Is a pledge valid if a non-Muslim (Dhimmi) borrows money from a Muslim and pledges wine as collateral?

Primary text

The pledge is invalid if a Dhimmi borrows money from a Muslim and pledges wine as collateral, regardless of whether the collateral is placed in the custody of a Dhimmi or another person. If the pledgor, or his Dhimmi representative, sells the wine, the lender must accept the price offered, or else be forced to either accept the proceeds or absolve the debt. This is because when non-Muslims engage in invalid contracts among themselves concerning exchanges, those transactions are treated as valid ones. Umar (may Allah be pleased with him) ruled concerning non-Muslims who possessed wine: 'Allow them to sell it, and take from its proceeds.'