Istisna - Instalment Sale
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Definition of "Istisna - Instalment Sale"
A sale agreement in which the prospective buyer makes a promise to buy specified goods, once they are acquired by the bank. The bank concludes with the producer of goods an ’istisna‘ contract to manufacture the goods according to the buyer’s specifications. When the goods are manufactured and accepted, they will be sold on instalment basis to the buyer who made the promise. See also two-tier ’istisna‘.