A lease made conditional on a loan

Question

Question: Zayd gave Amr his house and cash as a loan on the condition: “Invest this money in your trade and use the house as a warehouse; but the condition is that at all times you must keep goods in the warehouse, as security, to the extent (?) of what was lent. We will charge you only the rent of the warehouses and will take no compensation whatsoever for the money; later, when we demand our money, you are to repay only our money.

Answer

Letting a house on rent is a separate transaction, and lending money is a separate one. If, for the money that has been lent, the condition is laid down as security that goods to the amount of the loan must remain in the warehouse — just as a pledge (rahn)

Source: Fatawa Mahmudiyya

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