KOLLEL CHOSHEN MISHPOT of OHIO
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HETER ISKA DOCUMENTS
HETER ISKA DOCUMENTS
Do I need a Heter Iska if there is no Ribbis (Interest payment) activity in my line of work?
Chances are that if you are involved in business you most definitely do. Even more so for mortgages, investments, partnerships, and any other financial occupation. Details are provided below.
The Heter 'Iska principle is based upon the borrower and lender agreeing to be partners in a business venture, whereby one partner invests money and the other uses his entrepreneurial skills to manage the venture. The investor-partner can thereby earn "profit" attributable to his portion of the joint business venture, and the sharing of such profit by the manager-partner would not constitute payment of interest upon a loan.
Two great resource sites for Halachic Documents are shtaros.com and heteriska.org
KCM thanks Rabbi Ari Marburger for sharing certain Iska contracts.
HETER ISKA KLALI
HETER ISKA KLALI
The proper way to go about it is to draft a Heter Iska specific to the venture at hand (See below for specific iska contracts). However, since this is not always possible, Poskim allow one to draft a general Heter Iska to serve as an umbrella of sorts. It should be posted conspicuously, and referenced in documents.
Download the Kollel Choshen Mishpot Heter Iska Klali by clicking here.
A suggested donation of $10 to the Kollel is encouraged. Please click here to donate.
HETER ISKA CHATZI MILVEH CHATZI PIKADON
HETER ISKA CHATZI MILVEH CHATZI PIKADON
This Iska is the most common, used when the returns are similar to a partnership such as up to 15%. For greater returns use the Kulo Pikadon. Witnesses are not required though one may add them at the end.A Kinyan (Sudar) is also not required,though recommended.
An Iska allows a loan to be restructured as a partnership in which there is an investing partner (the lender) and a managing partner (the borrower). The interest paid to the lender is restructured as a "fee" which the managing partner pays the investing partner so that he not be required to take an oath when providing an accounting of his expenditures.There managing partner must also receive a fee for his services as the active partner. This is done by giving a dollar to him at the time of signing, or by offering a percentage of the profits (such as in this iska).
Download the Heter Iska Chatzi Milveh Chatzi Pikadon by clicking here.
A suggested donation of $10 to the Kollel is encouraged. Please click here to donate.
HETER ISKA KULO PIKADON
HETER ISKA KULO PIKADON
For greater returns use this Kulo Pikadon Iska. Witnesses are not required though one may add them at the end.A Kinyan is also not required, though it is recommended.
An Iska allows a loan to be restructured as a partnership in which there is an investing partner (the lender) and a managing partner (the borrower). The interest paid to the lender is restructured as a "fee" which the managing partner pays the investing partner so that he not be required to take an oath when providing an accounting of his expenditures.There managing partner must also receive a fee for his services as the active partner. This is done by giving a dollar to him at the time of signing, or by offering a percentage of the profits (such as in this iska).
Download the KCM Iska Kulo Pikadon by clicking here.
A suggested donation of $10 to the Kollel is encouraged. Please click here to donate.