The ruling on the condition of taking pledged gold in the event of non-payment
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah preserve you. A man lent another man money and pledged gold with him, saying, “If I do not repay the amount, you will take the gold in place of the money.” Is this permissible?
Answer:
No. It is permissible for him to pledge gold with him, but his saying, “You will take the gold,” is not allowed. Rather, the gold is sold and the debt is paid from it, and if anything remains, it is returned to the owner of the gold.
He says: Honorable Shaykh, may Allah preserve you. A man lent another man money and pledged gold with him, saying, “If I do not repay the amount, you will take the gold in place of the money.” Is this permissible?
Answer:
No. It is permissible for him to pledge gold with him, but his saying, “You will take the gold,” is not allowed. Rather, the gold is sold and the debt is paid from it, and if anything remains, it is returned to the owner of the gold.
Source
شرح زاد المستقنع [52] — alfawzan.live (1:09:13)
The Arabic text is a machine transcription of the audio recording.