Assoc. Prof. Dr. Asyraf Wajdi Dusuki Head, Research Affairs International Shari’ahResearch Academy for Islamic Finance (ISRA) INCEIF CLASS FN 6013 ISLAMIC FINANCE TOPIC 3 2. Application of Hybrid Instruments in Islamic Finance 6 Shariah Parameters in Combination of Contracts 5 Concept of Wa ’a d 3 Application of Wa’ad 4 Hybrid Instruments 7 Issues Distinction between Wa’ad, Wa’daan & 2 Muwaadah Workshop on Islamic Banking Operation 8 Conclusion

1. Assoc. Prof. Dr. Asyraf Wajdi Dusuki
Head, Research Affairs
International Shari’ahResearch Academy for Islamic Finance (ISRA)
INCEIF CLASS
FN 6013 ISLAMIC FINANCE
TOPIC 3

2. Application of Hybrid Instruments in
Islamic Finance 6
Shariah Parameters in Combination
of Contracts 5
Concept of Wa ’a d
3 Application of Wa’ad
4 Hybrid Instruments
7 Issues
Distinction between Wa’ad, Wa’daan &
2 Muwaadah
Workshop
on Islamic
Banking
Operation
8 Conclusion

3. Concept of Wa'd
•Al-Fayumidefines Wa'd (عَذ )
linguistically as a promise whether
good or bad. Lexically, Wa'd is defined as notification of good or bad news.
•In al-Mawsu’ah al-FiqhiyahWa'd is defined as a notification of good news in the future, while a promise of bad news is called wa’id (عَيذ )

4. Cont’d
•Mukjamal-Mustalahatal-Fiqhiyahformulates Wa'das informing the action of one party towards another party that is due in the future.
•Muwaadah(م اُعذج ) is a bilateral promise that is agreed upon by both parties. If the promise is unilateral then it is called ‘idah(عذج ).
أن يعذ كم اَحذ صاحث ,ً فإن عَذ أحذ مٌا د نَ الأخش ف زٍي انعذج

5. Fulfillment of Promise (الىفاء بالىعد )
•Wa'd is allowed because a person can voluntarily promise a good deed in the future to another person.
•Ulama agree that the fulfillment of promise is required (مطه بُ ) religious-wise.
•However, is Wa'd binding and enforceable
from a legal point of view?

6. Is Promise Legally Binding and
enforceable ?

7. 7
Legal Status of Wa’d
•A promise without any intention of fulfilling it, is not permissible (haram)
–deemed to be a liar and pretentious (munafiq) person who are seriously condemned by the religion.
•If the same promisortakes an oathto convince the promissee
–will be subject to Allah’s condemnation
–a fine or compensation (kaffarah) to relieve him from his false oath.

8. 8
Legal Status of Wa’d (2)
•If a promise with an intention of fulfilling it, the jurists are divided whether its fulfillment is obligatoryor recommended.
•Those who opine the fulfilling a promise is obligatoryare further divided as to whether it is binding by religion(mulzim diyanatan) or enforceable by the court (mulzim qada-an).
•Islamic jurists have different views with regard to the liability imposed to the parties of the promise.

9. 9
Legal Status of Wa’d (3)
VIEW 1:
Fulfilling a promise is recommended(mandub), not obligatory; otherwise the promisorwill be condemned (makruh).
promise must be fulfilled for religious reason only and it is a question of morality
al-Zarqa’-a promise does not initially bind the person who makes it (promisor), and it does not give any right to the promissee.
The Shafi’i, Hanbaliand ZahiriSchools recommend the fulfillmentof a promise, even if it is subject to certain condition.

10. 10
Legal Status of Wa’d(4)
VIEW 2:
Fulfilling a promise is obligatory by religion; otherwise the promisoris deemed to be sinful. Its non-fulfimentwill not be enforcedby the court.
Hanafi, Shafi’i, Hanbali, and a few from Malikischools -a promise made by a person to the other is religiously binding (mulzimdiyanatan) but not a legal duty (mulzimqadha-an). This is because wa’dis part of a voluntarily contract (‘aqdtabarru’at). Therefore, the judge has no way of such enforcement, because the second party has nothing more than a moral right.
Imam Nawawi-when a person promises another something (provided it is not illegal) he should fulfillhis promise.
Al-Qarafi-promise is not binding at all

