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2008-12-16 - Western High Court of Denmark, n. 13. Afd. B-1650-08, U.2009.864/1V

State support · Denmark · Islamic financing

Inadequate formulation of Islamic deed

Key facts of the case - Amanah Kredit A/S (A) is a credit institution that gives loans to Muslims who wish to follow the rules of Islamic financing. A sold a property in Herlev to two clients with a conditioned deed. The deed was formulated so that the money was to be repaid to A within 30 years. The Land Registration Court refused to accept the deed.
A claimed the deed was well within the bounds of not only Danish legislation but also within the bounds of the Koran. A further pointed out that other Land Registration branches had accepted such deeds in the past. The Tax Council has also approved this method of finance.

Main reasoning of the court - The Court found that although the method of Islamic financing was accepted, the specific deed in this case should not be accepted because it was inadequately formulated.
Specifications regarding when and how much the two clients of A should pay during the 30 years needed to be formulated.