عَلَى يَدِ عَدْلٍ جَازَ
Translation: It is permissible to place it with a trusted custodian.
An ʿadl is a trusted third person mutually appointed by pledgor and pledgee to hold the asset. Al-Quduri permits this arrangement: the asset need not always remain in the creditor’s direct physical custody.
For example, both parties agree to store pledged jewelry in a mutually trusted custodian’s safe. After valid delivery, the collateral rights of the parties continue to apply.
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Pledge held by an agreed independent custodian
Kitab al-Rahn: Salam, Sarf, Third-party Custody and Fungible Collateral
عَلَى يَدِ عَدْلٍ جَازَ
Translation: It is permissible to place it with a trusted custodian.
An ʿadl is a trusted third person mutually appointed by pledgor and pledgee to hold the asset. Al-Quduri permits this arrangement: the asset need not always remain in the creditor’s direct physical custody.
For example, both parties agree to store pledged jewelry in a mutually trusted custodian’s safe. After valid delivery, the collateral rights of the parties continue to apply.