11. 11
Legal Status of Wa’d (5)
VIEW 3:
Fulfilling a promise is obligatory by religionand can be enforceableby the court
IbnAl-‘Arabi-The promise is absolutely binding & must be fulfilled by all means unless if its fulfillmentis impossible.
IbnShubramahmade the fulfillmentof promise as compulsory.
"أن كم عَذ تانتضاو لا يُحم حشاما, لَا يحَشو حلالا, يك نُ عَذا مهضما قضاء دَياوح"
(Meaning: every concluded promise which does not allow prohibited thing, and not prohibit permissible thing, is binding legally and religiously)
"ان عُذ كه لاصو يَقض ت عه ان اُعذ يَجثش"
(Meaning; all promises are binding, and the promisoris compellable in fulfilling it)

12. 12
Legal Status of Wa’d (6)
VIEW 4:
Where a promise is subject to certain conditions, its fulfillmentis obligatoryand enforceablealthough the promisseehas not actedupon the promise yet.
•HanafiSchool -distinguished between absolute promise and conditional promise.
•The latter is binding in contract of exchange to avoid gharar(unknown element) in the subject matter of promise.
•This rule is very similar to the concept of guarantee established by kafalahcontract.

13. 13
Legal Status of Wa’d (7)
VIEW 5:
Where a promise is subject to conditions, its fulfillmentis obligatoryand enforceableonly if the promisseehas indeed actedon the basis of the promise & incurred loss.
•IbnAl-‘Arabi-if the promise results in particular consequence, its fulfillmentis obligatory; but if it is a promise per se without any consequential effect, fulfilling it is not made obligatory.
•The enforceability of a binding promise judicially can be upheld if it entails to the performance of promiseein reliance to the promise. As such, fulfilling the promise is obligatory, or the promiseewill suffer loss or difficulties as a result of the non- fulfillment. This is a preferred opinion in the MalikiSchool which was expounded by Malik, IbnAl-Qasimand Sahnun.

14. 14
FULFILMENT OF
PROMISERecommended
Obligatory
1.The Shafi‟i School
2.Abu Hanifah
3.Some Maliki jurists
4.Al-Qarafi (Maliki)
1.Majority of Maliki jurists
•Ibn Al-„Arabi : absolutely
•Malik, Ibn Al-Qasim and Sahnun:
-obligatory, or the promisee will suffer loss or difficulties
2.Ibn Shubramah
إذا وعد أحدكن أخا وهي يًت أى يفي ولن يجئ للويعاد،
فلا شيء عليَ
يا أَيُّهَا الَّرييَ آهَ ىٌُا لِنَ تَقُىلُىىَ هَا لا تَفْعَلُىىَ
, كبُسَ هَقْتاً عِ دٌَْ الله أَىْ تَقُىلُىا ها لا تَفْعَلُىىَ
يُسِيدُ ٱللَّ بِڪُمُ ٱل يُۡس زَۡ وَلَا يُسِيدُ
وَهَا بجَِعَلَ ڪُم عَُل يٱ لۡ كُ نۡ ع فِ س ى ز
ٱَلدِّييِ هِي حَسَجٍ آية الو اٌفق ثلاث: إذا حدَّث كرب، وإذا وعد
أخلف، وإذا ائتوي خاى
A man asked the Prophet (S.A.W.), “Can I lie to my wife”. The Prophet said, “There is no good in lying.” The man said, “Shall I make her a promise and tell her?” The Prophet said, “It will not be held against youpromise (wa‟d) is like a gift (hibah) which is not binding on its promisor except after delivery has taken place

15. 15
Overview of Classical Juristic Opinions
•a promise per se (without any condition attached to it) is binding
–its non-fulfillment amounts to lying and non-obedience which is sinful to Allah.
–is binding by religion.
•If the promise is conditional upon fulfilling certain condition, the opinion of MalikiSchool is well-justified.
–If the non-fulfillment causes difficulty or loss to the promisor, then the promise become binding judicially and thus, is enforceable against the promisor.

16. 16
Overview of Contemporary Juristic Opinion
•Contemporary jurists have been posed with many issues in financial products which require them to exercise an ijtihadand produce a new ruling (ifta’) to such effect.

