Must the custodian obtain a new authorization from the pledgor to sell the pledge after the debt matures if the authorization was previously given?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 4 · Bab 1

Open in Qurani

Primary text

If the debt matures and neither party has revoked the authority, the custodian must not sell the pledge until he seeks permission from the pledgee, because the sale concerns the pledgee's right, and thus requires his consent. It is not necessary to renew the authorization from the pledgor, according to the apparent statement of Ahmad, because the initial authorization suffices, similar to agency in other rights, unless the situation changes.

Supporting text

Al-Qadi mentioned an alternative opinion requiring a renewed authorization because the pledgor might have a different interest in the debt being settled by someone else. The former view is preferable, as the initial permission is sufficient unless the circumstances change, and the underlying interest is irrelevant compared to the explicit permission.