Lending the Madrasa’s Money

Question

There is an elementary religious school whose income consists mostly of the hides of sacrificial animals, sadaqat al-fitr and a fortieth part of grain. The rector of the madrasa gave some money as a loan to a teacher; as it happened, he died. Now there is no way of recovering this loan, nor is the rector himself present to pay off the loan on his own behalf.

Answer

Repaying the loan in this way is appropriate when there is no other way. Lending the madrasa’s money is not permitted. The rector is a trustee (amin), and he has no right to dispose of a trust (amana) in this way.

Source: Fatawa Mahmudiyya

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