The neutral custodian holds two sets of interests. As to the physical asset, he preserves the owner’s property; as to its secured financial value, his custody also safeguards the pledgee’s claim.
He is neither an owner nor a mere observer. His authority arises from the parties’ agreement, and he cannot favor one party in a way that extinguishes the other party’s right.
Opening interactive controls...
Whose possession does the custodian represent?
Kitab al-Rahn: Salam, Sarf, Third-party Custody and Fungible Collateral
The neutral custodian holds two sets of interests. As to the physical asset, he preserves the owner’s property; as to its secured financial value, his custody also safeguards the pledgee’s claim.
He is neither an owner nor a mere observer. His authority arises from the parties’ agreement, and he cannot favor one party in a way that extinguishes the other party’s right.