"The Prophet ﷺ purchased food on credit from a Jew and gave him a shield of iron as collateral." [Reported by Al-Bukhari, no. 2068; and Muslim, no. 1603)]

______ المسألة الثانية: أركانه وشروطه وبعض الأحكام المتعلقة به Pillars, Conditions and Rules Related to Pledges PILLARS: The Rahn transaction is based on four pillars: 1. الراهن = Pledgor The person offering the collateral 2. المرتهِن = Pledgee The person receiving the collateral 3. المرهون = The Pledge Item The asset given as security 4. مرهون به = The Debt which the pledge is acting as a security for CONDITIONS: 1. It is invalid to pledge items that cannot be sold, such as endowments or impermissible items (eg. dogs, free humans); as they cannot be used to repay debts. قاعدة: «كل ما لا يصح بيعه لا يصح رهنه» Rule: "Everything that cannot be sold cannot be pledged." 2. The amount, type, and description of the pledged item must be clearly known. BENEFIT: The pledgor may not agree to have the collateral with the pledgee; instead, they may specify that the collateral be held by someone else. This person is known as (العدل); the party chosen and trusted to hold the collateral. 3. The pledger must have legal capacity (جائز التصرف). Additionally, they must own the item being pledged, or have authorisation to pledge it. 4. The pledger is not allowed to make use of the pledged item without the consent of the pledgee. The Prophet ﷺ said: ((لَا يَحِلُّ مَالُ امْرِئٍ إِلَّا بِطِيبِ نَفْسٍ مِنْهُ)) "The wealth of a person is not lawful except with their willing consent." [Narrated by Ahmad, 20172, and authenticated by Al-Albani in "Al-Irwa" (5/279)] Even if the pledgor permits the pledgee to benefit from the collateral, as long as it is a قرض loan, the pledgee is not permitted to benefit from the collateral, as the loan generates a benefit, which constitutes ribā. 5. The pledgee may not benefit from the pledged item unless it is an item that requires maintenance, such as a riding animal or a milk-producing animal. In such cases, the pledgee may ride the animal or consume its milk, provided they cover its maintenance costs. 6. The pledged item is considered a trust (أمانة) in the hands of the pledgee and is only liable for damage if negligence or misuse occurs. 7. When the debt becomes due, the debtor is obligated to repay it. If the debtor refuses, the judge may compel them to repay, including using disciplinary measures or imprisonment. If the debtor persists in refusal, the pledged item may be sold, and the debt settled from its value. Sheikh Al-Islam Ibn Taymiyyah (may Allāh have mercy on him) was asked about a person who is owed a debt by someone, and the debtor has given collateral for it, and the debt is due while the creditor is in need of his money. Is it permissible for the creditor to sell the collateral, or not? He replied: "If the debtor has given permission to sell the collateral, it is permissible. If not, the judge may sell it, if possible, and satisfy the creditor's right from it. Some scholars say that if this is not possible, the creditor should give it to a trustworthy person to sell, ensuring to take precautions such as witnessing the transaction, and recover the debt from it. And Allah knows best." [Majmu' Al-Fatawa (29/538)] This is the essence of the contract; for the collateral was given for this specific purpose. Otherwise, it serves no useful purpose and does not achieve the intended benefit. _____ Source: T.me/masjidsahabah https://whatsapp.com/channel/0029VadAK4n5K3zclcMjeg0F