The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

(Tina Meador) #1

  1. John Noonan,The Scholastic Analysis of Usury(Cambridge: Harvard Univer-
    sity Press, 1957), p. 377.

  2. St. Thomas Aquinas,Summa TheologicaII–II, 78, article two, ad 1, emphasis
    added.

  3. John Finnis,Aquinas(Oxford: Oxford University Press, 1998), 210.

  4. Professor John Goldingay, Fuller Seminary, Pasadena, CA.

  5. Published by permission of Professor John Goldingay, Fuller Seminary.

  6. Based on the Islamic (Judeo-Christian-Islamic) Law, it is preferred that the in-
    debted work for a defined wage, then use the wage to pay the debt. This way
    the indebted person would be treated fairly and equitably by marking the wage
    to the market prevailing rates charged in similar situations.

  7. French Protestant theologian who lived from July 10, 1509 to May 27, 1564.

  8. The Ansar Group started a similar effort in Canada, the Islamic Housing Coop-
    erative; however, its growth was limited because of the lack of liquidity.

  9. This was reported by Bukhari, Muslim, and others.

  10. In the saying of ‘‘... the seven most devastating Sins.’’ the Prophet Muham-
    mad (pp) counted: ‘‘believing in partnership with God, murder... and eating
    riba ...’’asreported by Bukhari, Muslim, and others, [al Targhib wa al Tar-
    hib, V 3, p 1].

  11. The Prophet Muhammad (pp) said: ‘‘Four [persons] very truly God will not
    make them enter Heaven... and the eater of riba... ’’ as Al Hakim reported
    [Al Targhib wa al Tarhib, v 3, p 5].

  12. The Prophet Muhammad (pp) said that God put wrath on (cursed) the eater of
    riba and its payer, and those who witness and transcribe the contract involving
    riba; this was reported by Bukhari and Muslim.

  13. From the Farewell Speech Ceremony of Prophet Muhammad (pp) before he
    died: ‘‘Vo, everything of the affair of jahiliyyah (paganism and ignorance) is let
    fall under my feet, the riba of jahiliyyah is let fall, and the first riba I abolish is
    the riba of al Abbas son of Abd al Muttalib, it is discarded, all’’ (principal and
    increase); reported and authenticated by Muslim.

  14. The Hadeeth (sayings of Prophet Muhammad pp.), narrated by Abu Dawood
    and Tirmidhzi, reads:
    ... and every Riba of Jahiliyyah is abolished. Neither shall you make [the
    debtor] suffer injustice [loss], nor shall you be made to suffer injustice, But the
    Riba of al Abbas son of Abd al Muttalib [the uncle of Prophet Muhammad (pp),
    who was active in Riba transactions before he became Muslim], it is discarded, all.

  15. Fiqh Al Sunnah, Al Sayed Sabiq in Arabic – Volume III Sections 12, 13, and 14,
    page 79; Daar Al Kitaab Al Araby, Beirut, Lebanon—November 1971.

  16. Mahmoud Elgamal,Islamic Finance: Law, Economics and Practice(Cambridge
    University Press), p. 58. Professor Elgamal’s book details the conditions of sale
    and the types of deceptive practices that are major and minor. This book is a
    wonderful and very useful reference for those who are interested in the legal
    Shari’aa aspects of the prohibition of riba and gharar.

  17. Ibid.


46 THE ART OF ISLAMIC BANKING AND FINANCE

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