Is it valid for the mortgagor to instruct the mortgagee to increase the loan amount such that the existing collateral secures both the original debt and the additional amount?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
It is not permissible for the mortgagor to stipulate an increase in the debt secured by the existing collateral without re-establishing the mortgage contract for the combined amount. This view is held by Abu Hanifa and Muhammad, and is one position attributed to Al-Shafi'i. The rebuttal against the permissive view is that since mortgaging the already mortgaged item is invalid, increasing the secured debt in this manner without a new contract is also invalid, unlike increasing the collateral itself, which is a valid reinforcement (*istithaq*).
Supporting text
Malik, Abu Yusuf, Abu Thur, Al-Muzani, and Ibn Al-Mundhir permit this, analogizing it to adding a new collateral or the case where an injuring slave is ransomed, making the slave collateral for both the original amount and the ransom paid.