respect of a case in which the outstanding amount of claim based on loan or finance does not exceed ten million rupees or the trial of offences under this Ordinance, the Court established under section 4 of this Ordinance; and (ii) in respect of any other case, the High Court;' (c) "borrower" means a person who has obtained a loan under a system based on interest from a banking company and includes a surety or an indemnifier; (d) "customer" means a person who has obtained finance under a system which is not based on interest from a banking company or is the real beneficiary A such finance, and includes a surety or an indemnifier; (e) "finance" includes accommodation or facility under a system which s not based on interest but provided on the basis of participation in profit and loss, mark‑up or mark‑down in price, hire‑purchase, equity support, lease, rent sharing, licensing, charge or fee of any kind, purchase and sale of any property, including commodities, patents, designs, trade marks and copyrights, bills of exchange, promissory notes or other instruments with or without buy‑back arrangement by a seller, participation term certificate, musharika certificate, modaraba certificate, term finance certificate or any other mode other than an accommodation or facility based on interest and also includes guarantees, indemnities and any other obligation, whether fund based or non‑fund based, and any accommodation or facility the real beneficiary whereof is a person other than the person to whom or in whose name it was provided; (f) "loan" means loan, advance and credit under a system based on interest and includes‑‑‑ (i) an advance cash `credit, overdraft, packing credit, a bill discounted and purchased or any other financial accommodation provided by a banking company to a borrower; (ii) a guarantee, indemnity, letter of credit or any other financial engagement which a banking company may give, issue or undertake on behalf of a borrower; (iii) a benam loan, that is, a loan the real beneficiary or recipient whereof is a person other than the person in whose name the loan is advanced or granted; (iv) any amount due from any borrower to a banking company under a decree passed by a Civil Court or an award given by an arbitrator; and (v) any loan due from any borrower to a Banking Company which is the subject‑matter of any pending suit, appeal or revision before any Court; and (g) "rules" means rules made under this Ordinance.