Lesson 75 Finance (2)

Lending: a) Lending something for use is lawful for anything permissible, and is to be returned on request or on the agreed date.

Lending: b) The borrower should secure its return.

Lending: c) He can lend it to a third party with the consent of the lender, but he has no right to rent it.

Lending: d) The lender has the right to stipulate to have a warranty in case of its loss or damage, but if he did not stipulate that, then he is recommended to be given compensation.

Giving gifts: a)is permissible and recommended from a mature owner on condition of consent and acceptance.

Giving gifts: b) To return a gift is prohibited.

Giving gifts: c) It is offensive that the gift be given to gain a greater benefit.

Giving gifts: d) Justice in giving gifts is recommended, for example, if it is for sons and daughters.

Donations during one’s life (`Umra) : This is where the Muslim owner allows his fellowman to utilize his properties, that is, house or land, either:

a)throughout his life span and then it returns to the owner, or

b)to his successors after him so it becomes an irredeemable gift.

A donation after death (Ruqba): A donation promised by a Muslim to be given to another Muslim after the death of the former (Ruqba): It is to be executed, yet it is offensive.

Establishing an Endowment (Waqf): It is to devote wealth for certain utility or interest, so it is not inherited, given as a gift, or sold.

It is a recommended kind of dealing if the owner of waqf is sane and the endowed property is lawful and for a permissible purpose.

Lost and found: Should a Muslim find money or an article, he has to make an announcement through appropriate means.

If the owner did not appear, the article found belongs to him, unless it is something found in the Holy Mosque.

Wrongly taken property: This refers to other's property that has been seized by force. It is prohibited and the usurper should return it together with any benefits gained from it and to remove any additional buildings or plantations, and compensate for any damages or defects.

Suspension of Children and the Insane from Dealinsg: It is lawful to ban someone from managing his property due to prodigality, insanity, or bankruptcy. This includes:

a) The minor who has not yet reached puberty, so his decisions must have the consent of his parents or guardians until he becomes mature.

Suspension: b) the prodigal mature person

Suspension: c) the insane until he recovers

Suspension: d) the patient who has a severe disablity and chronic disease

Suspension of the bankrupt: e) the bankrupt person whose debts exceed the value of all his property.

Suspension of the bankrupt: Thus, the creditors have the right to interdict on his properties by selling them, leaving enough for his needs of food, drink and clothing.

Suspension of the bankrupt: Then the sum is divided among the creditors, unless the debt of any of them is something concrete in which case it can be restored.

Suspension of the bankrupt: Suspension is postponed in case of the insolvent bankrupt who owns nothing.

Evidence from the Qur ’ an and Sunnah

Deposits for safekeeping: The Messenger of Allah (SAWS) said: “Verily the best of you is the best in giving back the loans.” (Reported by al-Bukhariyy and Muslim)

Lending something for use: Allah says: ﴿وَيَمْنَعُونَ الْمَاعُونَ ﴾ [ الماعون : 7]

This means: “And refuse Al-Ma'un (small kindnesses e.g. salt, sugar, water, etc.).” (Al-Ma`un: 7)

Safwan Ibn-Umayyah (RA) narrated: “The Messenger of Allah (SAWS) borrowed coats of mail from me on the day of (the battle of) Hunayn. I asked: Are you taking them by force, Muhammad? He replied: No, it is a loan with a guarantee of their return.” (Reported by Ahmad)

Jabir Ibn-`Abdullah (RA) narrated: “The Prophet (SAWS) said: No owner of camels or cattle or flock of sheep or goats who does not pay his due (would be spared punishment) but would be made to sit on the Day of Resurrection on a soft sandy ground and the hoofed animals would trample him with their hoofs and gore him with their horns. And none of them on that day would be without horns, or with broken horns.

We said: Messenger of Allah, but what is due on them? He said: Lending of the male (for use) and lending of the bucket (used for drawing water for them) and for mating and milking them near water and providing them as a ride for the sake of Allah.” (Reported by Muslim)

Conditions of lending something for use: The Prophet (SAWS) said: “Muslims are on (i.e. stick to) their conditions.” (Reported by al-Bukhariyy)

Having warranty in case of its damage or loss: The Prophet (SAWS) said: “The hand which takes is responsible till it pays.” (Reported by at-Tirmidhiyy)

Gift giving: The Prophet (SAWS) said, "Shake hands and rancor will disappear. Give presents to each other and love each other and enmity will disappear.” (Reported by Malik)

Abu-Hurayrah (RA) narrated: “The Messenger of Allah (SAWS) used to accept gifts and used to give something in return.” (Reported by al-Bukhariyy)

The Prophet (SAWS) said: “He who likes to be granted more provision, and his life be prolonged, let him tie his kith and kin. (Reported by al-Bukhariyy and Muslim)

He (SAWS) also said: “He who gifts somebody a thing and gets it back is like a dog which vomits and then eats it up.” (Reported by al-Bukhariyy and Muslim)

He (SAWS) also said: “Be mindful of your obligation to Allah and do justice with respect to your children.” (Reported by al-Bukhariyy and Muslim)

He (SAWS) said: “It is not lawful for a man to make a donation or give a gift and then take it back, except a father regarding what he gives his child.” (Reported by at-Tirmidhiyy)

He (SAWS) also said: “If anyone does you a kindness, recompense him.” (Reported by an-Nasa’iyy)

He (SAWS) also said: “Whenever one receives a favor from another person and says to him: May Allah reward you well, he would have made full recompense in praising.” (Reported by at-Tirmidhiyy)

