The guarantee for payment of customer’s outstanding liability to IFI for purchase of assets or goods under Murabahah contract shall not take effect until the actual Murabahah contract is duly executed.
Upon default or declaration by the court that the customer is insolvent or bankrupt, all outstanding amounts due from a Murabahah contract is claimable from the guarantee, collateral or other securities to settle the debt.
bankruptcy of purchase orderer
106. The IFI, as a financier, may impose on the purchase orderer an amount of money as security deposit (hamish jiddiyyah) to compensate against losses incurred in the event that the purchase orderer breaches the promise or Wad.
Requirement for placement of security deposit by purchase orderer
107. The security deposit to compensate against losses incurred due to purchase orderer’s breach of promise, shall be returned to the purchase orderer fully or partially, depending on its utilisation.
Unutilized security deposit