Collateral sells for 1,200 against a debt of 700. What is the basic allocation, assuming no other claims?

Kitab al-Rahn: Partial Repayment, Agency to Sell and Pledgee Rights

• Pledgee takes all 1,200 with the debt still outstanding
• 700 to settle the debt and 500 for the owner
• 500 to the debt and 700 to the pledgee
• Entire proceeds are the agent’s fee