If lawfully held collateral is lost without wrongful conduct, the earlier Hanafi rule applies: the deemed satisfaction of the debt is capped at the lesser of the debt and collateral value, while any excess is held in trust.
Once wrongful handling makes the pledgee liable as a usurper, the excess value cannot simply be excluded as an entrusted surplus. The object may be identical in both cases, but the legal character of custody has changed.
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Ordinary loss versus loss involving misuse
Kitab al-Rahn: Misuse, Loan Back, Liability and Death of the Pledgor
If lawfully held collateral is lost without wrongful conduct, the earlier Hanafi rule applies: the deemed satisfaction of the debt is capped at the lesser of the debt and collateral value, while any excess is held in trust.
Once wrongful handling makes the pledgee liable as a usurper, the excess value cannot simply be excluded as an entrusted surplus. The object may be identical in both cases, but the legal character of custody has changed.