Apply the various concepts on following short cases and answer as directed. The short cases must be answered using the concepts you have studied in this course.

a) Kashmir textile is the producers of cotton fabrics and export the same to its middle-east clients. The mill owner requires to buy raw cotton from Punjab for its forecasted demand this year. For financing the procurement, they have estimated a capital requirement of PKR 10 Million. The company wants to finance the project by borrowing from a financial institution. Name any possible financial institutions they can approach for the same.

b) Mr. Aslam issued a cheque of Rs. 50,000/- drawn on Habib bank limited on 15th March 2020. Mr. Aslam, without crossing that cheque gave it to Mr. Asghar against a purchase of Motorcycle. Mr. Asghar kept that cheque considering safe for him and approached bank Al-Habib limited on 3rd August 2020. The bank refused to pay the cheque on that date. Mr. Asghar approached Mr. Aslam for Non-Payment and gave him a legal notice against cheque dishonor. Which party is at fault? Is Mr. Aslam responsible for this dishonor? Why or why not? Can Mr. Aslam sue his bank for non-payment? Why?

c) Mr. Majid from Islamabad, a meat merchant, received an order from Mr. Sajid. Upon the delivery of stock, Sajid paid Rs. 233,000 to Majid. Later on Majid refused the payment on the premise that the currency notes are old and not trading now. Explain in detail which characteristics of Money those old currency notes were lacking? Do Majid have this right to reject the payment? Why or why not? Explain with proper justification.

d) Mr. Saad importer in Pakistan and Mr. Saeed exporter in China agreed on the purchase of 100,000 doses of COVID Vaccine. The payment terms included payment through letter of credit. From Pakistan, National Bank of Pakistan was involved and Chinese National Bank agreed upon providing services on behalf of Mr. Saeed. Mr. Saeed approached a local manufacturer in China to order vaccine to deliver the same to Mr. Saad. The local manufacturer guaranteed a 2% rebate for Mr. Saeed on total sale value. The whole transaction was backed up by letter of credit as explained earlier which contains different clauses including the advance payment for keeping vaccine in prescribed temperature. You are required to identify the type of LC used in this transaction. Further, if importer fails to pay the transaction cost, which party will be held responsible? Who will decide the remuneration payable to NBP? What rights can NBP exercise in case of non-payment against the documents?

e) Habib Bank Limited issued a loan worth Rs. 10 million for 5 years to Mr. Wahid and pledged some Gold jewelry which was already kept in banks locker. Wahid paid 5 million regularly in 3 years but failed to pay the remaining due to some business losses. Bank issued multiple notices to Wahid but there was no payment made from Wahid. Wahids wife approached bank to use the locker and take that jewelry with her but bank informed her that she is not able to access that because it is held with bank against non-payment of loan. Discuss, do that bank have any right to hold Wahids jewelry? Why? Can bank sell the jewelry if Wahid fails to pay the amount? Why?