“That would be sufficient, since this expresses clear sincerity in the agreement,” explained Rabbi Dayan. “Alternatively, the investor and recipient can make a kinyan sudar that the investment will now be in accordance with the rules of heter iska. Some recommend doing both, drafting a heter iska and making a kinyan.” (Dagul M’revava Y.D. 177:19; Bris Yehuda 35:5)
“Does this work retroactively?” asked Ezra. “What about the two months that passed?”
“Restructuring the loan as an iska agreement only affects it for the future,” concluded Rabbi Dayan, “but it does not allow taking ribbis for the previous time.” (Bris Yehuda 40:23)
“Do you have a copy of a heter iska?” asked Ezra.
“I’ll be happy to e-mail you one,” said Rabbi Dayan. “Just give me your address.”
Ezra gave Rabbi Dayan his e-mail address. “Thank you,” he said. “I’ll be sure to take care of it promptly.”
About the Author: Rabbi Meir Orlian is a faculty member of the Business Halacha Institute, headed by HaRav Chaim Kohn, a noted dayan. To receive BHI’s free newsletter, Business Weekly, send an e-mail to firstname.lastname@example.org. For questions regarding business halacha issues, or to bring a BHI lecturer to your business or shul, call the confidential hotline at 877-845-8455 or e-mail email@example.com.
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