The debt arose from the underlying obligation independently of the collateral. The pledged asset was security for repayment, not the source of the debt itself.
If the creditor temporarily returns it and it is accidentally lost in the owner’s custody, the security may be gone but the debt remains. Extinguishing the debt requires payment, release, or another recognized legal cause, not merely destruction of the collateral under these circumstances.
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Why the debt survives that loss
Kitab al-Rahn: Misuse, Loan Back, Liability and Death of the Pledgor
The debt arose from the underlying obligation independently of the collateral. The pledged asset was security for repayment, not the source of the debt itself.
If the creditor temporarily returns it and it is accidentally lost in the owner’s custody, the security may be gone but the debt remains. Extinguishing the debt requires payment, release, or another recognized legal cause, not merely destruction of the collateral under these circumstances.