5 – The creditor and the debtor may agree that all the remaining instalments shall fall due at once if the debtor fails to pay any instalment that has matured, provided he is not insolvent.

6 – If, because of the debtor’s death, bankruptcy, or wilful procrastination, the debt is deemed to have become immediately payable, it is permissible in all these cases to remit part of it in return for prompt settlement by mutual consent.

7 – The benchmark of insolvency that warrants a reprieve (nadhara) is that the debtor possess no assets beyond his basic necessities with which to discharge the debt, whether in cash or in kind.

And Allah knows best.

Resolution of the International Islamic Fiqh Academy on the Contract of Istisnaʿ: Resolution No. 65

In the name of Allah, the Most Compassionate, the Most Merciful.

The Council of the International Islamic Fiqh Academy, convened during its seventh conference session in Jeddah, Kingdom of Saudi Arabia, from 7 to 12 Dhu al-Qaʿdah 1412 AH (9–14 May 1992 CE),

after reviewing the papers submitted to the Academy on the subject of the “contract of istisnaʿ,”

and after listening to the discussions held on it, bearing in mind the objectives of the Sharia in securing people’s welfare and the juristic maxims that govern contracts and transactions, and in view of the major role the istisnaʿ contract plays in stimulating industry, opening wide avenues for financing, and advancing the Islamic economy,

resolved the following:

1 – The istisnaʿ contract—an agreement involving both labour and a specified object owed as a liability—is binding on both parties once its pillars and conditions are fulfilled.