Question 2 (Heng Kai Lun&Chang Cynthias group)

Over the years, controversial cases on BBA house financing have emerged and are
increasing in numbers. This posed problems to the consumers, financiers and also
the regulators.

A Malaysian court had earlier ruled that the arrangement of BBA resembles a
conventional loan, arguing that the bank should first buy the property from the
developer before selling it to the customer for a profit.A higher court had later
disagreed with this judgment, saying that the BBA contract was valid and it was a
sale and not a loan transaction.

In light of case law, discuss the above statement.

INTRODUCTION- HAN EN
Def of BBA
Evidence of BBA
Flows of BBA
Pricing for BBA & issues of BBAS diff pricing
o

All can refer to slides

XING NI

Application of BBA

Modus Operandi of BBA Financing in Malaysia.

legal documentation of bba facility in Malaysia

SLIDES

https://uaelaws.files.wordpress.com/2011/10/introduction_to_bba.pdf

**no need to discuss case**

REPORTED CASE INVOLVING ISSUES OF BBA

**Discuss only case of BBA**

First Phase: 1979-2002 (HUI HUI)

o Brief intro
o Discuss at least 4 case
o Discuss the summary/ conclusion of 1st stage
http://www.ifikr.isra.my/documents/10180/16168/researchpaper48.pdf
SLIDES
Second Phase: 2003- 2007 (CYNTHIA)
o Discuss at least 4 case
o Discuss the summary/ conclusion of 2nd stage
http://www.ifikr.isra.my/documents/10180/16168/researchpaper48.pdf
SLIDES
Third phase: Post-2008 (NICOLE)
o Can discuss more than 4 case
o Discuss the summary/ conclusion of 3rdstage
http://www.ifikr.isra.my/documents/10180/16168/researchpaper48.pdf
SLIDES
http://www.hhq.com.my/2013/03/the-legality-of-ai-bai-bithaman-ajil-facilityand-duty-of-end-financier-are-again-being-challenged-in-our-court/
I found this 2013 case, can use if u want

CONCLUSION (HAN EN)

o

http://www.skrine.com/are-bba-agreements-valid (can copy the whole conclusion here but modify

abit )

**note: each person prepare 4-5 min, send the slides to Cynthia when you done! Thankyou