Is the guarantor's liability removed if the pledgee oversteps his authority concerning the collateral while it is in his possession?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
If the collateral is in the pledgee's possession and he exercises undue authority (ta'addi) over it, even if he subsequently corrects that wrongful action, the liability (Dhaman) is not removed. Similarly, if he travels with the collateral and then returns it, the liability remains.
Supporting text
The underlying reason for the persistence of liability is that the pledgee's trust (isti'man) has been revoked by the act of wrongful use or travel, and this corruption of the condition of trust, having occurred while the collateral remained in his possession, is not remedied by merely ceasing the prohibited action.