Credit Grant Policy

This Credit Grant Policy is effective dated: June 01, 2024

Control Document: GEF-PP-016, Ver. 1.0

Purpose

The purpose of this policy is to ensure that all credit transactions conducted by the service provider are secured through an instrument cheque. This policy aims to minimize the risk of default and protect the financial interests of the service provider.

Scope

This policy applies to all service providers involved in granting credit to traders pertaining to transactions via galaxefi platform.

Definitions

  • Instrument Cheque: A cheque that serves as a guarantee for the credit extended, which can be presented for payment in case of default.
  • Credit: Any form of deferred payment or extension of goods/services without immediate full payment.
  • Issuer/Issuing Party: A trader in this scenario is the issuer or the issuing party.

Policy Guidelines

No Credit Without Cheque

  • Credit will only be granted upon receiving an instrument cheque from the trader requesting credit.
  • The cheque must cover allowed amount by the service provider as a credit.

Verification of Cheques

  • The service provider may ask for a valid bank statement and an account maintenance certificate to ensure that all received cheques are from reputable and verifiable sources.
  • In order to verify the authenticity of the cheques the service provider can request galaxefi for an eCIB (Electronic Credit Information Bureau, State Bank of Pakistan) check of the trader.

Documentation and Records

  • Platform maintain detailed records of all cheques received as instruments for credit, including cheque number, date, amount, issuer, and terms of the credit agreement.
  • It is the responsibility of the service provider to store cheques securely to prevent loss, theft, or damage.

Presentation of Cheques

  • Service provider to present the cheque for payment immediately upon default of the credit terms by the issuing party.
  • galaxefi through service providers monitors the status of the presented cheques and follow up promptly on any issues such as dishonor.

Handling Dishonored Cheques

  • If a cheque is dishonored, galaxbot will promptly notify the issuer and request immediate resolution via IRR (Instrument Replacement Request) type I or type II as the case may be.
  • Service Provider to escalate unresolved issues as per legal procedures, including potential legal action if necessary.

Service Provider Responsibility

  • Service Providers must adhere strictly to this policy and report any violations or concerns to galaxefi’s legal department.
  • Training will be provided to all relevant stakeholders to ensure understanding and compliance with this policy.

Indemnification

  • galaxefi shall not be liable for any losses or damages incurred by any party due to the dishonor of a post-dated cheque (PDCs).
  • The issuer of a dishonored cheque agrees to indemnify and hold galaxefi harmless from any claims, demands, or legal actions arising from the dishonor of such cheques.
  • galaxefi assumes no responsibility for the consequences of any errors or omissions in the processing of PDCs and disclaims all liability in connection with the use of PDCs.

Penalties for Non-Compliance

Traders found to be in violation of this policy may face legal action, up to and including the filing of an FIR (First Information Report) with the police, which may subsequently result in a court case.

Policy Review and Updates

This policy will be reviewed annually and updated as necessary to ensure continued compliance with Pakistani laws and the operational needs of galaxefi.

Quick Contact

By using our Services, you acknowledge that you have read, understood, and agree to comply with this Credit Grant Policy. For questions or concerns about this Policy, please use the following form: