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“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[19])

“Does this work retroactively?” asked Ezra. “What about the two months that passed?”

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“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.”


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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 [email protected]. 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 protected].