Lease certificate: refers to assets and bonds issued by asset leasing company in order to finance any kind of assets and rights and that ensure that the owners would be beneficiaries of the incomes obtained from such assets and rights in proportion to their rights.
Types and Conditions regarding Lease Certificate issued by Notification on Lease Certificates
1. Lease certificate based on ownership (Icara sukuk).
Lease certificates based on ownership are the lease certificates issued to financethe assets and rights to be taken over from the source organization by the Asset Leasing Company so that the same would be leased to the source organization or third parties or managed on behalf of the asset leasing company.
2. Lease certificate based on management contract (Sukuk Wakalah)
Lease certificates based on management contract are leases certificates which are issued in order to transfer to the Asset Leasing Company the revenues which are obtained as a result of management on behalf of the Asset Leasing Company including the leasing of the assets and rights of the source organization throughout the fixed term.
3. Lease certificate based on purchase and sale (Sukuk al-murabaha)
Lease certificates based on purchase and sale are lease certificates issued to finance purchase of asset or right in forward sale of any asset or right to the companies with the qualifications stated in the first sub-clause of Article 12 once such asset or right has been purchased by the Asset Leasing Company.
4. Lease certificate based on partnership (Mudaraba/Muşaraka sukuk)
Lease certificates based on partnership are the lease certificates issued by Asset Leasing Company to be a partner in the joint venture.
- In lease certificate issuance based on partnership which finance the joint ventures in which Asset Leasing Company invested capital exclusively; the management of the joint venture is carried out by the entrepreneur or the third party assigned by the entrepreneur.
- Sharing rate for the profit to be obtained from the joint venture between the entrepreneur and Asset Leasing Company or the fixed fee to be obtained by the entrepreneur under the agency contract are stated in the Articles of Partnership.
- The issuance amount of lease certificate based on partnership shall not exceed 90% of the fair value identified in the valuation report, which is prepared in accordance with Article 11 of Communique on Lease Certificates.
5.Lease Certificate based on Agreement for Work (Work sukuk)
Lease certificates based on Agreement for Work are the lease certificates issued in order to create a work under an Agreement for Work, to which the Asset Leasing Company is a party acting as the business owner.
- Asset Leasing Company may lease the work to be created or make the same directly subject to sales agreement without leasing. It is mandatory to collect the entire sales price of the lease certificate by the Asset Leasing Company on the expiration date of the lease certificate and make payment to the owners of the lease certificate.
- The issuance amount of lease certificate based on Agreement for Work shall not exceed 90% of the fair value identified in the valuation report prepared in accordance with Article 11.
