Retention can attach to the whole pledged property for both creditors, whereas loss accounting is apportioned according to each creditor’s part of the secured debt. That does not mean each creditor is credited with the whole asset value twice.
Correct analysis distinguishes the asset’s relevant value, the combined debt and the share owed to each creditor; liability from wrongful handling is considered separately.
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The allocation of loss follows the creditors’ debt shares
Kitab al-Rahn: Two Pledgees, Conditional Security and Custody
Retention can attach to the whole pledged property for both creditors, whereas loss accounting is apportioned according to each creditor’s part of the secured debt. That does not mean each creditor is credited with the whole asset value twice.
Correct analysis distinguishes the asset’s relevant value, the combined debt and the share owed to each creditor; liability from wrongful handling is considered separately.