Under the main ruling, the compensation takes the place of the destroyed collateral and is held as security. It is not an unconditional windfall for the pledgee.
Example: a pledged machine is worth 70,000 and a stranger destroys it. Once liability is established, the compensation replaces the pledged object. If the debt is 90,000, the compensation and the remaining debt must be accounted for separately.
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Status of compensation paid by a third party
Kitab al-Rahn: Manumission, Destruction and Liability for Injury
Under the main ruling, the compensation takes the place of the destroyed collateral and is held as security. It is not an unconditional windfall for the pledgee.
Example: a pledged machine is worth 70,000 and a stranger destroys it. Once liability is established, the compensation replaces the pledged object. If the debt is 90,000, the compensation and the remaining debt must be accounted for separately.