E1BINDEX 10/28/2009 13:23:43 Page 390
Money
American currency prior to Federal
Reserve System, 89, 90
borrowing, 16
and Bretton Woods Agreement, 6, 89,
96, 97
and commodity indexation rule.See
Commodity indexation
cyclical nature of fiat money economy,
102–104
debasement of, 88
Federal Reserve Board of the U.S.See
Federal Reserve
fiat (paper) money, 88, 89, 102–104,
201, 228, 230, 234, 252, 275
function of, 85–87, 147, 201, 228, 321,
377
history of, 87, 88
important principles in developing
Shari’aa-based finance model,
228–231
interest as cost of renting money, 7, 8,
54, 84–86, 147, 230, 376, 377
Islamic prohibition on lending money
and charging interest (usury).SeeRiba
making money versus earning money, 7,
84–86, 134, 147, 371, 373, 375
and return on investment, 86, 87, 129,
147, 201, 228
time value of, 101
Money laundering, 181, 335
Money management (mudaraba), 59, 354
Money manager (mudharib), 59
Money market funds, 348, 349
Moral standards, 136, 137.See alsoSocial
responsibility
Mortgage-backed securities (MBS), 3, 5,
196, 273, 274, 338, 340, 346, 359
Mortgage bankers, 5, 6
Mortgages
adjustable rate mortgage (ARM), 4
cost-plus model (murabaha), 54–56,
204–212, 222, 268
documentation, 268, 269, 274, 275
Guidance Residential Finance, 196
Home Mortgage Disclosure Act,
172–174
interest-only, 4mortgage bankers, 5, 6
negative amortization (amo), 4
stated income/no docs, 5, 6
subprime lending, 3, 5, 336, 337
Mufti, 71, 73, 75
Murabaha.SeeCost-plus model
(murabaha)
Murabaha lil aamiri bil Shira’aa, 208
Musharaka (joint venture) direct
investment/equity ownership or
partnership, 58, 59, 213, 215, 216,
230, 231
Musharaka mutnaqisah (diminishing part-
nership), 215–221, 262, 263, 268
Muslim Community of Singapore (MUIS),
360–363
Muslim puritans, 233, 234, 243, 272
Muslim Savings and Investments (MSI),
195, 196
Muslims, 18
Mutual funds, 366National banks, 155–159, 161–163, 173
Natural gas, 117–119
Nazr, 38
Negotiable order of withdrawal (NOW)
checking accounts, 174, 175, 349
Non-sufficient funds (NSF), 323, 331, 340,
342, 349, 374, 375Office of Foreign Assets Control (OFAC),
181, 311, 323, 335
Office of the Comptroller of the Currency
(OCC)
acceptance of cost-plus and lease-to-own
financing transactions, 240, 247, 255
and acquisition of Bank of Whittier,
288, 289, 291, 294–296
audit findings, notification of, 313
and bank charters, 288
bank examinations, 181, 182
creation of, 158
functions of, 162, 163
funding, 163
national banks, regulation of, 155, 161,
162, 181, 291
objectives, 163
request letter, sample, 182–187390 INDEX