SECURITY OF CONTRACT IN ISLAMIC FINANCE

1.0 .Transfer of Debt (Al Hiwalah)

Literally means transfer or change from one locality to another or from a person to another, or from a situation to another.

Legally, means a contract through which a debtor is released from a debt by another person who become responsible for it 

Hiwalah is similar to the sale of debt but is not sale, it also resemble kafalah and wakalah while Hiwalah is a unique contract which has its own distinct features and conditions

Three participants in Hiwalah contract are:

·         The principle debtor

·         The creditor and

·         The transferee   

Definition of Hiwala by the Malaysian Securities Commission Shariah Advisory Council is “debt assignment contract”. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) states that this is permitted in order to facilitate payments and recovery. It is a legitimate and independent contract made out of courtesy and is not a contract of sale. For an assignment of debt, Hiwala is the Shariah instrument. Literally it means “turn”, in Islamic law the transference of a debt from one person to another

However, similar conclusion reached by Fakihah Azahari (فاقاه الازهر), the assignment of debt is a situation where an outstanding balance facility is assigned to a third party who has agreed to continue with the payment of the monthly installment under the customer’s account from the date of the assignment of debt until the expiry of the facility tenor. A customer who opts to negotiate for settlement of his obligations in this way not only assigns his debts to a third party with the financial capacity to continue with the monthly payments but also releases himself from his financial obligations towards the financier. The third party is usually one with a close relationship with the customer such as from father to son or from a company to its director or shareholder. This third party would be in a position to take over the debt due to the proximity of the contractual duties, fiduciary duties or relationship. Since the accounts have been serviced for a few years, the third party would be taking over an account that has an outstanding facility reduced from the original facility. Where the facility is for purchase of an asset, the third party would be taking over a reduced debt and acquisition of asset at a price below the market price. These are factors that may persuade the third party to consider taking over the assigned debt.

STAY POSITIVE AND STAY ACTIVE DURING CORONAVIRUS CRISIS

With current global health crisis as a result of coronavirus, it seems to be seen like unusual time portraying difficult situations. But the best of human nature can rise to the challenge, we must know that whatever happened is act of Allah.

 Allah Said in Quran Surat Al-Baqarah, And We will surely test you with something of fear and hunger and a loss of wealth and lives and fruits, but give good tidings to the patient (155), Who, when disaster strikes them, say, "Indeed we belong to Allah, and indeed to Him we will return,156 Those are the ones upon whom are blessings from their Lord and mercy. And it is those who are the [rightly] guided 157. All these verses show that human being will survive and rise after all. Indeed, Covid19 has claimed a lot of lives and wealth many people lost their love ones, others lost their jobs and some lost their wealth but if  you look at the whole picture, certainly you will survive, rise and bounce back. Always look other side of the situation surely you will be thankful to Allah.

Crises will strengthen our connections

With lockdown  due to Covid-19, bringing families to stay at home, eat, enjoy, laugh together, hug the kids or partner, look at them in the eyes, have long conversations with them  all of these gestures promote closeness and also increase your oxytocin, which is a hormone that bonds people and also has a calming effect on your body. When your oxytocin levels spike, they tell your body to switch off cortisol, the stress hormone during this difficult moment. as we go thru our busy lives, we never thought about strengthening the connections between families, and become so hard that families even see each other. For example, Fathers may spend couple of days without seeing their kids, due to work, and different sleeping time. However, with Corona situation family staying to together through the period enjoying home cook food. How beautiful it is.

Kindness, sympathy and respect to others

In Quran verse (29:65), and now, if they embark on a boat, they call on Allah, making their devotion sincerely and exclusively….). It’s a human nature to go back to Allah  during the crises, we have seen the mosques, churches, temples and  everyone praying with devotion and purity,  it is the nature of human being to look for the good in each other’s while we are hoping for solution that simply because during the crises our ego will disappear as human being and  go back to our natural form without any ego as result of crises. Covid-19 brings out both the worst and the best in human nature. The worst part is that everyone trying to stock maximum for themselves as you may notice from recent news, the fight over toilet paper, we are emptying the selves to have enough for ourselves without consideration to others because panic situation. However, in the crises you will learn the best of human nature with ego free, people donating whatever they can to scientists, hospital or other entities. You will see medical Doctors and hospital staff are working overtime to help sick patients. Neighborhoods are putting together care packages for people who are sleeping rough. People are sending, posting and sharing positive messages on social media. Friends from across the globe reaching out to each other in In order to show sympathy and offer some comfort to their fellow brothers and sisters. When we tune into these positive and pro-social aspects of the crisis, we are seeing unity.

By highlighting these few points, you can potentially change your understanding about the situation and build up your energy stores to help you cope with the other aspects of your day that have been made more difficult.

Conakry

Introduction

Officially known as Conakry located on the west cost of Guinea along the Atlantic Ocean. It lies between Latitudes 9°30 and 9°70 North and longitudes 13°700 and 13°400 west (ADB, 2003). It is a peninsula that stretches from the Northeast to the southwest over a distance of 36Km. The Conakry of contemporary time is lined with geometric arterial streets that have tall and thick mango trees that submerge the city with their green foliage with its cornich facing Oceans. Conakry is bordered by two cities namely Koyah and Dobirika. The population in my hometown is about 1.5 million approximately.  Conakry is known for sandy beach and forested interior. Conakry tropical climate is characterized by two seasons: a dry season, which commences from October to May, and a wet season that begins in June and culminates in September. The microclimate, due to the influence of oceans monsoon winds and sea breeze, is responsible for an abundant rainfall. Air humidity in Conakry ranges from 69% to 80%. The average annual minimum temperature is (23°C) with very low thermal amplitude. The maximum is around 29°C. Conakry is divided into five urban districts namely Kaloum, Dixinm, Matoto and Ratoma.