It is a kind of transferable securities. It is issued based on the Musharekah contract in the production of vehicles (goods), which includes the right to sell for the owners of the bonds and the right to buy for the car manufacturer (producer) as a condition of the contract. The right to buy and sell can be exercised in a certain period of time for the car manufacturer and bondholders. During the period of exercise of sales option, it is possible for the owner of these bonds to purchase a certain type or types of car using the principal and benefits from investment based on the mentioned conditions in the contract. These bonds can be traded in the secondary market according to the regulations. Also, the total capital, shares of the bondholders, the car manufacturer and the method of profit distribution shall be transparent.

(Note: Any other goods can be placed instead of vehicles in this type of certificate.)

Methods of Settling at Maturity Date

1- Exercising the sales option by the bondholder: the bondholder can exercise the sales option during the period of exercise, so the bondholder is withdrawn from the participation. In order to settle with the car manufacturer, the bondholder can do one of the following methods:

A- Cash settlement of all investment funds along with the resulting benefits

B- The basis of calculation is the updated discount announced by the car manufacturer for delivery of the vehicle, and the rest is settled in cash between the parties. The duration of the executive operation of a vehicle delivery is subject to the vehicle sales contract.

2- Exercising the sales option by the car manufacturer: If the bondholder does not exercise the sales option at the specified time, the car manufacturer can exercise its sales option and settle with the bondholders.

3- Non-exercise of buying and selling options and continuation of participation: Non-exercise of option by bondholders and car manufacturer during the exercise period is considered as continuation of participation, so the car manufacturer is obliged to calculate the accounting profit at the end of the participation period and divide it in a certain ratio between itself and the bondholders.