Once the collateral has been entrusted to a mutually agreed custodian, the pledgor cannot simply take it back, because the creditor retains a security interest. Nor can the pledgee remove it unilaterally, because the owner relied on that particular custodian.
A demand from either side to relocate the asset does not automatically override the other’s right. Consent or an applicable lawful process is needed.
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Neither party can withdraw the pledge unilaterally
Kitab al-Rahn: Salam, Sarf, Third-party Custody and Fungible Collateral
Once the collateral has been entrusted to a mutually agreed custodian, the pledgor cannot simply take it back, because the creditor retains a security interest. Nor can the pledgee remove it unilaterally, because the owner relied on that particular custodian.
A demand from either side to relocate the asset does not automatically override the other’s right. Consent or an applicable lawful process is needed.