Volume 16 - Special Issue on Legal Developments
MLJ 2022, 16 - Special Issue on Legal Developments: 633-647 |
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Salar M, Niknejad J, Fallah Kharyeki M. The Legal Status of Contracts Granting New Bank Facilities in Order to Settle Previous Facilities. MLJ 2022; 16 :633-647
URL: http://ijmedicallaw.ir/article-1-1628-en.html
URL: http://ijmedicallaw.ir/article-1-1628-en.html
1- Department of Law, Ayatollah Amoli Unit, Islamic Azad University, Amol, Iran.
2- Department of Law, West Tehran Branch, Islamic Azad University, Tehran, Iran
2- Department of Law, West Tehran Branch, Islamic Azad University, Tehran, Iran
Abstract:
Background and Aim: One of the methods of banks to reduce outstanding claims is to grant new facilities, which of course has always been a subject of discussion. The purpose of this article is to examine the legal status of contracts for granting new bank facilities in order to settle previous facilities.
Method: The present paper is descriptive and analytical using the library method.
Ethical Considerations: In all stages of writing the present study, the originality of the texts, honesty and trustworthiness have been respected.
Results: In order to settle the previous facilities, banks conclude new partnership agreements with the borrower with the aim of settling the previous facilities. At the end of the contract, the borrower does not have the ability to settle the loan. The bank or credit institution will charge interest and late payment penalty and draw up a new contract under the title of civil partnership and settle the old loan amount. Civil partnership contracts are known as one of the most widely used banking contracts, which the bank concludes to grant facilities to individuals. In fact, according to many experts, Islamic banking is that people share in profits and losses proportionally by concluding a partnership contract. In such facilities, the share of the partnership in the partnership contract is usually not deposited into the account of the civil partnership account, and this amount is taken to clear the debts of the debtors.
Conclusion: Contracts for granting new bank facilities in order to settle the previous facilities are correct if they should not be formal and due to reasons of force majeure and in fact, they are illegal, while this is not the case.
Please cite this article as:
Salar M, Niknejad J, Fallah Kharyeki M. The Legal Status of Contracts Granting New Bank Facilities in Order to Settle Previous Facilities. Medical Law Journal. 2022; 16(Special Issue on Legal Developments): e38.
Method: The present paper is descriptive and analytical using the library method.
Ethical Considerations: In all stages of writing the present study, the originality of the texts, honesty and trustworthiness have been respected.
Results: In order to settle the previous facilities, banks conclude new partnership agreements with the borrower with the aim of settling the previous facilities. At the end of the contract, the borrower does not have the ability to settle the loan. The bank or credit institution will charge interest and late payment penalty and draw up a new contract under the title of civil partnership and settle the old loan amount. Civil partnership contracts are known as one of the most widely used banking contracts, which the bank concludes to grant facilities to individuals. In fact, according to many experts, Islamic banking is that people share in profits and losses proportionally by concluding a partnership contract. In such facilities, the share of the partnership in the partnership contract is usually not deposited into the account of the civil partnership account, and this amount is taken to clear the debts of the debtors.
Conclusion: Contracts for granting new bank facilities in order to settle the previous facilities are correct if they should not be formal and due to reasons of force majeure and in fact, they are illegal, while this is not the case.
Please cite this article as:
Salar M, Niknejad J, Fallah Kharyeki M. The Legal Status of Contracts Granting New Bank Facilities in Order to Settle Previous Facilities. Medical Law Journal. 2022; 16(Special Issue on Legal Developments): e38.
Keywords: New Bank Facilities, Settlement of Previous Facilities, Partnership Agreement, Share of the Company
Type of Study: Original Article |
Received: 2023/03/28 | Accepted: 2023/05/29
Received: 2023/03/28 | Accepted: 2023/05/29
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