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BANK OF KHYBER ACT, 1991 BANK OF KHYBER ACT, 1991 [ACT No. XIV of 1991] [Gazette of N.‑W.F.P. Extraordinary, 20th, June, 1991] An Act to establish the Bank of Khyber in the North‑West Frontier Province 19. Business which the Bank is authorized to transact. In addition to the role that may be assigned to it to function as principal banker/treasury to Government, the bank would carry on and transact commercial banking and investment business within the Province and subject to approval of the Competent Authority under the law for the time being in force; at any place/places in and outside Pakistan hereinafter specified, i.e.‑ (a) to accept/receive deposits and maintain cash and various other accounts of the customers as per custom, usage, practice and laws governing commercial banks in Pakistan. Also to open, operate on current, overdraft, loan and other accounts, to deposit any money with or borrow or obtain accommodation, money or facilities, with or without securities from any bank or banks, finance/discount houses in the Province and other provinces of Pakistan and Central Banks of Countries abroad where the Bank's branches or representative offices are located [Full‑stop subs. by comma by N.‑W.F.P. Act, 9 of 1996; S. 10] [,][Added by N.‑W.F.P. Act, 9 of 1996, S. 10.][and from Pakistani and foreign donors and development agencies, unilateral, bilateral, multilateral and regional, and financial institutions including, but not limited to, the Asian Development Bank, Deutsche Investition‑sued Entwick lung sgesellschaft mbh, the International Finance Commission, the World Bank, and their respective affiliates.] (b) to place its funds with other banks and accept other bank funds and finalize agency arrangements/correspondent relationship with Banks within and outside the Province and local as well as foreign banks in any province of Pakistan or abroad. (c) to draw, make, accept, execute, endorse, discount, rediscount, execute and negotiate bills, drafts, cheques, warrants, promissory notes and other negotiable instruments to issue guarantees and indemnities, and to give valid and effectual discharge; (d) to buy, sell, hypothecate, pledge, mortgage, endorse, negotiate, transfer and or otherwise deal in promissory notes, debentures, bonds, Treasury Bills, shares of companies and all other kinds of securities including government securities, trustee securities, municipal bonds etc. receive or pay principal and mark up amount. However, in case of Government's guarantee no other securities would be required; (e) to receive and hold in safe custody securities, or other movable property whatsoever. To recover and take possession of and manage all lands, houses, buildings and other property mortgaged to or otherwise manage the same and to make, sell and dispose of all lands, houses, goods, merchandise and property of every description, whether belonging to the Bank absolutely or in trust or as security, and for any such purpose to exercise all such powers and authorities and adopt proceedings as the Bank might or could exercise; (f) to purchase or take on lease or other terms any lands, houses, or buildings for the purpose of offices or premises suitable for carrying on its business at any place and to build, alter and furnish any offices, houses or premises; (g) to sue or be sued, to commence, prosecute, continue and defend all actions, suits or legal proceedings whether civil, criminal or revenue including proceedings to procure or establish the bankruptcy or insolvency of any person, firm, company or corporation or liquidation or winding up of any company, to compromise or refer to arbitration any claims or disputes either in such suits or proceedings or otherwise; to appoint solicitors, advocates, pleaders and other legal agents; to make, sign, verify, execute plaints, petitions, written statements, warrants of authority or any other papers, writings or documents expedient or necessary to be made, signed, executed, verified presented or filed; (h) to carry on any other investment finance business specifically allowed by the Controller of Capital Issues or any other authority having jurisdiction with the exception of Insurance business as defined in the Banking Companies Act, 1962 and the Insurance Act, 1938; (i) subject to the consent of the Controller of Capital Issues or any other authority having jurisdiction, to carry on all or any of the following business:‑‑ (i) to undertake the business of leasing and leasing operations of all kinds of property, plant, machinery and equipment, etc; (ii) to constitute trust and act as trustees of any deeds with a view to the issuing of Modarabas, (j) the advancing and lending of money to Courts of Wards upon the security of estates in their charges or under their superintendence and the realization of such advances or loans and any interest due thereon; (k) the investing of the funds of the Banks in, or the underwriting of any stocks, funds, shares, securities, participation term certificates, bonds or scripts or other securities for money issued by a public limited company or any corporation established by or under any law for the time being in force or under the authority of the Government or the State Bank of Pakistan, converting and covering the same into money. when required, and altering and transposing any such investment for or into any other such investments; (l) the paying, receiving, collecting and permitting money, bullion and securities under any agreement with the State Bank of Pakistan as its agent on behalf of Government, undertaking and transacting any business which the State Bank of Pakistan may from time to time entrust to it; (m) the taking over of the business, including the capital assets and liabilities of any other bank, with the sanction of Government; (n) with the previous permission in writing of Government and the State Bank of Pakistan:‑‑ (1) the investing of the funds of the bank in any bank incorporated outside Pakistan; and (2) participating in the management and administration of any such bank in which the funds of the Bank have been invested; (o) the advancing of money on non‑interest basis and according to the various modes of finances as approved by the State Bank of Pakistan from time to time; (p) the undertaking of lease financing; (q) to open documentary letters of credit for imports as well as exports after completing all the statutory requirements; (r) generally, the doing of all such matters and things as may be incidental or subsidiary to the transacting of the various kinds of business including foreign exchange business hereinbefore specified.