What is the ruling on the banking facilities provided by Islamic banks, such as performance bonds for projects, where the bond is conditional on either the freezing of a sum of money, or the deposit of a portion thereof in exchange for obtaining a bond for a larger amount, or the installment of the amount over a specific period?

The transaction mentioned falls under the category of a letter of guarantee, which is a contract of suretyship if it is not covered. It is not permissible to take a fee for a contract of suretyship, but the bank may take actual fees in exchange for it, provided that this is not a ruse to take a fee. If the letter is partially covered, it is an agency for the covered portion and a suretyship for the remainder. The applicant for the letter may pay half the amount and keep the other half as collateral with the bank, or the beneficiary may pay the remaining half in installments to the bank. If the letter is fully covered, the contract is an agency, and the bank may take a fee. If it is a contract of suretyship, the bank may not take anything other than the actual fees for carrying out the transaction.