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Restricted Guaranty

A guaranty that is restricted by al-wasf or description. As such, guaranty is classified as current guaranty and deferred guaranty.…

Physical Guaranty

A type of guaranty that involves securing a person’s physical presence at a specified place and time. It is established…

Kafalat Al-Dayn

A type of guaranty (kafalah) that involves the credit enhancement of a liability. According to the Hanbali and Shafi’e schools…

Dhamanah

A type of guaranty which is particularly used in guaranteeing debts. Dhamanah comes usually in the form of collateral whereby…

Credit Guaranty

A contract of guaranty which is used to secure debts, retaliatory financial obligations (qisas), or other obligations, in the presence…

Conditional Guaranty

A contract of guaranty in which some party becomes a guarantor (kafeel or dhamen) if certain conditions are met. In…

Commercial Guaranty

A contract of guaranty which is used to secure commercial transactions. In Islamic jurisprudence, there is a host of shari’a-compatible…

Letter of Credit

A modern application of guaranties that constitutes a guaranty issued by a bank on behalf of a local merchant, securing…

Kafalah bil Mal

A type of guaranty (suretyship) that involves securing debts (duyun) and financial obligations (iltizamat maliyah). Kafalah bil mal can be...

Kafalah

A contract of guarantee/ suretyship which is used to provide assurance as to performance or liabilities. In other words, kafalah...