3.1 This Facility is a term and unsecured financing facility based upon the Shariah concept of Murabahah Tawarruq, Wakalah and Wa’d.

Tawarruq: Means an arrangement that involves two sale and purchase contracts. The first involves the sale of the commodity by the Bank to the Customer on deferred payment at cost plus profit basis whereby the purchase price and the sale price are disclosed to the Customer. Subsequently, the Customer will sell the same commodity to a third party on cash and spot basis.

Wa’d: Means a unilateral promise or undertaking which refers to an expression of commitment given by one party to another to perform certain actions in the future.

Murabahah: Is a sale and purchase of a commodity on deferred basis where the acquisition cost and the mark-up are disclosed to the Customer.

​​Wakalah: Refers to a contract in which a party as principal (muwakkil) authorises another party as agent (wakil) to perform a particular task in matters that may be delegated, with or without the imposition of a fee. In this product, you appoint the Bank as unrestricted agent to perform the Tawarruq arrangement.

​(a) For application under AmBank’s Payroll Customer Program, the Customer is required to enrol for Auto-Debit (Monthly Payment Authorisation) for monthly instalment payment from your AmBank Islamic’ s Payroll Savings / Currents Account. 

(b) The Customer irrevocably authorises and instructs the Bank, the case to debit from the Customer’s Account the monthly instalment as they are due including any applicable fees, profit and all other charges related to the Facility. This Authorisation also extends to any increase in profit rates (if any) and the Customer hereby confirms and agrees that, subject to the terms of the Facility, so long as the Monthly Instalments remains due, there no limits to the payments by amount and/or frequency pursuant to this Authorisation.

 

The direct debit shall be subject to the following terms and conditions:

(i) The Customer must make sure that sufficient funds are kept in the Customer’s Account to meet the instalment payment. If the Customer’s Account is a Current Account-i, the customer must also make sure sufficient funds in the Customer’s Account to honour the cheques deposited for payment after the instalment payments are debited from the Customer’s Account. The Customer acknowledges that the Bank will not be liable for defamation and/or for breach of contract and/or for any losses, damages, expenses, costs or charges whatsoever arising from remarks made on the returned cheque(s) by the Bank, as the case may be, and/or on the grounds that cheque(s) issued under the Customer’s Accounts was returned due to insufficient funds as a result of the Bank debiting the Customer’s Account pursuant to this authorization/instruction. The Bank may levy a charge on all standing instructions on the due dates, which charges may not be refunded even if the instruction cannot be carried out due to insufficient funds.

 (ii) Although the Bank will try to effect such monthly payment, the Bank will not be held liable if the Bank is unable to effect such monthly payment or to follow such instruction due to reasons which are not attributable to the Bank or which are beyond the Bank’s reasonable control or by virtue of any of the Bank’s operational and/or system errors or malfunction unless due to the Bank gross negligence or wilful default.

​12.1 The Facility period is the period determined by the Bank and agreed by the Customer and shall be reflected in the Notification Letter.

12.2 Application via AmOnline Channel – The option for Facility Tenure is at minimum 12 months to maximum 60 months only.