وَإِذَا وَكَّلَ الرَّاهِنُ الْمُرْتَهِنَ
Translation: When the pledgor appoints the pledgee as his agent.
When the secured debt falls due, the pledgor may authorise the pledgee, an agreed neutral custodian, or another person to sell the pledged asset. This is a valid agency to sell: the agent acts on the owner’s authorisation, not because ownership has passed to the pledgee.
For example, if 500 dirhams remain unpaid, an authorised agent may sell the designated asset upon maturity and apply proceeds toward the debt. Mere lateness in payment does not convert the pledgee into the owner.
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Appointing an agent to sell the pledge
Kitab al-Rahn: Partial Repayment, Agency to Sell and Pledgee Rights
وَإِذَا وَكَّلَ الرَّاهِنُ الْمُرْتَهِنَ
Translation: When the pledgor appoints the pledgee as his agent.
When the secured debt falls due, the pledgor may authorise the pledgee, an agreed neutral custodian, or another person to sell the pledged asset. This is a valid agency to sell: the agent acts on the owner’s authorisation, not because ownership has passed to the pledgee.
For example, if 500 dirhams remain unpaid, an authorised agent may sell the designated asset upon maturity and apply proceeds toward the debt. Mere lateness in payment does not convert the pledgee into the owner.