<P> Rahn (collateral or pledge contract) is property pledged against an obligation . A rahn contract is made in order to secure a financial liability . According to Mecelle, rahn is "to make a property a security in respect of a right of claim, the payment in full of which from the property is permitted ." Hadith tradition states that the Islamic prophet Muhammad purchased food grains on credit pledging his armor as rahn . </P> <P> In a Wakalah contract, a person (the principal or muwakkel) appoints a representative (the agent or wakil) to undertake transactions on his / her behalf, that the principal does not have the time, knowledge or expertise to perform themselves--similar to a power of attorney agreement in conventional legal terms . Wakalah should be a non-binding contract for a fixed fee . The agent's services may include selling and buying, lending and borrowing, debt assignment, guarantee, gifting, litigation and making payments, and are involved in numerous Islamic products like Musharakah, Mudarabah, Murabaha, Salam and Ijarah . </P> <P> An example of wakalah is found in a mudarabah profit and loss sharing contract (above) where the mudarib (the party that receives the capital and manages the enterprise) serves as a wakil for the rabb - ul - mal (the silent party that provides the capital) </P> <P> From the point of view of depositors, "Investment accounts" of Islamic banks--based on profit and loss sharing and asset - backed finance--play a similar role to the "time deposits" of conventional banks . (For example, one Islamic bank--Al Rayan Bank in the United Kingdom--talks about "Fixed Term" deposits or savings accounts). In both, the depositor agrees to hold the deposit at the bank for a fixed amount of time . In Islamic banking return is measured as "expected profit rate" rather than interest . </P>

Islamic finance as an ethical interest-free regime built on pls is meant