Implementation of Authentic Notarial Deed in Making Financing Contract in Islamic Banks

DOI

10.2991/assehr.k.200306.218How to use a DOI?

Keywords

Notary, contract, Islamic bank

Abstract

Islamic banking is a financial institution that must comply with Islamic principles in carrying out its business activities. Islamic banking functions as an intermediary institution to mobilize funds from customers and redistribute the funds to customers in the form of financing. Notary as a public official is authorized to make authentic deeds, especially in creating financing contracts in Islamic banking. The method used in this study was normative juridical using secondary data. The results of the study indicated that the implementation of a contract on an Islamic bank made by a Notary must include a clause in accordance with Islamic Principles. A notary can conduct some deeds in Islamic banks, including certain legal actions, especially the murabahah, musyarakah, mudharabah and ijarah financing contracts. Concerning the fulfillment of sharia principles in the financing contract in the form of a notary deed, it has not been fully adhered to the sharia principle. Hence, it is potentially illegitimate based on the provisions of Islamic law. The notary in formulating the Islamic contract deed made by notary must be following the Act of Notary Position without leaving the Islamic principles and procedures for creating a notary deed.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zulfitri
AU  - Runtung
AU  - Tan Kamello
AU  - Muhammad Yamin
PY  - 2020
DA  - 2020/03/13
TI  - Implementation of Authentic Notarial Deed in Making Financing Contract in Islamic Banks
BT  - Proceedings of the International Conference on Law, Governance and Islamic Society (ICOLGIS 2019)
PB  - Atlantis Press
SP  - 228
EP  - 230
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200306.218
DO  - 10.2991/assehr.k.200306.218
ID  - 2020
ER  -