Pawning and Mortgaging: Ruling on Mortgaging the Same Collateral to Multiple Pawnbrokers

Practical Laws of Islam as per the teachings of Imam Khamenei

Pawning and Mortgaging: Ruling on Mortgaging the Same Collateral to Multiple Pawnbrokers

English:

Question #1676:

Can a mortgagor mortgage the collateral to another pawnbroker before the first one is terminated?

Answer #1676:

As long as the first contract is not terminated, the second mortgage is suspended without the permission of the first mortgagee and becomes valid only if he authorises it.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Pawning and Mortgaging