17. 17
IJTIHAD & IFTA’
ON WA’D
Sheikh Badr Al-Mutawalli Abdul Basit, Shari‟ah advisor of KFH
every unilateral promise that neither permit unlawful thing nor prohibit lawful thing is binding judicially and by religion (mulzim qada-an wa diyanatan
Sheikh Abdul Aziz bin Baz, Mufti of Saudi Arabia
promises to sell are permissible provided that the goods that have been pledged are owned by those who made the promise.
•Approved bilateral promise (muwa‟adah) provided that: bank owns the goods& put in possession, Bank sells goods to purchase orderer with an agreed profit, Bank must bear ownership risk until the goods are delivered, Bank must accept redelivery if there is hidden defect in the goods
•also resolved -unilateral promise becomes binding to the promisor -subject to the approval of Shari‟ah supervisory committee 2nd Conference of Islamic Banking in Kuwait (21- 23 March 1983)
Islamic Fiqh Academy in resolution no. 40-41
Fulfilling a promise is allowed subject to certain conditions as enumerated in the next slidesFirst Conference of Islamic Banking in Dubai (May 1979)
Fulfilling such promise may become judicially obligatory in the event of necessity, eg. if the non-fulfillment of promise entails difficulties or loss to the promisee.

18. 18
•a promise (wa’d) which is made unilaterally by the purchase orderer or the seller is morally binding on the promisor, unless there is a valid excuse.
•It becomes legally binding if:
–it is made conditionalupon the fulfillment of an obligation, and
–the promissee has already incurred expenseson the basis of such a promise.
Islamic Fiqh Academy Position on Promise

19. 19
•binding effectmeans such promise must be fulfilled,
–otherwise a compensation must be paid for damages caused due to the unjustifiable non-fulfilling of the promise.
•Mutual promise (muwa’adah) is also permissible provided that the optionis given to one or both parties.
–Otherwise, it is not permissible, since mutual and binding promise is like a sale contract which requires the seller to be in full possession of the goods to be sold.
Islamic Fiqh Academy Position on Promise (2)

20. What‟s the
difference
between Wa‟ad,
Wa‟adan and
Muwa`adah?

21. 21
Concept of Wa’d
•wa’d= a unilateral promise given by one party to another to perform an obligation. E.g.
–a customer’s promise to buy the leased asset upon expiry of the leasing (ijarah) period in the al-ijarahthummaal-bay’ (Islamic hire-purchase) transaction.
–Other usage of unilateral promise in the form of sale or purchase undertaking can also be found in mushrakahmutanaqisah(diminishing partnership), murabahahsale to purchase ordererand sukukstructures.

22. 22
Concept of Wa’daan
•Wa’dan= 2 unilateral promises given by 2 different parties which are independents from each other and subject to different independent conditions. E.g.
–in certain Islamic-structured product, a customer promises to sell securities to a bank for an agreed settlement price with certain conditions.
–At the same time, the bank also undertakes to buy the securities for certain price with another different conditions.

23. 23
Concept of Wa’d
•Muwa’adah= bilateral promises that can be conditional or unconditional with or without consideration.
–Unconditional bilateral promise occurs when one party undertakes to sell an asset during a particular time, while the other party undertakes to buy it during the same time.
–Conditional bilateral promises happen when one party promises to sell an asset and another party promises to buy the same asset if certain condition X occurs.

24. Application of Wa’din Modern Transactions
Wa’d as a Sign of Commitment
Wa’d & Options
Wa’d in Event of Default
& Total Loss
Wa’d & Liquidity Facility
Wa’d & Exit Mechanism
Wa’d in Hedging and Risk Management

25. Wa’d as a Sign of Commitment
•This form of wa’d isto show parties’ commitment to complete the transaction according to their ultimate intention.
•This form of promise is used to formulate the basic structures of murabahah, musawamah, salam and istisna’ in today’s financial transactions.

