Common use of Applicable for financing of unencumbered property with title Clause in Contracts

Applicable for financing of unencumbered property with title. (A) The Customer is legally and beneficially entitled to the unencumbered Property (as defined herein) for which separate document of title has been issued and there is no outstanding amount payable for the Property. (B) The Customer has applied to the Bank for the Facility (as defined herein) whereby the Bank is requested to enter into a Diminishing Musharakah arrangement with the Customer in the following manner and subject to the terms and conditions of this Agreement: (i) The Customer has requested the Bank to purchase part of an undivided portion of the Customer’s beneficial ownership in the Property, for which the Bank will pay the Facility Amount (as defined herein) to the Customer as the Bank’s capital contribution in the Musharakah. The Bank has, according to its financing procedure, approved the Customer’s application and offered to purchase part of the Customer’s undivided portion of beneficial ownership in the Property by way of a Sale Contract attached to the Letter of Offer (as defined herein); (ii) The Customer’s capital contribution in the Musharakah shall be represented by the value of the Customer’s remaining undivided portion of beneficial ownership in the Property in the same proportion as the Customer’s share of the Initial Capital Contribution Ratio; (iii) Thereafter: (a) the Customer undertakes to lease the Bank’s undivided portion of beneficial ownership in the Property based on the Shariah principle of Ijarah by paying the Lease Rentals (as defined herein) and purchase the Bank’s undivided portion of beneficial ownership in the Property progressively by paying the Purchase Price (as defined herein); and (b) the Bank shall periodically transfer a proportion of its undivided portion of beneficial ownership in the Property, commensurate with the Customer’s progressive payment of the Purchase Price based on the Shariah principle of Diminishing Musharakah. (C) The Bank has approved the said application subject to the terms and conditions contained herein.

Applicable for financing of unencumbered property with title. (A) The Customer is and/or the Settlor are legally and beneficially entitled to the unencumbered Property (as defined herein) for which separate document of title has been issued and there is no outstanding amount payable for the Property. (B) The Customer has applied to the Bank for the Facility (as defined herein) whereby the Bank is requested to enter into a Diminishing Musharakah arrangement with the Customer in the following manner and subject to the terms and conditions of this Agreement: (i) Firstly, the Settlor shall appoint the Customer as trustee of the Settlor’s undivided portion of beneficial ownership in the Property pursuant to the Deed of Trust (as defined herein) for the purpose of facilitating the Diminishing Musharakah arrangement between the Customer and the Bank; (ii) The Customer (in its personal capacity and/or as trustee under the Deed of Trust) has requested the Bank to purchase part of an the Customer’s undivided portion of the Customer’s beneficial ownership in the Property, for which the Bank will pay the Facility Amount (as defined herein) to the Customer as the Bank’s capital contribution in the Musharakah. The Bank has, according to its financing procedure, approved the Customer’s application and offered to purchase part of the Customer’s undivided portion of beneficial ownership in the Property by way of a Sale Contract attached to the Letter of Offer (as defined herein); (iiiii) The Customer’s capital contribution in the Musharakah shall be represented by the value of the Customer’s remaining undivided portion of beneficial ownership in the Property in the same proportion as the Customer’s share of the Initial Capital Contribution Ratio; (iiiiv) Thereafter: (a) the Customer undertakes to lease the Bank’s undivided portion of beneficial ownership in the Property based on the Shariah principle of Ijarah by paying the Lease Rentals (as defined herein) and purchase the Bank’s undivided portion of beneficial ownership in the Property progressively by paying the Purchase Price (as defined herein); and (b) the Bank shall periodically transfer a proportion of its undivided portion of beneficial ownership in the Property, commensurate with the Customer’s progressive payment of the Purchase Price based on the Shariah principle of Diminishing Musharakah. (C) The Bank has approved the said application subject to the terms and conditions contained herein and to the Customer being appointed by the Settlor as trustee of the Settlor’s undivided portion of beneficial ownership in the Property pursuant to the Deed of Trust (as defined herein) for the purpose of facilitating the Diminishing Musharakah arrangement between the Customer and the Bank. 1 Definitions and Interpretations