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22. Security (Rahn)

It is necessary to note that at present, what is commonly known as ‘rahn’ among people [in some places] is not, in reality, ‘rahn’ [in its jurisprudential sense]. Rather, it refers to the money that is given to the owner of a house as a loan (qarḍ) in return for use of the house as a place of residence. This act, if it takes place without rent (ijārah), is usury (ribā) and unlawful (ḥarām), and the person does not have the right to live in that house. If it takes place with rent, then, if giving the loan is conditional on the rent, it is again unlawful; and if the rent is on condition of the loan, then based on obligatory precaution (al‑iḥtiyāṭ al‑wājib) it is not permitted (jāʾiz). [Author]

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  • Ruling 2319

    In a security agreement, a person deposits some property with another person as collateral for a debt or for some property that he is responsible (ḍāmin) for so that in the event that he fails to pay off …

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  • Ruling 2320

    In a security agreement, it is not necessary to say a particular formula (ṣīghah). In fact, if the depositor gives his property to the depositee with the intention (qaṣd) of a security deposit and the depositee accepts it …

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  • 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 …

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  • Ruling 2322

    A person can only deposit as security property over which he can legally (sharʿan) have disposal. And if he deposits as security another person’s property with his consent, it is valid.

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  • Ruling 2323

    The property that is deposited as security must be something that is valid to buy and sell. Therefore, if wine or suchlike is deposited as security, it is not correct.

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  • Ruling 2324

    The profits from the deposited item belong to its owner, whether that be the depositor or another person.

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  • Ruling 2325

    A depositee cannot give or sell the deposited property without the owner’s consent, whether that be the depositor or another person. And if the owner consents afterwards, there is no problem.

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  • Ruling 2326

    If a depositee sells the deposited property with the owner’s consent, the proceeds of the sale will not be considered security as the property itself [was considered security]. The same applies if he sells it without the owner’s …

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  • Ruling 2327

    If the time arrives for a debtor to pay his debt and the creditor demands it but the debtor does not pay him, in the event that the creditor has agency (wikālah) to sell the property that has …

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  • Ruling 2328

    If a debtor owns nothing besides the house in which he resides and some things such as household furniture which he needs, a creditor cannot claim what he is owed from him. However, if the property that has …

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