The World Federation One Stop Fiqh

Ruling 2321

The depositor and the depositee must be of the age of legal responsibility (bāligh), sane (ʿāqil), and no one must have compelled them [to enter into the security agreement]. Furthermore, the depositor must not have been proclaimed bankrupt (mufallas), nor must he be foolish with finances (safīh) (the meaning of these terms was explained in Ruling 2272). However, if a bankrupt person deposits as security property that is not his or property over which he has not been prohibited to have disposal, there is no problem.