Sharia and legal evaluation of the lease-to-own contract as carried out by subsidiaries of conventional banks in Jordan

Abstract

This study aimed to clarify the legal ruling of the lease contract ending by representation as carried out by the companies affiliated with the traditional banks. The study touched on the statement of the legal evaluation of the lease-to-own formula, and then to stand on the reality of the financial lease contract, and then the legislation and legal statement for the lease contract ended by representation and corporate law. The study included three sections, where the first topic dealt with: the companies affiliated with traditional banks that deal with Islamic financing formulas, and in the second section: the Shariah ruling for the lease contract ending with ownership, and the third topic dealt with: the legal and legal rulings for the financial lease contract conducted by companies affiliated with conventional banks.

The research concluded with a set of results, the most important of which is that it is not permissible for the subsidiaries to charge all maintenance expenses to the lessee, and it is not permissible to rent ending ownership with fixed and variable rent, and from a legal point of view, the affiliated company is not allowed to prevent the lessee from subletting the leased property, and the study recommended the companies that deal with Islamic financing formulas affiliated Conventional banks have the right to appoint a Sharia supervisory board to monitor contracts and the methods of their implementation, and to manage subsidiaries participating in scientific conferences, and to review international experiences and models in this field to extract the results of those applications and benefit from them.

Keywords: subsidiaries, lease financing, Sharia assessment, Bani Salman.