Equipment Trust Certificates

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Definition of "Equipment Trust Certificates"

A proposed Islamic financial instrument where an Islamic Trust Fund could issue equipment trust certificates (ETCs) to raise funds for purchasing a durable asset, like an aeroplane, to be leased to a company. The ETCs would carry a fixed rate of return from out of the lease money earned by the Islamic Trust Fund. The fund could deal in leasing of various types of assets at a time.


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