Chapter on Pledging (rahn

"It is the responsibility of the pledger (rahin), and the pledgee (murtahin) has the right to claim his money from him."

Messenger of Allah (swt) (peace be upon him and his family) said: "The back (of a riding animal) may be ridden if it is given as collateral (rahn), and the one who rides it is responsible for its expenses. And the milk may be drunk if it is given as collateral, and the one who drinks the milk is responsible for its expenses."

I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim (as)) about a man who takes a slave as collateral (rahn), and the slave suffers an injury, such as losing an eye or any reduction in his physical condition. Who bears the loss for such a deficiency? Imam (as) replied: "It is upon his master." I said: "The people say that if you give a slave as collateral and he falls ill, loses an eye, or suffers a physical defect, the man's wealth should decrease in proportion to the loss in the slave." Imam (as) said: "What do you think, if the slave committed murder, who would bear the liability for his crime?" I replied: "His liability would remain upon him."

I asked Abu Abdullah (as) about an item held by two men, one of them claims, "I entrusted it to you as a deposit (wadi'ah)," while the other says, "It is collateral (rahn) with me." Imam (as) said: "The statement of the one who claims it is collateral (rahn) is accepted unless the one who claims it was entrusted (wadi'ah) presents witnesses."

I asked Abu Abdullah (as) about a man who takes a riding animal or a camel as collateral (rahn) for his money, does he have the right to ride them? Imam (as) said: "If he is the one feeding them, then he has the right to ride them. But if the one who pledged them as collateral is the one feeding them, then he does not have the right to ride them."

I asked Abu Abdullah (as) about a man who took a piece of land or a house as collateral (rahn) for his money, and both the land and the house produced abundant yield. Imam (as) said: "It is upon the one who took the land and the house as collateral for his money to calculate what he has taken from the yield and deduct it from the debt owed to him."

I asked Abu Abdullah (as) about a man who became bankrupt and owed debts to some people, some of whom held collateral (ruhun) while others did not. The man then died, and his remaining wealth was insufficient to cover his debts. Imam (as) said: "All that he left behind, including the collateral and other possessions, shall be divided among the creditors in proportion to their shares of the debt."

Hadith.4101 - He (narrator) said: I asked him about a man who deposited collateral (rahn) with another man against a debt of one thousand dirhams, while the value of the collateral was two thousand dirhams, but the collateral was lost. Imam (as) said: "The creditor shall reclaim from the debtor the surplus value of what was pledged. If the value of the collateral was less than the debt, the creditor shall reclaim the remaining balance from the debtor. However, if the value of the collateral equaled the debt, then the collateral suffices as payment for the debt."

"Regarding a pledge (rahn), if it is lost while in the possession of the creditor (murtahin) without being consumed by him, he may reclaim his right from the pledger (rahin) and take it. However, if the creditor consumed it, then they should settle the surplus value between them."

"If a man pledges (rahn) a piece of land that contains fruit, then its produce shall be accounted as part of his payment. He is also entitled to calculate what he worked on and spent on it. Once his debt is settled, he must return the land to its owner."

"In a case of dispute over a pledged item (rahn) between the pledger (rahin) and the pledgee (murtahin), where the pledger claims its value is such-and-such, and the pledgee claims it is of a higher value, the pledgee shall be believed until the value covers the debt because he is considered trustworthy."

"I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim (as)) about a man who has a pledged item (rahn) in his possession but does not know to whom it belongs. Imam (as) said: 'I do not recommend that he sell it until its owner comes.' I said: 'He does not know to whom it belongs.' Imam (as) replied: 'Does it have any excess value or deficiency?' I said: 'What if it has excess or deficiency, what should he do?' Imam (as) said: 'If it has a deficiency, it is easier; he may sell it and be rewarded for what remains. However, if it has excess value, that is more difficult; he should sell it and hold the surplus until its owner comes.' "

" Imam (as) replied: "No, it should not be sold until he returns."

"I asked Abu Abdullah (as) about a man who pledged two bracelets (siwarayn) as security with another man, and one of them was destroyed." Imam (as) replied: "He may reclaim his right from what remains."

Hadith.4108 - Imam (as) said regarding a man who pledged a house as security with another man, and the house either burned down or collapsed: "His wealth remains in the soil of the land."

Hadith.4109 - Imam (as) was asked about a man who had pledged a slave as security, and the slave developed leprosy, or about a man who pledged goods as security but did not inspect, maintain, or move those goods, and they were consumed by worms. Imam (as) said: "No, it does not diminish from his wealth by that amount."

"He may reclaim his money from him."