26. How to ensure the fulfillment of Wa’d?
Hamish Jiddiyahis a security deposit in case the customer does not fulfill his promise, i.e. cancel the purchase, the deposit will serve as a remedy to any loss suffered by the bank.
Hamish Jiddiyah

27. How different is Hamish Jiddiyah form downpayment (urbun)?
request from the purchaser to make sure that the orderer is serious in his demand for the asset.
Urbunis a down payment that is non-refundable and is constitutes as an initial installment payed in the beginning of signing the contract
Hamish Jiddiyaha payment made before the signing of the contract in case the customer does not complete the transaction the amount of hamish jiddiyah is going to be deducted by the amount of loss suffered by the bank
otherwise it is refundable
Both are defined as the amount paid by the orderer of the purchase upon a

28. Wa’din Event of Default & Total Loss
•Binding wa’d has been applied to mitigate the risk faced by the bank and investors from events of default or total loss.
•In sukuk, it is applied through a Purchase Undertaking (Islamic put option).
Ex.: Dubai Islamic Bank (as co-owner) will undertake to purchase SPV’s share in the co-ownership assets at maturity or in case of event of default or change in circumstances at a pre-agreed
exercise price.

29. Wa’dNon-Fulfillment
•The opinion of the Fiqh academy states that in case a promising party (wa’id) does not undertake his promise, the counterpart (mustafid) can not force him to fulfill his promise but has the right to ask for compensations over the actual losses (sharar fi’liy) incurred in the court of law.
إرا تخهف أحذ طشف انم اُعذج عما عَذ ت ,ً فإو يجثش قضاء عه إوجاص انعقذ أ تحمم انضشس انفعه انز نحق انطشف الأخش تسثة تخهف عه عَذي
•Prof. Hussin Hamadstates that the promisor can not be forced to fulfill his promise, but the counterparty can ask for the appropriate compensation based on occurred losses.

30. How Can Compensation be determined in case of Wa’d non-fulfillment?

31. AAOIFI standards on the issue ofCompensation:
1.Financial institutions have the right over the hamish Jiddiyah in case of wa’dnon-fulfillment
2.The amount of compensation is based on the detriment (dharar) and actual losses (dharar fi’liy) that resulted from the wa’idaction, and not the opportunity lost.
3.As for Ijarah (leasing), the amount of actual loss can be determined by the difference between the cost of leased asset and the total amount of lease if tt was leased to another, or the selling price if the leased object was sold to another

33. Hybrid contracts orCombination of contractsis a process that takes place between two parties or more; and entails the simultaneous conclusion of more than one contract.
What is Hybrid Contract?
)الجمع بين العقود(

34. Forms of Combination ofContracts
Without imposing any of them as a condition in the
other, and without prior agreement (muata‟ah) to do so.
Subject to prior agreement but without imposing any of
them as condition in the others.
Agreement to conclude the deal through any of the
different contractual forms decided in the future.
Imposing some of them as conditions in the others,
without prior agreement (muata‟ah) to do so.

35. Forms of Combining Contracts
Ex. Selling a house to the other for RM1000 and at the same time renting a car to the
same party for RM100 per month
Stipulated as conditions in the other contract
Ex. One party tells the other party I will sell you my house for RM10000 on
condition that you undertake to rent it to me for a RM1000 per year for
two years
Having single lump sum counter value ( (عىض
Ex. Selling a piece of land to the other and at the same time renting a
car to the same party for a specifies period both against RM1000
Exhaustive contractual statement comprising a number of
successive parts and stages to realize the desire of both
parties to conclude the deal in question
Ex. Ijarah muntahiah bitamlik, diminishing musharakah, etc
Concluded for separate values

36. Islamic Project Finance Through Syndicated Financing

37. • It refers to the participation of a group of institutions in a joint financing
operation through one of the Shariah-permitted modes of financing.
• The accounts of the syndicated financing operation are kept independent
from the accounts of participating institutions.
• The main reasons for syndicated financing is to share the risk exposures
amongst the participating financial institutions, which may otherwise not
plausible to be assumed individually due to large exposure limitation
imposed by regulator.
What is Syndicated Financing?

38. Shariah Parameters on Syndicated
Financing
Shariah Compliant
Investment
Activities
Shariah Compliant
Financing
Structure

39. Can Conventional
institutions involve in
Islamic Syndicated
Financing?
YES!
• As long as subscription and
utilization of funds are arranged
according to Shariah-compliant
forms

40. Can Conventional institution become the lead arranger?
YES!
•Only if the contracts, project financed and the modes of financing are all Shariah- compliant

41. Can IFIs partake to finance a project which is also partially financed via conventional modes?
YES!
With a condition that the accounts and lead manager arrangements of the two types of financing are kept separate. It is well known that usurious lending and borrowing is a Shariah-banned practice and the responsibility thereof falls right on the party who commits it.

