Benefit from a pledge

Question

Question: If someone gave Zayd an item worth one hundred rupees and took fifty rupees from Zayd on the condition that, if he does not return the fifty rupees within one year, that item worth one hundred rupees will become Zayd’s — or, let us say, he pledged it for one year — and now the year is ending but the money has not been returned, what must be done? The debtor does not have the means to pay the fifty rupees and take back his item.

Answer

In this way, the transaction did not become valid. Now that the time for repaying the loan has come and he has no money to give, let him now make a deal: “Such-and-such item of mine which is with you is worth this much, and your loan is this much; buy that item so that your loan is paid off.”

Source: Fatawa Mahmudiyya

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