FORM-3

ISLAMIC DEVELOPMENT BANK

SCHOLARSHIP BOND

KNOWN ALL MEN by these presents that I,

______________________________________________________________
(student name)
(hereinafter called "Obliger") of ______________________________________
(country name)
and ___________________________________________________________
(full name of first surety)
and ___________________________________________________________
(full name of second surety)
of _____________________________ are jointly and severally bound unto the
(country name)
Islamic Development Bank, an international financial institution having its
Headquarters in Jeddah, Kingdom of Saudi Arabia, of Post Office Box Number
5925, Jeddah 21432 (hereinafter called "The Bank") in the amount which the
IDB will spend for the duration of scholarship as a loan which will be repaid to
the Bank or such other Foundation/Trust/Waqf/Society to which the Bank may
assign its rights, in equivalent ______________(name of local currency) at the
rates of exchange prevailing at the dates of payment, for which payment to be
well and truly made, we jointly and severally bind ourselves, our heirs,
executors, administrators and assign by these presents:

SEALED with our seals this __________ day of ____________ Two Thousand
(date) (month)
and __________________________________________________________.

WHEREAS under a scheme for the award of financial assistance of any kind
(hereinafter referred to as "Scholarship Programme") for studying at ________
______________________________________________________________
(University and country names)
and under the terms of the said scheme as set out in the Schedule hereto
(Schedule 1), the Obliger is required to enter into a bond duly to comply with
the conditions set out hereunder:

1- NOW THE ABOVE WRITTEN OBLIGATIONS are conditioned to be

void in the case the said Obliger shall:

(a) Complete the course for which the scholarship was awarded in
accordance with the terms and conditions as set out in Schedule
(1) hereto and follow such other conditions and directions as the
Bank may lay down from time to time provided that the Bank gives
due notice in writing to the Obliger of such conditions and or
directions.

(b) Repay the total amount which the IDB will spend for the duration
 of the scholarship as a loan in equivalent ______________
(name of local currency), at the rates of exchange prevailing at
the dates of payment, to the Bank, or such other
Foundation/Trust/Waqf/Society, to which the Bank may assign its
rights after the completion of the studies and employment.
However, the said sum of _____________ (name of local
currency) shall carry no interest and shall be payable in
reasonable installments.

(c) Serve the community in the capacity for which his/her course of
institution is adjudged by the Implementation Committee
formulated for the execution of the Programme in the student's
country, which is also known as the IDB Counterpart for the
Scholarship Programme, to have rendered him/her competent
and continue in that service for a period equal to the period of
his/her study during which he/she was on scholarship.

2- The Bank may, by written notice to the Obliger and/or Surety, assign its
rights hereto to any Foundation/or Trust/Waqf or Society in
_____________.
(country name)

3- The law applicable to this Bond shall be the law of

_____________________.
(country name)

PROVIDED ALWAYS AND IT IS HEREBY AGREED:

(i) That the Bank, on consultation with the Implementation

Committee formulated for the execution of the Programme in the
student's country, shall have power to release him/her from such
obligations at any time before the expiration of the said period
mentioned in article 1 (c) hereof as the Bank shall, in its
discretion, think fit.

(ii) That in the event of a breach of any of the above conditions the
above written Bond shall remain in full force and effect and the
same total amount of scholarship shall be forthwith payable to the
Bank, or such other Foundation/or Trust/Waqf/Society, to which
the Bank may assign its rights in equivalent ______________
(name of local currency), at the rates of exchange prevailing at
the dates of payment, in respect of such breach by way of
liquidated damages and not as a penalty by the Obliger and in
case of the Obliger failing to do so, by the sureties jointly or
severally.

2
SIGNED, SEALED AND DELIVERED
(by the Obliger to whom a scholarship has been awarded)
Signature : _________________________________________

Name in full : _________________________________________

Address : _________________________________________

Occupation : _________________________________________

In the presence of : _________________________________________

SIGNED, SEALED AND DELIVERED

(by the first surety)

Signature : _________________________________________

Name in full : _________________________________________

Address : _________________________________________

Occupation : _________________________________________

In the presence of : _________________________________________

SIGNED, SEALED AND DELIVERED

(by the second surety)

Signature : _________________________________________

Name in full : _________________________________________

Address : _________________________________________

Occupation : _________________________________________

In the presence of : _________________________________________

3
 SCHEDULE (1)

TERMS AND CONDITIONS OF THE SCHOLARSHIP

1- The Bank agrees to provide, and the student agrees to accept, on the
following terms and conditions, a scholarship to study
__________________ at the University of _______________________
(field of study)
in ___________________.
(country name)

2- Subject to the provisions of this Agreement, the Bank agrees to provide

the student during the terms of his/her scholarship with the following:

(a) A monthly scholarship of US$ _____ ( _____________________

only) which shall become payable either from the day when the
student presents himself/herself in
___________________________________________________
(place of study)
provided this is not more than 10 (ten) days before the
commencement of study, or from the date of approval whichever is
later.

(b) Clothing and books allowances for each academic year in an

amount equal to three months scholarship.

(c) Health Insurance in US$ _____ to cover medical treatment. If

Health Insurance is not available as part of the Social Security
System, the student shall be entitled to the cost of medical
treatment only if the treatment is done at the University Hospital
or a Government Hospital.

(d) An amount not exceeding US$ 40/- (US dollars Forty only), once
throughout the period of study, for the cost of a pair of spectacles
where the use of the same is recommended by the University or a
Government Hospital.

(e) For a student studying outside the country, one way air ticket to
the student's place of study to join the Programme and the same
to go home upon completion of the Programme.

In addition, a return air-ticket from the student’s place of study to

his home country once in the middle of the period of studies. The
tickets will be issued only to those who pass their end-of-the-year
examination and are promoted to the next level. The students are
required to plan the utilization of the return air-ticket to meet the
needs of their studies such as to do internship, training, etc. in
their home countries.

3- The student shall undertake:

 (i) to devote all his/her time to his/her studies and that he/she will not
undertake any work for remuneration;

(ii) not to leave the place of study, except for reasons other than
holidays or circumstances which are beyond his/her control,
without the approval of the authority in charge of the Scholarship
Programme in the Bank;

(iii) not to change his/her specialization without the approval of the

authority in charge of the Scholarship Programme in the Bank;

(iv) to behave, at all times, as a good Muslim and will not violate
Muslim principles or conduct himself/herself contrary to the basic
tenets of Islam;

(v) to send to the Bank, regularly, receipt of the stipends and other
allowances sent by the Bank every three months and the copies
of academic records of every academic term/semester;

(vi) to take active part in any Islamic orientation programme

suggested or provided by the Bank through educational material,
lectures, etc. in order to enhance his/her knowledge and
awareness of Islam and the affairs of the Muslims .

4- The Bank shall be at liberty to rescind this Agreement and cease

payment of the scholarship, if:

(a) the student commits a breach of any of the undertaking made

under clause 3 hereof.

(b) the student's academic performance is not satisfactory or if the

reports of his/her University show that he/she is incapable of
realizing the objectives of his/her education.

Note: The Bank will issue circulars for further details on the provisions
and undertakings mentioned under item 2, 3 and other points in
this Bond Agreement, as directed by the Executive Committee of
the Scholarship Programme.

5- Before the scholarship becomes effective, the student must enter into a
bond duly to comply with the undertakings herein and the terms and
conditions set out in the bond.

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