Streamlining co-Islamic financings

The Common Terms Agreement (CTA) has been widely used to facilitate arrangements between borrowers and multiple financiers through integration. A new approach utilizing the Facilities Co-ordination Agreement (FCA) may be more effective for negotiating shari`a-compliant arrangements, particularly with regards to pro rata utilization of the facilities, repayments, and sharing provisions. Financiers negotiate terms individually, allowing for an arrangement that does not compromise shari`a-compliance through a commonality of terms. Utilizing the FCA can save the borrower time and money, and in certain situations may serve as a replacement for the CTA.