SS 39 – Mortgage and its Contemporary Applications

This standard aims to indicate Shari’ah rulings on mortgage and its contemporary applications in Islamic financial institutions (Institution/ Institutions).

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers mortgages requested by the Institution with the aim of documenting the debts and commitments owed to it by other individuals and Institutions. It is also covers the mortgages presented by the Institution to other parties in order to document the debts and commitments it owes to them. Furthermore, the standard covers the mortgages which the Institution, in its capacity as a notary or agent, keeps for the benefit of other parties. 2. Definition of Mortgage To mortgage means to make a financial asset or so tied to a debt so that the asset or its value is used for repayment of the debt in case of default.