Is the hypothecation (Rahn) valid if the mortgaged property is already in the possession of the mortgagee as a loan (A'riyah), deposit (Wadi'ah), or wrongfully seized property (Ghasb)?

Primary text

The hypothecation is valid if the mortgaged item is already in the possession of the mortgagee, such as a loan, deposit, or wrongfully seized property. This is permissible because the owner possesses a right over it, and it can be considered possessed, similar to when it is already in the mortgagee's hands. The apparent view of Ahmad is that the hypothecation becomes binding immediately upon the contract, without needing an additional action. This is because possession is established and established possession suffices, as demonstrated when a custodian denies a deposit, causing it to become guaranteed without any new action, or when the denial ceases and the item returns to being a deposit without a new event.