42. Mudarabah Structure of Syndicated
Financing
Syndication Manager
(Mudarib)
Participating Banks
(Rabbul Maal)
Project to be
Financed
Provides
Financing
Invest in the
Development
Share
Profits

43. In Essence MudaribCannot Guarantee Capital Nor Return Unless Negligence or Misconduct!
How to Protect the Interest of Investors (RabbulMaal)? Feasibility Study or Business Plan( دساسح انجذ ) as a form of Accountability!

44. What is Feasibility Study or Business Plan ( ىودجلا ةسارد) ?
•Feasibility studiesaim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest term, the two criteria to judge feasibility are cost required and value to be attained.
•As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations.
•Generally, feasibility studies precede technical development and project implementation.

45. Business Plan Makes MudaribAccountable
•If say under Business Plan, the Mudaribprojects the return to be 12% per annum, if there is a shortfall of 2%, then the Mudaribneed to compensate for the shortfall which he had earlier promised under the Business Plan.
•This is the opinion of Sheikh Hussain Hamid Hassan based on legal maxim:
أن انتغشيش تانق لُ كانتغشيش تانفعم ي جُة انضمان
“that deception by words entails compensation/indemnification in the same way as deceiving by acts requires”
•For example, if someone digs a well or a hole on a thoroughfare and covers it with some paper or palm leaves, then he will be responsible for loss or damage caused to property or life of any one due to his act. It means that he shall be responsible both under criminal and civil laws. The same rule applies to a party who has presented a feasibility study to lure a financial institution into extending financing to him on the basis of his study should he fail to achieve the estimated returns and the promised results

46. Burden of Proof is on Manager of Funds
•Producing evidence is the duty of the party which lodges a claim while the party denying the claim is required to take oath that his stand is correct (انثيىح عه انمذّعي اَنيميه عه مه أوكش ). Jurists unanimously hold that Al Muddai(the Claimant) refers to a person who claims occurrence of an event which is not common or the norm.
•When applied in case of a Fund Manager who claims loss or destruction of the Investment assets, it means that such a claim shall not be acceptable unless he produces evidence that the assets have been destroyed totally or partially or a loss has been incurred; and that the above loss or damage or defect is not due to his default, negligence, misconduct or breach.
•In other words, he should prove that the loss has happened for reasons or circumstances beyond his capability to foresee or power to rectify.
•The reason for the above position is that the Investment Manager will be considered to be claiming what is uncommon and abnormal.
•It is quite common and normal that an asset/fund taken by someone for the purpose of investment remains intact or grows. Therefore the claim that it has been destroyed or incurred a loss needs to be substantiated by evidence.

47. Musharakah Structure of Syndicated Financing
Joint Committee
Form Musharakah
Partners
Project to be
Financed
Profit
Loss
Select Joint
Committee
Finance the
Development
Shared according to
predetermined ratio
Shared according to
capital contributed

48. Wakalah Structure of Syndicated Financing
Paid/Non-Paid Agent
Form Musharakah
Partners
Project to be
Financed
Profit
Loss
Appoint
Agent
Invest on
behalf banks
Shared according to
predetermined ratio
Shared according to
capital contributed
Pay remuneration

49. Case Studies on Islamic Shipping Finance

50. Case Studies on Istisna’
•This is an Istisna’ arrangement in relation to construction of vessel for Brunei Gas Carrier Sdn. Bhd.
•The structure involves BGC SPV as the owner and user of the gas tanker but the ownership is split between beneficial (Orphan SPV) and legal (BGC SPV) to justify the repayment of cost + profit.
•Essentially, the structure was designed to ensure effective repayment mechanism to the participants (financial institutions).

