Al-Ijara
Al-Ijarah: A contract intended to grant ownership of a known legitimate benefit for a specified period in return for a known legitimate consideration. According to Article (557) of the Libyan Civil Code, it is defined as a contract by which the lessor undertakes to enable the lessee to benefit from a specific thing for a specified period in return for a known fee.
Al-Ijarah ending with ownership: A lease that includes a promise to transfer ownership of the leased property to the lessee at the end of the lease period or during it.
Rent: What the lessee is obligated to pay in exchange for the benefit he owns.
Benefit: The subject of the lease and what is meant by it or what corresponds to the price.
Tenant Client: Any natural person who has a current account with the bank and wishes to receive the benefit fee.
Promise: The desire of the client (tenant) to conclude a lease contract with the bank when the bank legally and correctly acquires the leased benefit.
Client Default: The client’s refusal to complete what the bank promised before signing the contract subject to the required product.
Client Default Data List: An electronic list or icon in which the names of the bank’s clients who have reneged on their commitments to the bank are recorded.
Termination: The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) defined termination as the lifting and removal of the contract by agreement of both parties.
Sections of Leasing:
Lease of assets: A contract intended to grant ownership of a known, legitimate benefit for a specified period in return for a known, legitimate consideration.
According to Libyan Civil Law, Article (557), it is defined as a contract whereby the lessor undertakes to enable the lessee to benefit from a specific thing for a specified period in return for a known fee.
Persons’ Leasing: A contract for the benefit (service or work) of a natural or legal person for a known fee, whether the benefit is specific or described in the account. Such as educational, health, consulting benefits, etc.
In banking reality, the bank purchases the right to use many benefits from their lessors such as schools, universities, hospitals, etc. for a specific cash value, then sells this right to those who wish to enter into parallel leasing contracts for a deferred fee or in installments with an appropriate profit margin.