Security Deposit ( Al-Rahn ) Mortgage

“I once asked abu Ja’far (a.s.), about security deposit, mortgage and guarantor in transaction on credit. He (the Imam) said, ’It is not unlawful.”’

“I once asked him (the Imam) (a.s.), about the case of a man who bought something on credit with al-Rahn (security deposit). He (the Imam) said, ‘It is not unlawful.’”

“This is concerning my question before abu ‘Abd Allah (a.s.), about the case of a man who contracted for purchasing an animal or foodstuff in the form of advance payment with al-Rahn (security deposit). He (the Imam) said, ‘It is not unlawful to secure your asset.’”

“I once asked abu Ibrahim (a.s.), about the case of a man who had al-Rahn (security deposit) with him and did not know to whom it belonged. He (the Imam) said, ‘I do not like his selling it until the owner comes.’ I said, ‘He does not know who the owner is.’ He (the Imam) then asked, ‘Is there any increase or decrease in it?’ I then asked, ‘What happens if there is increase or decrease in it?’ He (the Imam) said, ‘If there is decrease, it is easier. He can sell it and complete the reduction from his own property. If there is increase in it, it is more difficult because he sells it and must keep the increase until its owner comes.’”

“This is concerning my question before abu ‘Abd Allah (a.s.), about the case of a man who held al-Rahn (security-deposit) for an unspecified time and his party disappeared; if he had a time limit within which he could sell al-Rahn (security deposit). He (the Imam) said, ‘No, until his party comes.’”

“This is concerning my question before abu ‘Abd Allah (a.s.), about al-Rahn (security deposit). He (the Imam) said, ‘If it is more than what mortgagee has provided and it is destroyed, the difference must be paid to the mortgager; but if it is less and is destroyed, the one who has the extra must pay the difference to the mortgagor, and if both sides are equal then there is nothing to dispute about.’”

“I once asked abu Ja‘far (a.s.), about the words of Ali (a.s.), about al-Rahn (security deposit and mortgage) ‘both sides return the extra’. He (the Imam) said, ‘Ali (a.s.), indeed would say it.’ I then asked, ‘How both sides return?’ He (the Imam) said, ‘If what is mortgaged is more than the amount the mortgage has provided and it is destroyed, the mortgagee returns the difference to mortgager; if it is not equal the mortgager returns the difference to the mortgagee.’ He (the Imam) said, ‘This is how Ali, Alayhi al-Salam, would say about animals and other goods.’”

“About al-Rahn (security deposit and mortgage), abu ‘Abd Allah, Alayhi al-Salam, has said, ‘If loss takes place on the side of mortgagee without willingly consuming it, he asks the mortgager to provide compensation for his loss; but if he consumes it then both sides exchange the difference to each other.’”

“I once asked abu Ibrahim, Alayhi al-Salam, about the case of a man who made an al-Rahn (security deposit and mortgage) deal which is for one hundred dirham with a value of three hundred dirham and it was consumed; if he had to pay two hundred dirham to the other party. He (the Imam) said, ‘Yes, because he has taken al-Rahn (security deposit) in which there is increase and loss.’ I then asked, ‘What happens if half is consumed?’ He (the Imam) said, ‘It is proportionate.’ I then asked, ‘Do they return to each other the extra?’ He (the Imam) said, ‘Yes, that it true.’”

“I once asked abu Ibrahim, Alayhi al-Salam, about the case of a man who mortgaged a slave and the house and they suffered loss; if it was compensated by a particular party. He (the Imam) said, ‘His master is responsible.’ He (the Imam) then said, ‘Suppose if someone is murdered who is responsible?’ I replied, ‘It is on the neck of the slave.’ He (the Imam) said, ‘Do you not consider that his property is not gone?’ He (the Imam) then said, ‘Consider, if his price was one hundred dinar and it increased up to two hundred dinars. To whom does it (the increase) belong?’ I replied, ‘It belongs to his master.’ He (the Imam) said, ‘In the same way it is on him just as it is for him.’”

“About the case of a man who takes mortgage from another man, then it suffers loss or is lost. He (the Imam), Alayhi al-Salam, has said, ‘He can demand what is for him from the other party.”

