Contemporary Primary Sources :: Fatwās - Contemporary :: 8 Muḥarram 1426 / 17 February 2005
National Shari'a Board - Indonesian Council of Ulama Fatwa No. 47 of 2005 on Settlement of Murabahah Arrears for Impecunious Customers
Dewan Syari'ah Nasional MUI, Posted by Daniel Peterson, 04 March 2016
This fatwa permits shari'a financial institutes to conduct settlement of murabahah transactions for their customers who are unable to fulfil their financial obligations therein within the agreed upon time, provided that:
- the customer sells the object of the murabahah transaction or other guarantee through the shari'a financial institute at an agreed upon market rate;
- the customer uses the proceeds of the sale to fulfil its existing financial obligations to the shari'a financial institute;
- if the proceeds of the sale exceed the debt remainder, the shari'a financial institute returns the excess funds to the customer;
- if the proceeds do not cover the debt in its entirety, the debt remainder remains that of the customer; and
- if the customer is unable to pay the debt remainder, the shari'a financial institute may release the customer from any existing financial obligation.