Abu Dawud

Benefits and Issues:
Benefit: This narration is weak in its chain of transmission.
And the truth is that if something taken on loan (ariyah) is lost, its guarantee (daman) must be given.

Explanation:
1:
From this hadith, it is understood that a borrowed item (ariyah) remains obligatory to be returned by the borrower until it is given back.
Whether the guarantee (daman) of the borrowed item is upon the borrower or not,
there are three opinions regarding this:
The first opinion is that in every situation, he is its guarantor, whether the condition of guarantee was stipulated or not.
This is the view of Ibn Abbas,
Zayd ibn Ali,
Ata,
Ahmad,
Ishaq, and Imam Shafi'i rahimahumullah.
The second opinion is that if the condition of guarantee was not stipulated, then its responsibility will not be upon him.
The third opinion is that even with the condition, guarantee is not required as long as there is no betrayal. This hadith supports the first opinion.

Note:
(Qatadah and Hasan al-Basri are both mudallis,
and the narration is with 'an'anah,
therefore this chain is weak.)

Benefits and Issues:
The mentioned narration is weak in its chain of transmission, but the fact remains true that the return of a loan, a trust (amanah), and something borrowed (ariyah) is obligatory. The evidences for this are found in the Noble Qur’an and other authentic ahadith, for example:

The statement of Allah, the Exalted:
﴿وَالَّذِیْنَ ھُمْ لِاَمٰنٰتِھِمْ وَعَھْدِھِمْ رَاعُوْنَ﴾ (Al-Mu’minun 23:8)
“And those who are watchful of their trusts and their covenants.” (They are the successful believers.)

And see (Sunan Ibn Majah, Hadith: 2401)

Takhrij:
«أخرجه أبوداود، البيوع، باب في تضمين العارية، حديث:3561، والترمذي، البيوع، حديث:1266، وابن ماجه، الصدقات، حديث:2400، وأحمد:5 /8، 13، والنسائي في الكبرٰي:3 /411، حديث:5783.* قتادة عنعن.»©

Explanation:
➊ The aforementioned narration is weak in its chain of transmission; however, it is a fact that the return of a loan, a trust (amanah), and something borrowed (ariyah) is obligatory. The evidences for this are found in the Noble Qur’an and other authentic ahadith. For example, Allah the Exalted says: ﴿ وَالَّذِیْنَ ھُمْ لِاَمٰنٰتِھِمْ وَعَھْدِھِمْ رَاعُوْنَ ﴾ (Al-Mu’minun 23:8) “And those who are watchful of their trusts and their covenants (they are the successful believers).”

➋ Upon whom is the guarantee and responsibility for something taken on loan? Is it upon the one who borrows it (the borrower) or not? There are three opinions regarding this: The first opinion is that in all cases, the guarantee and responsibility is upon the one who borrows it, whether this condition was stipulated or not. This is the view of Ibn Abbas radi Allahu anhuma, Zayd ibn Ali, Ata’, Ahmad, Ishaq, and Imam Shafi’i rahimahumullah.

The second opinion is that if the condition of guarantee and responsibility was not stipulated, then he is not liable for it, as will be mentioned ahead in the narration of Ya’la radi Allahu anhu.

The third opinion is that even if the condition was stipulated, he will not be liable, provided that he does not commit treachery.