IJARAH & IJARAH MUNTAHIA BITTAMLEEK: FINANCIAL and OPERATING LEASE

1. CONCEPT AND DEFINITIONS
1. 'Ijarah as an Economic Activity
2. Why do people acquire and rent assets?
3. Ijarah as a Mode of Finance
4. Types of 'Ijarah contracts used by banks
1. Operating Lease (الإحارة التشغيلينة) and Entitlement Lease (الإجارة التمليكية)

2. IJARAH MUNTAHIA BITTAMLEEK
1. SHARI`AH RULES
2. LEGITIMATE FORMS, WITH RESPECT TO TITLE TRANSFER FROM LESSEE TO LESSOR

3. PRACTICAL ISSUES OF 'IJARAH AS A MODE OF FINANCE
1. IJARAH AS A MODE OF FINANCE
2. APPLICATIONS OF IJARAH
1. Housing finance
2. Means of transport and heavy equipment
3. Ijarah and Wakala
4. Liabilities for Maintenance, Asset Loss, Total, Partial Damage and Insurance
5. Late Payment and Penalty
6. Events of Default, Termination and Residual Value
7. Insurance of the Assets
8. The Residual Value of the Leased Asset, as treated in "Ijarah Muntahia Bittamleek”
9. Ta'jeer Min al-Batin (Subleasing)
10.Assignment of Ijarah

4. FURTHER APPLICATIONS OF 'IJARAH CONTRACT
1. Ijarah (Lease) Contracts with Variable Rent
2. Ijarah (Lease) Contracts with Variable Rent
3. Ijarah of Mausouf fil thimmah (forward rent)

5. SECURITIZATION AND 'IJARAH SUKUK
1. Securitization
2. Asset-Based Ijarah Sukuk
3. Usufruct-Based Ijarah Sukuk
4. Ijarah Funds

6. DOCUMENTATION
1. Promise to Lease
2. Ijarah Contract
3. Asset Gift contract
4. Other Contracts
1. Ijarah of common share of an asset
2. Gift of a common share of an asset

7. PRACTICAL QUESTIONS
1. BANK’S PROMISE TO LEASE AN ASSET TO A CUSTOMER
2. CUSTOMER’S PROMISE TO LEASE AN ASSET FROM THE BANK
3. COMPENSATION IN CASES OF RENEGING ON PROMISE
4. BANK’S PURCHASE OF THE ASSET TO BE LEASED FROM THE CUSTOMER WHO PROMISED TO LEASE FROM THE BANK
5. IJARAH OF SPECIFIED ASSET
6. FORWARD IJARAH (IJARAH MAUSOUF FIL ZIMA)
1. Ways of acquiring the asset to be leased
1. Purchase
2. Istisna
3. Getting the customer’s support in such process

8. IJARAH CONTRACT
1. FORMAT (OFFER & ACCEPTANCE)
2. NATURE OF CONTRACT, BINDING OR NOT (اللزوم)
3. CONDITIONS
1. Freedom from defects
2. Attachment to the future
3. In case of delinquency
1. Right to increase the rent
2. Taking options
3. Right to nullify contract
4. Right to demand compensation

4. START OF CONTRACT, HANDING THE PROPERTY, AND IN WHOSE NAME IT SHOULD BE REGISTERED
5. DOWN PAYMENT (عربون)
6. PROPERTY TO BE LEASED
1. Specifications
2. Usage safeguards
3. Maintenance and insurance
4. Appointing the lessee as an agent to do the maintenance and insurance

7. RENT
1. Specification
2. Forms
3. When it becomes due and how it is settled
4. Variable rent and its benchmark
5. Division between cost and profit
6. Conceptualization of the down payment
7. Rent adjustment
8. Securities against rent payment (insurance, mortgage, Kafala, Hawala, pledge)
9. Fine for delinquency in rent payment, lawful?
10. Nullifying the rent contract before its expiry

8. TITLE TRANSFER
1. timing, especially when property is purchased from the lessee and leased back to him
2. Form in Ijarah contract and when effected
3. When it is not possible to implement