The mortgage contract (rahn) stands as one of the most significant and well-established contracts in both Islamic jurisprudence and contemporary law. While it shares certain features with other contracts, rahn possesses unique characteristics concerning its validity and enforceability. In 2023, the Iranian legislature introduced a new legal instrument, the collateral agreement, under Article 7 of the Law on Financing Production and Infrastructure. This development has generated conceptual and legal tensions with the traditional mortgage contract.
This paper aims to clarify the fundamental concepts underlying both the rahn and the newly introduced collateral agreement, identify their practical applications, and explore their legal relationship from the perspective of Islamic jurisprudence. Through an analysis of diverse scholarly views, the study reevaluates the mortgage contract in light of the new legislation, seeking a coherent legal and jurisprudential resolution to emerging conflicts.
The findings indicate that embracing customary interpretations of two essential elements, a tangible object (ayn) and delivery (qabd), which are core to a valid rahn, may help resolve inconsistencies. Furthermore, a secondary theoretical framework, termed here the doctrine of specification, is proposed. This approach suggests that when traditional mortgage requirements (such as tangibility and delivery) cannot be met, the collateral agreement serves as the preferable instrument, particularly in cases like pledging usufruct, while the traditional rahn continues to apply within its established scope.