“I once asked abu Ibrahim, Alayhi al-Salam, about the case of a man who left a slave, or clothes, or jewelries, or goods of the household as al-Rahn (security deposit) with someone, then said to mortgagee, ‘You have permission to wear the clothes so wear them and benefit from the goods and use the services of the servant.’ He (the Imam) said, ‘It is lawful for him when he has made it lawful for him but I do not like if he did.’ I asked, ‘If one leaves a house as al-Rahn (security deposit) which has a certain amount of income. To whom such income belongs?’ He (the Imam) said, ‘It belongs to the owner of the house.’ I then said, ‘One has left his uncultivated land as al-Rahn (security deposit) saying to the party, “Farm it for yourself.’” He (the Imam) said, ‘This is not like that. He farms it for himself and it is lawful for him as he has made it lawful for him but he farms it with his own asset and establishes it.’”

“Abu ‘Abd Allah (a.s.), has said that ’Amir al-Mu’minin had issued a judgment that said, ‘Whoever leaves an income-producing al-Rahn (security deposit), such income is counted in favor of the owner of al-Rahn (security deposit) against what he owes.’”

Abu Ja‘far (a.s.), has said that ’Amir al-Mu’minin has said, ‘If one holds a piece of barren land as al-Rahn (security deposit) which has no fruits and he farms it and incurs expenses on it, he keeps accounts of whatever he has spent and his work; then counts the share of the land to compensate for his assets with which he holds the land as al-Rahn (security deposit) until he compensates his assets, then returns the land to its owner.’”

“This is concerning my question before abu ‘Abd Allah (a.s.), about the case of a man who left his slave-girl as al-Rahn (security deposit) with a people if it was lawful for him to do sexual intercourse with her. He (the Imam) said, ‘Those who hold her as al-Rahn (security deposit) will bar him.’ I then asked, ‘What happens if he gets a chance? He (the Imam) said, ‘Yes, I do not see it to be unlawful for him.’”

“This is concerning my question before abu ‘Abd Allah (a.s.), about the case of a man who held a stumper and camels as al-Rahn (security deposit) against his assets; if he could ride them. He (the Imam) said, ‘If he feeds them he can ride; but if the one who has left them as al-Rahn (security deposit) feeds them, then he cannot ride.’”

“About the case of a man, who borrows one hundred dinars and leaves as al-Rahn (security deposit) jewelries worth one hundred dinars, then comes to al-Rahn (security deposit) holder and asks him to lend him the gold which he has with him. Al-Rahn (security deposit) holder lends it to him and it is destroyed; if he owes anything to the man who has left al-Rahn (security deposit) with him. He (the Imam) said, ‘It is on the one who left al-Rahn (security deposit) because he is the one who destroyed it and al-Rahn (security deposit) holder does not owe anything, not even a grain.’”

“Abu ‘Abd Allah (a.s.), has said, ‘If you hold a slave or stumper as al-Rahn (security deposit) and they die; there is nothing upon you, but if the stumper is destroyed or the slave runs away you are responsible for it.’”

I once asked abu al-Hassan (a.s.), about the case of a man whose brother had died and left a box in which there were al-Rahn (security deposit) goods, of which certain ones had the name of the owner on them and others did not have any names on them and for how much they were left as al- Rahn (security deposit), and what do you say about that with an unknown owner. He (the Imam) said, ‘It is like his own property.’”

“I once asked abu Ja‘far (a.s.), about the case of a man who had left his slave-girl as al- Rahn (security deposit) with a people; if he could have sexual intercourse with her. He (the Imam) said, ‘Those who hold her as al-Rahn (security deposit) bar him from reaching her.’ I asked, ‘What happens if he gets a chance? He (the Imam) said, ‘Yes, I do not see it as unlawful.’”

“I once said to abu ‘Abd Allah (a.s.), ‘There is a man who owes to me a certain amount of dirhams and his house is as al-Rahn (security deposit) with me and I want to sell it. He (the Imam) said, ‘Do you, by Allah, have the intention to take the roof away from the top of his head?”’

“Once, abu ‘Abd Allah (a.s.), was asked about the case of a man to whom another man owed a certain amount of debts. He held al-Rahn (security deposit) if he could buy al-Rahn (security deposit). He (the Imam) said, ‘Yes, he can do so.’”