Common use of IBRA’ (REBATE Clause in Contracts

IBRA’ (REBATE. 5.1 The Bank will grant rebate (Ibra’) to the Customer where there is:- (i) Early settlement or early redemption, including those arising from prepayments; (ii) Settlement of the original financing contract due to financing restructuring exercise; (iii) Settlement by the Customer in the case of default; (iv) Settlement by the Customer in the event of termination or cancellation of the Facility before expiry of the Facility Tenure; and (v) In the event the Effective Profit Rate is lower than the Ceiling Profit Rate. 5.2 The rebate (Ibra’) for settlement is calculated in accordance to the following formula:- Settlement Amount: Outstanding Selling Price + Instalment Due + Late Payment Compensation (Ta’widh) + Other Charges - Rebate (Ibra’) Where:- Rebate (Ibra’) = Deferred Profit – Early Settlement Charges Deferred Profit means unaccrued profit at the point of settlement of the Facility.