If the two debts remain 40,000 and 60,000 while the collateral is worth 120,000, ordinary pledge liability relates to the combined 100,000 secured debt. The surplus 20,000 is treated as a trust component.
The governing general rule uses the lesser of the debt and relevant asset value. A jointly secured pledge does not erase that ceiling; liability for misconduct is a separate inquiry.
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When the asset exceeds the total secured debt
Kitab al-Rahn: Two Pledgees, Conditional Security and Custody
If the two debts remain 40,000 and 60,000 while the collateral is worth 120,000, ordinary pledge liability relates to the combined 100,000 secured debt. The surplus 20,000 is treated as a trust component.
The governing general rule uses the lesser of the debt and relevant asset value. A jointly secured pledge does not erase that ceiling; liability for misconduct is a separate inquiry.