Section 151A: Islamic financing arrangement

151A. Islamic financing arrangement (1) Sections 7, 10, 19, 58, 84, 111A, 111B, 111C, 111K and 123 shall apply in relation to any Islamic financing arrangement as if a reference in any of those provisions to interest payable, paid, derived, received or incurred in relation to any loan, deposit or mortgage were a reference to the effective return of the Islamic financing arrangement. (2) For the purpose of this section— “bank”, “Islamic banking business”, “non-bank deposit taking institution” and “Islamic deposit” have the same meaning as in the Banking Act; [Issue 9] I5 – 94 (2) Revised Laws of Mauritius “effective return” means the return in lieu of interest that is payable, paid, derived, received or incurred under an Islamic financing arrangement. “Islamic financing arrangement” means a financing arrangement between— (a) a bank and any other person, in so far as the arrangement is related to its Islamic banking business; or (b) a non-bank deposit taking institution and any other person with respect to the acceptance of Islamic deposit and the financing of the activities of the non-bank deposit taking institution or such other activities as the central bank may approve, the aims and operations of which are, in addition to the conventional good governance and risk management rules in consequence with the ethos and value system of Islam; [S. 151A inserted by s. 15 (o) of Act 18 of 2008 w.e.f. 19 July 2008.]