Author: chowdhury.munna

What are mortgage documents? A mortgage is a mode of creation of charges on the immovable assets for securing the investment facility. According to Section 58 (a) of the Transfer of Property Act-1882, “ a mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payments of money advanced by way of investment/loan, an existing or future debt or the performance of an engagement which may give rise to a pecuniary (financial) liability. The transferor is called a mortgagor, the transferee a mortgagee. The principal money and the interest of which payment is…

What is Bank Guarantee?A Contract of Guarantee is a contract to perform the promise or discharge of liability of a third person in case of his default. The person who gives the Guarantee is called the ‘surety’, the person in respect of whose default the guarantee is given is called the ‘principal debtor’ and the person to whom the guarantee is given is called the ‘creditor’. The contract of guarantee may be either written or oral”. Purposes: Contracts of Guarantee are usually entered into (a) to secure the performances of something (b) to secure the honesty & fidelity of someone…

Investment or credit in Islamic shariah means ‘to layout of money’ or fund provided for a legal purpose and for a certain period with a risk of profit or loss. In Islamic Banking Investment means utilization of fund or deployment of fund for a special legal purpose on profit/loss sharing basis for a certain period. Islami Bank as per shariah deals with goods & services, not money. Shariah law prohibits speculative trading that involves risk and uncertainity. Shariah also forbidden investing in haram businesses such as gambling, alcohol etc. Investment or credit in Islamic shariah and its various modes: Mudaraba: Mudaraba means partnership…