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Shtar Iska A form of Heter Iska, which allows for the charging of interest-like fees among Jews in business transactions.
What is the Heter Iska clause?
The heter iska sets up an agreement between two parties as follows: Part of the money is not given as a loan, but rather as an investment with which the recipient acts only as an agent. Therefore, any profits from this part of the money rightfully belong to the investor.
What is a Shtar Iska?
Shtar Iska A form of Heter Iska, which allows for the charging of interest-like fees among Jews in business transactions.
What is Heter Iska in hebrew?
Heter iska translates literally as business permit. Its a term used in Jewish religious law that essentially means iska loophole. Without loans, commerce cant functionand without interest, lenders cant function.
Who are the lenders in Heter Iska?
The lender is considered the investor, while the borrower is the Recipient. Under the terms of the Iska, the investor and recipient share all profits and losses equally. However, the purpose of the Heter Iska is to minimize the lenders risk, and to allow the borrower to retain the bulk of the profits.
The lender is considered the investor, while the borrower is the Recipient. Under the terms of the Iska, the investor and recipient share all profits and losses equally. However, the purpose of the Heter Iska is to minimize the lenders risk, and to allow the borrower to retain the bulk of the profits.
What is the origin of Heter Iska?
Heter Iska (Exemption Contract) It was developed by Rabbis in order to structure business transactions to avoid the prohibition of ribis, the lending of money by a Jew to another Jew for interest.
What is the Heter Iska clause?
The heter iska sets up an agreement between two parties as follows: Part of the money is not given as a loan, but rather as an investment with which the recipient acts only as an agent. Therefore, any profits from this part of the money rightfully belong to the investor.
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