Because one physical asset serves two security rights, the parties must arrange custody without defeating either claim. Hanafi discussions contemplate agreed methods such as alternating physical custody or an authorized neutral custodian.
The arrangement does not erase the nonholding creditor’s secured debt. Nor should an authorized joint arrangement be confused with an unauthorized transfer to an outsider, which is governed by the later custody rule.
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Arranging custody between two pledgees
Kitab al-Rahn: Two Pledgees, Conditional Security and Custody
Because one physical asset serves two security rights, the parties must arrange custody without defeating either claim. Hanafi discussions contemplate agreed methods such as alternating physical custody or an authorized neutral custodian.
The arrangement does not erase the nonholding creditor’s secured debt. Nor should an authorized joint arrangement be confused with an unauthorized transfer to an outsider, which is governed by the later custody rule.