Heter Iska Agreement

Heter Iska Agreement

The Jewish Religion Act strictly prohibits the payment or obtaining of interest on loans granted between Jews. However, if funds are disbursed as part of a transaction, an agreement may be entered into where the supplier and recipient of those funds are considered equal partners. This partnership is based on the provision that, at the request of two trustworthy witnesses, each loss must be certified and all winnings must be verified by oath. All the resulting gains and losses are then distributed equally. However, in order to avoid these very strict requirements, the provider of the funds under this “Shtar Isko” agrees to give up its share in the profits instead of obtaining a fixed percentage of the pre-abundant money. This percentage is then considered a profit and not an interest on a loan. This Agreement comes into force when the recipient of the money executes a form as defined below. 5. The iska hetter must be fully filled. The investor and the recipient must sign below in the presence of a witness. The witness must be valid in accordance with the law of the State where the hetter iska is executed. There is one here The first page is the document, and the 2nd page are the Halachos who refer to Hetter Iska.

2. Before signing a mortgage or loan document, both parties (investor and beneficiary) must declare orally that their agreement complies with the conditions of the Iska hetter. The beneficiary manages the funds in the form of Pekadon Iska, regardless of an agreement called loan, interest or compound interest. The beneficiary is responsible for the theft or loss of these funds as legal guardian. Eighty-five percent of the profits belong to the investor, and five percent belong to the beneficiary, in exchange for his efforts in managing this Iska. While I was researching my issue, I found Beis Din from the American Iska agreement. At Latimer Lee, we have experience in managing all types of agreements involving a Heter Iska, and we are happy to arrange for all document designs to be verified by your rabbi or a rabbi whom we recommend (additional fees may be charged). 4. The investor must give the beneficiary $1.00 (in addition to the investment) as salary for his work.

This dollar is a salary – it is not returned and is not included in the amount of money indicated on the Iska hetter. 1. It is important that the instructions are followed in the correct order. If you do not follow the procedure correctly, the Iska hetter may become invalid. All this was done with a real confession and a Kinyan Suddar in front of a Bais Din Chashuv, in a way that is not asmachta, and not of the kind of Tofsay Shtara. All this was done with the most effective Kinyan in the most effective way. It is agreed that any doubts that may arise as to the interpretation of this document will be interpreted in a manner that will maintain this document, and not in a manner that would render it void….

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