I wrote to Abu Al-Hasan (as) about a man who died and had a debt, leaving nothing except a pledged item in the possession of someone. The value of the pledge did not exceed the creditor's due amount. I asked whether the creditor could take it for his claim or if all creditors shared in it. Imam (as) wrote: "All creditors are equal in this matter and must distribute it among themselves in proportion to their claims." He further said: I wrote to Imam (as) about a man who died, leaving heirs. Then someone came forward, claiming a debt against him and that he held a pledge for it. Imam (as) wrote: "If he has a claim against the deceased but has no evidence for it, he may take his due from what is in his possession and return the remainder to the heirs. However, if he admits to what he possesses, he is bound by it and must provide evidence for his claim. He must fulfill his right after swearing an oath. If he cannot provide evidence and the heirs deny the claim, then the heirs must take an oath of knowledge, swearing by Allah (swt) that they have no knowledge of any right owed to him by their deceased."

"If all of his goods are completely destroyed and nothing remains, then there is nothing (no liability) upon him." Imam (as) further said: "However, if he claims that the loss occurred from among his possessions while he still possesses other property, he will not be believed."

I asked him about a man who took two slaves as collateral (rahn) from another man, and one of them perished. Does his right apply to the other slave? Imam (as) said: "Yes." I asked: What if it was a house that burned down? Does his right remain in the land? Imam (as) said: "Yes." I asked: What if it was two animals and one of them perished? Does his right apply to the other? Imam (as) said: "Yes." I asked: What if it was merchandise that was destroyed because it was left for a long time, or food that spoiled, or a servant who became blind due to smallpox, or clothes that were left folded without being aired out until they were ruined? Imam (as) said: "All of this is the same case. His right remains applicable to the remaining property."

I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim (as)) about a man who takes an item as collateral (rahn) for one hundred dirhams, while its value is three hundred dirhams, and it gets destroyed. Is the man required to return two hundred dirhams to its owner? Imam (as) said: "Yes, because he took collateral that had surplus value and then caused its loss." I asked: What if half of the collateral is destroyed? Imam (as) said: "It will be accounted for accordingly." I asked: Should they return the surplus value between them? Imam (as) said: "Yes."

"Commander of the Faithful (as) ruled regarding collateral (rahn) that if its value is greater than the debt owed to the creditor and it is destroyed, the excess value must be returned to the owner of the collateral. And if the collateral is worth less than the debt and is destroyed, the debtor must pay the remaining amount owed to the creditor. But if the value of the collateral equals the debt, then there is no further obligation on either party."

"If two parties disagree about the value of collateral (rahn), with one claiming it was pledged for one thousand dirhams and the other claiming it was pledged for one hundred dirhams, the one claiming the higher value must present evidence. If he cannot provide evidence, the one claiming the lower value must take an oath." "Similarly, if the collateral is worth either less or more than the claimed amount, and they disagree about its status, whether it is collateral (rahn) or a deposit (wadi'ah), the one claiming it is a deposit must present evidence. If he cannot provide evidence, the one claiming it is collateral must take an oath."

"I asked Abu Ibrahim (Imam Musa ibn Jafar Al-Kadhim (as)) about a man who pledges a slave, garment, jewelry, or household items as collateral, and the owner of the property tells the creditor, 'You are permitted to use this garment, wear it, benefit from the property, and use the servant.' The Imam (as) replied: 'It is lawful for him if the owner permits it, but I do not like him to do so.' " I then asked: 'What if someone pledges a house that produces income, who does the income belong to?' Imam (as) replied: 'The income belongs to the owner of the house.' " I further asked: 'What if someone pledges a barren land and the owner of the land tells him to cultivate it for himself?' Imam (as) replied: 'This is lawful. It is not the same as the previous case. He cultivates it with his own money, so it is lawful for him as the owner has permitted it, because he invests his own resources and develops the land.' "

"I asked Abu al-Hasan (as) about a man whose brother passed away and left behind a box containing pledged items. Some of these items had the names of their owners and the amounts for which they were pledged, while others had no information about their owners or the amounts for which they were pledged. What is the ruling regarding the items whose owners are unknown?" Imam (as) replied: 'They are treated as part of his property.' "

"I asked Abu Abdullah (as) about the report that has been narrated: 'Whoever relies more on a pledge (rahn) than on his believing brother, I am free from him.' Imam (as) replied: 'That applies when the truth becomes manifest, and our Qaim (the Mahdi Imam Muhammad ibn Hassan Al-Mahdi (as)) from among the Ahlulbayt (as) rises.' I then asked about the report that says: 'The profit earned by a believer from another believer is riba (usury).' Imam (as) said: 'That applies when the truth becomes manifest, and our Qaim (as) from among the Ahlulbayt (as) rises. As for today, there is no harm if a believer sells to his believing brother and earns profit from him.' "

I asked Imam (as) about a man who pledges his bondwoman (as collateral). Is it permissible for him to have intercourse with her?" Imam (as) replied: "Those who have taken her as collateral (the creditors) prevent him from having access to her." I then asked: "What if he manages to be with her privately without the knowledge of those who took her as collateral?" Imam (as) said: "Yes, I do not see any harm in this."