 In this module, we shall look at some of the Sharia issues in Ejara. We have looked at quite a number of applications of Ejara in Islamic capital market, in Islamic investment fund management industry, in Islamic retail banking. And we look at aircraft financing based on Ejara and we look into a very innovative structure based on service Ejara. In however, there are quite a number of general issues, Sharia related issues when we are dealing with Ejara as an Islamic mode of finance. There are certain rules which govern Lassor and Lassi. There are certain rules which are actually related with the leased asset. And there are rules governing rental, rules governing ownership and liability. So, whatever be the application of Ejara in the context of Islamic banking and finance, we must observe these rules, otherwise the use of Ejara in these context may be questionable. We actually in one of the previous modules, we referred to the rules governing Lassi and Lassor. And we said that for the Lassor and the Lassi, i.e. the transacting parties to a leased contract, it is not necessarily a requirement that they should be Sharia confined or they should be Muslim and we gave some example. So, it is possible for a bank to enter into an Islamic bank to enter into a lease agreement with a corporation which is predominantly owned by non-Muslims. And it is also possible for an Islamic bank to provide financing to a company which is Sharia compliant, although this is owned by a casino. What do I mean by that? You know there is a gambling betting company, it is the group level company, but it owns a shopping mall somewhere in Manchester. In that shopping mall, there are no Sharia repugnant activities and if that shopping mall is looking for financing from an Islamic bank, this should be permissible. The rules governing the leased assets, the leased assets actually should not be put into the Sharia repugnant use and that asset itself should be Sharia compliant as well and I gave an example. For example, if there is a machine which is exclusively used for draw in case of a lottery. Now, this is not permissible for an Islamic bank to buy that draw machine and lease it to this gambling company. So, this asset itself although this is just a machine, but its use would make this asset Sharia repugnant act well and of course, the use as we said that to not be acceptable if there are some haram activities going on. Now, there are before we go to the rules governing rental, I must emphasize on the mixed activity and this is something which a lot of Islamic banks and financial institutions face in the real world. So, there was an Islamic bank which was looking into buying a big property a tower in Central London. The ground floor of that tower was actually occupied by a high street bank an interest based bank. Now, the bank wanted to buy that property and that lease with the bank was I think for 17 years or more. So, if the bank Islamic bank had bought that property, it would have inherited that tenant with it. So, the issue was is it possible for an Islamic bank to rent its property to an interest based bank the answer is no. However, a compromise solution was accepted whereby it was deemed Sharia compliant to buy the property if the share of the rental of coming from the bank in all the rental total rental of the tower was less than 5% actually this happened to be the case and it was decided that for the period 17 years or so on that amount of the rental would be purified from the income coming from that tower. So, there are well defined rules governing this kind of investment and of course, these are related with the leasing or Ejara. Now, rules governing rental Ejara actually allows the users of Ejara to come up with flexible return this is very important. So, it is once in case of a sale once I have sold something to someone for a price I cannot change the price in case of Ejara the Ejara rentals can be reviewed on a frequent basis on a quarterly basis on a six monthly basis or an annual basis. There are rules governing ownership and liability of course, the asset is owned by the less or strictly speaking this is the responsibility of the less or to buy the insurance cover the car full cover and it must maintain the asset for the duration of the lease period. If it does not then it must compensate the less e if the less e is made responsible for these activities.