Benefiting from pledged property: land against a loan and crediting produce

Question

Question: (1) To lend money, take land in pledge, make use of it, and pay the land revenue to the government oneself — is this permissible or not? (2) Some people have the custom that, having lent money, they then write over the land to that creditor for cultivation in exchange for 5/10 (?) maunds (a maund being a unit of weight, ≈ 37 kg), whether the land yields any produce or not. What is (the ruling on) this? (3) Some people, having taken (something)

Answer

This form is not permissible. (2) If the 5/10 (?) maunds of grain are credited against the debt by a correct reckoning, it is valid; otherwise not. That is, the grain should be valued at the rate prevailing at the time it is received, and it should be considered as if we have recovered that much of our debt. (3)

Source: Fatawa Mahmudiyya

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