51. What is Orphan SPV?
•Orphan company -A company which has no identifiable shareholder/ owners -e.g., an SPVowned by a charitable trust. If the trust is a public charitable trust, there is no identifiable beneficial owner of the SPV.
•In most UK securitisations, the SPV is structured as "an orphan subsidiary" with the shareholding transferred to a charitable trust. Therefore, even though there is no direct control of the originator on the SPV, it is a matter of common knowledge that the SPV is a figment of the originator. The originator does maintain operational control over the SPV.
•This ownership structure of the SPV is devised to avoid consolidation, both from bankruptcy as well as accounting viewpoint.
•To avoid consolidation from legal and accounting viewpoint, the originator must hold no equity interest, and no residual interest in the SPV. Therefore, very convoluted methods are followed in UK practice for extraction of the originator's profit from the transaction. These include: deferred consideration, an intermediary trust holding legal interest on behalf of both the originator and the issuing SPV, interest swap, retained interest, management fee, brokerage, etc.

52. Ship Builder
Seller/Lessee
ORPHAN SPV
(Mudarib/Purchaser
/ Lessor
Forward Lease
Agreement
Istisna’ Agreement
Mudarabah
Agreement
(1) Lessor is the beneficial owner of the vessel
and the lessee is the registered owner and
operator of the vessel
(2) Lessor will lease its beneficial interest in
the vessel
(1) Purchaser and the Seller agree that the
Seller will build the Vessel
(2) Purchaser agrees to pay the Istisna‟ cost as
the price for the Seller per forming the works
(3) Seller agrees to sell by way of Istisna‟ to
Purchaser its beneficial interest in the constructed
Vessel and Purchaser agrees to purchase the
constructed vessel for the Istisna; cost. Financiers
(Rabbul-
Engage in
construction
Hybrid Structure of Syndicated Financing

53. Case Study onMurabahahShipping Facility toHay DenizcilikTicaret(Turkish-based Shipping Company)

54. Case Studies on Murabahah
•This is an USD18 million MurabahahShipping Facility granted by Amsterdam-based GarantiBank International (GBI) to Turkish-based Shipping Company, Hay DenizcilikTicaret(HDT).
•The structure involves GBI as the financier and seller of the vessel. While HDT is the GBI’s client to purchase the vessel.
•Essentially, the structure was designed to based on the principle of Murabahahto the Purchase Orderer(MurabahahLil AmriBi Shirak)

55. Purchaser
(HDT)
Agent
Vendor
Vessel Purchase
Agreement
Murabahah
Agency
Agreement
Murabahah
Agreement
Pay on
deferred
sale
terms
Pay
at
cost
price
Murabahah
Arrangement
to Purchase
Vessel
Vessel Purchase
Confirmation
(a) Identification
Notice
(b) Pay Deposit

56. What is the Shari`ah Status on Combining Contracts?

57. Shariah Status
•It is permissiblein Shariahto combine more than one contract in one set, without imposing one contract as a condition in the other, and provided that each contract is permissible on its own.
•Freedom ofcontracting & honoring commitmentsis acknowledged in principle by the general teachings and directives of Shariah– unless such contracts and commitment lead to violation of rulings.

58. Cont’d
•Ibn Qayyimstates “it is permissible in principle to form up contracts and conditions, except for what has been prohibited by Shariah”
”و الأصل فى العقود و الشروط الصحة الا ما أبطله الشارع
أو نهى عنه”
•Combining contracts in this manner is acceptable unless it encounters a Shariah restriction that entails its prohibition on exceptional basis.

59. Permissibility of
Contract Combining
1stOpinion
Majority of Hanafis, Shafi`is, & Hambalis
The set of combined contracts can be judged in the light of its individual components.
Hence, if the transaction comprises a number of contracts that individually satisfies the permissibility requirements, the combined contract is permissible.
2ndOpinion
Some Hambali and Shafi’is Fuqaha
Permissibility of combining two contracts for the same contract value, even if the two contracts differ with regard to Shariah Status and rulings.
Indicates permissibility of combining two contract having separate values
)عقذيه تع ضُيه مختهفيه(
3rdOpinion
Ibnu Taimiah

60. Exceptions
•Al-Shatibiindicates prohibition of combining contracts in specific cases on exceptional basis.
Combining could generate Shariah restrictions that do not hold true when the combined acts are taken up individually.
•Ex.: combining sale & lending, marrying two
sisters, or marrying a woman and her aunt.

61. Does not
include cases
banned by
Shariah
61
Not used as a
trick to
circumvent for
riba
Not used as an
excuse for
practicing riba
Not contradicting
with underlying
rulings &
ultimate goal
Shariah Parameters/Controls on Contract Combining