SOLUTION: Bahrain Institute of Banking and Finance Banking Business and Trust Law Questions


1.Mr. Jawad who runs a happy race restaurant and catering concern has guard representations after a while XYZ Islamic bank for the developed 3 years. He has a popular representation and his rest investments are invested in Shari’a alert boarding representations / guards. Now he is because induction a financing quickness for 2 exhibition vans to be used in his concern. His son Salman who thought-out in the UK and worked there for 2 years, avail to Bahrain and opens an representation in a ordinary bank DEF Bank. He is to-boot animated to imply further encircling CBB’s role as the uncompounded mouldr of the financial sector in Bahrain.

(a) For Mr. Jawad’s guards and boardings, expound 2 contrariant types of Shari’a alert guard / boarding representations. (8 marks)

(b) What financing quickness would you observe agreeable for Mr. Jawad’s capability of 2 exhibition vans. Give reasons for your rejoinder. (8 marks)

(c) In the CBB Rulebook Volume 1 for ordinary banks, depict any 3 Principles of Concern which allot to ordinary bank licensees and public living-souls. (6 marks)

(d)Discuss 5 ocean duties and powers acquired on the CBB as uncompounded mouldr of Bahrain’s financial services sector beneath the Central Bank of Bahrain and Financial Institutions Law 2006. (8 marks)

2.Mr. Abbas was one of the founding partners of Wheels & Deals a open house union in Bahrain, trading in multiform stinted volume and lubricants used by automobile dealers and manufacturers in the GCC. As the union grew in extent, the partners unwavering to alter its foundation to a poor amenability union. It was Mr. Abbas’ vision that one day they would be a articulation accumulation union listed in the Bahrain Bourse. However, in new-fangled years, the union has been making losses due to a open downturn in the mouldment and in the automobile sector. The union is decision it increasingly reserved to pay its exchange creditors and other bank creditors and may own to refine for stagnation.

(a)What are the allowable implications of a Open House union as assimilated to a Poor Amenability union and a Articulation Accumulation union? (10 marks)

(b)Explain how a commutation treaty benefits the mortgagor and creditors in an repudiation. (10 marks)

(c)Discuss some of the ocean alters and developments in the new Stagnation Law of Bahrain 2018. (10 marks)

3.Jamal owns a sclaimant manufacturing concern surrendering packaging embodied and he decides to similarity his bank for an overdraft quickness to be used, if required, during the industrious conjuncture to forfeiture his raw embodieds. He to-boot needs a vocable hypothecation for forfeiture of new machinery. The lending treaty after a while his bank contains distinct dignified allowable portions such as provisions authority, representations and warranties, omission portion, present reprisals portion, castigatory cause portion for novel cancelment and others. Jamal shortnesss percolation on some of these portions. The lending literature to-boot receives pawn of the antecedent and machinery for the facilities granted.

(a)Give examples of provisions authority and representations and warranties to expound their destruction. (8 marks)

(b)Discuss the weight to the claimant of the omission portion, present reprisals portion and castigatory cause portion for novel cancelment. (8 marks)

(c)Explain how an overdraft is contrariant from a vocable hypothecation. (6 marks)

(d)Why does the claimant receive pawn and perpend the advantages and disadvantages of induction place as pawn. (8 marks)

4.The Al Khaja race own happy multi-million dollar manufacturing and trading concernes for the developed 30 years in the Middle East, grounded in Bahrain. Since they are getting older and are now in their 70’s, Mr. and Mrs. Al Khaja shortness to beget a charge investment of some of their riches for their progeny and grandchildren. They shortness to fix a chargeee after a while the indispensable expertise to mould the investments as they contemplate fit for these intentions.

They are to-boot because elucidation up an Islamic charge (Waqf) for some kind objectives and causes such as for education and healthcare of beneathprivileged progeny and they shortness to fix that the charge investments get be well-behaved-behaved mouldd.

(a)How can the charge be begetd beneath the Financial Charge Law 2006 and its new-fangled emendation in 2016? Discuss the role of the contrariant parties implicated in its romance. (10 marks)

(b)Critically perpend the ocean hues and duties of the chargeee and the intention of fixing a Charge Protector. (10 marks)

(c)What are the benefits of elucidation up an Islamic Waqf and how does the role of the Mutawalli assimilate after a while that of a chargeee in a Common law charge. (10 marks)

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