The buyer/financier may ask for security to support the seller's delivery obligation. This may include a guarantee, mortgage or hypothecation.
If the seller defaults, a guarantor may be required to provide the agreed commodity. Where valid collateral exists, it may be realized so the buyer can obtain the commodity from the market or recover the advance price.
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Advance-Purchase Sale (سَلَم): Availability, Delivery Time and Financing Use
The buyer/financier may ask for security to support the seller's delivery obligation. This may include a guarantee, mortgage or hypothecation.
If the seller defaults, a guarantor may be required to provide the agreed commodity. Where valid collateral exists, it may be realized so the buyer can obtain the commodity from the market or recover the advance price.