MURABAHA (SALE) CONTRACT

The following terms and conditions govern this Murabaha Transaction as follows:

The Customer acknowledges that the Bank has acquired the asset from the Vendor as specified in the Murabaha Application Form.
The Customer hereby agrees to purchase the asset from the Bank on an instalment payment basis. The sale price shall include the cost price of the asset and the Bank’s profit/mark-up. The Customer shall pay for the asset on a monthly instalment basis (“Transaction”).
The Bank hereby sells and transfers full ownership and rights in the asset to the Customer.
The Customer hereby authorizes the Bank to debit the Customer’s account with the Bank as stated in the Murabaha Application Form, for the purpose of repayment and/or any other cost related to this Transaction.
The Customer acknowledges and agrees that throughout the tenure of the Transaction, the Bank will reserve its right and power of lien on the asset at any time.
The Customer acknowledges that the Bank has a right of lien and repossession over the asset. Upon default in any monthly payment, the Bank shall be entitled immediately to repossess the asset from the Customer and the Customer is obligated to surrender the asset to the Bank. The Bank shall be entitled to sell the asset after repossession and sell same to recover proceeds. Proceeds of sale shall be used to liquidate any outstanding amount owed to the Bank as well as to cover expenses of the incidents of sale. Any remaining balance of the proceeds may be returned to the Customer.
The Customer hereby undertakes to pay a Penalty Fee of 1% flat per month on any obligation which remains unpaid after 30 days. The Bank shall have the right to debit the Customer’s account without recourse to the Customer. The penalty fee shall be utilized for Charity purposes as advised by the Bank’s Advisory Council of Experts. If the Customer’s account is not funded, the Penalty Fee shall form part of the outstanding amounts payable by the Customer to the Bank.
The Customer agrees to execute any document and provide any such security(ies) as may be required by the Bank.
The Customer hereby indemnifies and hold harmless the Bank, its officers, representatives and Directors against any and all liability arising from the use of the Asset.
The Customer hereby pledges the asset as security for repayment of all amounts due under the transaction. Hence, the Customer agrees that the Bank shall have the right and authority to exercise and enjoy unhindered access to the asset during the term of the transaction.
The Customer agrees to comply with and be committed to these terms and conditions.
The Customer agrees that this transaction as well as the terms and conditions shall be governed by the principles of Islamic Commercial Jurisprudence and all applicable laws and regulations in force from time to time in the Federal Republic of Nigeria.