National Shari'a Board - Indonesian Council of Ulama Fatwa No. 45 of 2005 on Line Facility

This fatwa defines a 'line facility' as a rolling financial ceiling for a fixed term executed in accordance with shari'a principles. It permits a line facility to be executed based on an agreement between a shari'a financial institute and a customer (wa'd) for certain financial instruments (murabahah, istishna', mudharabah, musyarakah and ijarah) in accordance with shari'a principles. The shari'a financial institute's fee or profit may only stem from the yield of the line facility itself.

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