Donation for life: Jabir (RA) said: “The `Umra for which Allah's Messenger (SAWS) gave sanction is that a person may say: This (property) is for you and for your descendants. And when he said: That is for you as long as you live, then it will return to its owner (after the death of the donee).” (Reported by Muslim)

The Prophet (SAWS) said: “The `Umra belongs to whom it is given.” (Reported by Muslim)

The Prophet (SAWS) said: “Whoever is gifted a life grant, then it is for him and to his posterity. It would not return to him who gave it; for he conferred it as a gift, rules of inheritance will apply to it.” (Reported by Muslim)

Ruqba (donation on death of owner): The Prophet (SAWS) said: “Do not give property to go to the survivor and do not give life-tenancy. If anyone is given something to the survivor or given life-tenancy, it goes to his heirs.” (Reported by Ahmad, an-Nasa’iyy, and Abu-Dawud)

Endowment: The Messenger of Allah (SAWS) said: “When a human being dies, the reward of his good deeds stops except in three cases: a current charity, a knowledge from which people benefit, or a pious child invoking Allah for him.” (Reported by Muslim)

Lost and found: Zayd Ibn Khalid Al-Juhani (RA) narrated: “A man came to Allah’s Messenger and asked about Al-Luqatah (a fallen thing). The Prophet said: Recognize its container and its tying material and then make a public announcement about it for one year and if its owner shows up, give it to him; otherwise use it as you like.” (Reported by al-Bukhariyy and Muslim)

Lost and found in Al-Haram: The Prophet (SAWS) said: “Allah has made this town a sanctuary. Its thorny bushes should not be cut, its game should not be chased, and its fallen things should not be picked up except by one who would announce it publicly.” (Reported by al-Bukhariyy and Muslim)

Lost and found as for sheep: Yazid (RA) narrated: “The Prophet (SAWS) was asked regarding the case of a lost sheep. He said: You should take it, because it is for you, or for your brother, or for the wolf.” (Reported by al-Bukhariyy and Muslim)

Lost and found as for camels: Zayd Ibn Khalid Al-Juhani (RA) narrated: “The Prophet (SAWS) was asked: What about a lost camel? The Prophet (SAWS) said: “You have nothing to do with it, as it has its feet, its water reserve, and can reach places of water and drink, and eat trees till its owner finds it.” (Reported by al-Bukhariyy and Muslim)

Forcibly taken property: Allah says: ﴿ وَلاَ تَأْكُلُواْ أَمْوَالَكُم بَيْنَكُم بِالْبَاطِلِ ﴾ [ البقرة : 188]

This means: “And eat up not one another's property unjustly (in any illegal way e.g. stealing, robbing, deceiving, etc.).” (Al-Baqarah: 188)

The Prophet (SAWS) said: “Verily your blood and property are as sacred and inviolable.” (Reported by al-Bukhariyy and Muslim)

He (SAWS) also said: “He who wrongly took a span of land would be made to wear around his neck seven earths.” (Reported by al-Bukhariyy and Muslim)

The Prophet (SAWS) said, "It is umlawful for a man to take the stick of his brother against his will.“ (Reported by Ahmad)

The Messenger of Allah (SAWS) said: “Beware, if anyone wrongs a contracting man, or diminishes his right, or forces him to work beyond his capacity, or takes from him anything without his consent, I shall plead for him on the Day of Judgment.” (Reported by Abu Dawud)

Al-Bara’ Ibn-`Azib (RA) narrated: “The Messenger of Allah (SAWS) gave decision that the owners of gardens are responsible for guarding them by day, and the owners of the animals are responsible for guarding them by night. Any damage done by animals during the night is a responsibility lying on their owners.” (Reported by Ahmad)

Suspension of legal competence: Allah says: ﴿ وَلاَ تُؤْتُوا السُّفَهَاءَ أَمْوَالَكُمُ الَّتِي جَعَلَ اللَّهُ لَكُمْ قِيَامًا وَارْزُقُوهُمْ فِيهَا وَاكْسُوهُمْ ﴾ [ النساء : 5]

This means: “And give not unto the foolish your property which Allah has made a means of support for you, but feed and clothe them therewith.” (An-Nisa’: 5)

Allah says: ﴿ وابْتَلُوا الْيَتَامَى حَتَّى إِذَا بَلَغُوا النِّكَاحَ فَإِنْ آنَسْتُم مِّنْهُمْ رُشْداً فَادْفَعُوا إِلَيْهِمْ أَمْوَالَهُمْ ﴾ [ النساء : 6]

This means: “And try orphans (as regards their intelligence) until they reach the age of marriage; if then you find sound judgement in them, release their property to them.” (An-Nisa’: 6)

And says: ﴿ وَإِن كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ﴾ [ البقرة : 280]

This means: “And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay.” (Al-Baqarah: 280)

The Prophet (SAWS) placed Mu’adh’s property under guardianship when he became sunk with debts; he (SAWS) then sold it and paid his debts on his behalf until nothing remained to Mu’adh. (Reported by Al-Hakim)

The Prophet (SAWS) said: “There are three whose actions are not recorded: a lunatic whose mind is deranged till he is restored to consciousness, a sleeper till he awakes, and a boy till he reaches puberty.” (Reported by Abu-Dawud)

Bankruptcy The Messenger of Allah (SAWS) said: “He who found his property intact with a man (who bought it but who later on) became insolvent (or a person who became insolvent), he (the seller) is entitled to get it more than anyone else.” (Reported by al-Bukhariyy and Muslim)

Allah’s Messenger (SAWS) said to the creditors: “Take what you find, you will have nothing but that.” (Reported by Muslim)