A borrower owes 500 secured by a designated pledged item. The parties then agree to lend another 200 and say the very same item will secure both amounts.
For Abu Hanifah and Muhammad, the original pledge does not thereby secure the extra 200. Abu Yusuf permits the addition to attach.
The borrower’s underlying duty to repay the sums is not the issue in this example; the disagreement concerns the range of the existing collateral right.
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Worked scenario of the disagreement
Kitab al-Rahn: Storage Costs, Growth and Additional Collateral
A borrower owes 500 secured by a designated pledged item. The parties then agree to lend another 200 and say the very same item will secure both amounts.
For Abu Hanifah and Muhammad, the original pledge does not thereby secure the extra 200. Abu Yusuf permits the addition to attach.
The borrower’s underlying duty to repay the sums is not the issue in this example; the disagreement concerns the range of the existing collateral right.