What is the legal consequence when one object is pledged (mortgaged) to two creditors simultaneously?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 1 · Bab 1

Open in Qurani

Primary text

When an item (*ayn*) is pledged to two individuals, half of it is pledged to each for their respective debt. If one creditor's debt is settled, that half of the pledged item is released from the pledge. This is because the contract with two parties is treated as two separate contracts, meaning the pledgor effectively pledged half to each creditor individually. If the pledgor seeks to partition the pledged item with the creditor and take back his share, this is mandatory if the item is divisible without detriment, such as measured grains or weights. The obligation is based on the structure being analogous to two independent pledges.

Supporting text

If the pledged item is one whose division causes harm (detriment), partition is not incumbent. In such a case, half remains pledged to the creditor, and the other half becomes a deposit (*wadi'ah*) under the creditor's possession.