The Ruling on Requiring a Gold Pledge in the Event of Non-Payment
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success. A man lent another man money and pledged gold with him. He said to him, "If I do not repay the amount, you will take the gold in place of the money." Is this permissible?
Answer:
No, you do not take it. It is permissible for him to pledge gold with you, but his saying "you will take the gold" is not allowed. Rather, the gold is sold, the gold is sold and the debt is paid from it, and if anything remains, it is returned to the owner of the gold. It is not confiscated. Yes.
He says: Honorable Shaykh, may Allah grant you success. A man lent another man money and pledged gold with him. He said to him, "If I do not repay the amount, you will take the gold in place of the money." Is this permissible?
Answer:
No, you do not take it. It is permissible for him to pledge gold with you, but his saying "you will take the gold" is not allowed. Rather, the gold is sold, the gold is sold and the debt is paid from it, and if anything remains, it is returned to the owner of the gold. It is not confiscated. Yes.
Source
الفوزان -أشرطة- شرح زاد المستقنع مع الأسئلة - 054-تكملة الرهن - الضمان - الحوالة - 16-8-23 هـ — archive.org (1:13:54)
The Arabic text is a machine transcription of the audio recording.