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The Principles and Practices of Shariah in Islamic Finance - page 35 / 49





35 / 49

Liability for lost or damaged


Segregation of assets purchased by F


on asset owned by the customer

Ownership of Murabahah asset

Asset from specific market


  • 60.

    The liability for loss or damage of asset acquired for the purchase orderer while in the possession of IFI shall be borne by the IFI.

  • 61.

    Any asset purchased by the IFI for Murabahah financing to the customer shall be specified and differentiated from similar or other goods in the same shipment based on customary practice. This is to ensure effective delivery of specified goods.

  • 62.

    Murabahah to Purchase Orderer sale by the IFI to the customer is not valid if the IFI purchases an asset from the customer and subsequently sells the same asset to the customer. The contract is also not valid if the asset purchased by customer from supplier is subsequently purchased by the IFI and sold to the customer based on MPO.

  • 63.

    The IFI shall not sign the Murabahah contract with the purchase orderer prior to the purchase of assets or goods to be acquired.

  • 64.

    The IFI shall be deemed to have ownership right on the assets to be sold based on Murabahah upon receipt of documents attesting to the ownership transfer to the IFI which include, among others, shipment and storage certificates.

  • 65.

    The purchase orderer may request the IFI to purchase the assets intended for the Murabahah financing from a specific market place or a supplier. However, the IFI may decline this request for whatever reason deemed reasonable by the IFI.

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