Interest with Non-Jews: Difference between revisions
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#This is true as long as the lender already collected the interest. However, if he has a collateral of the borrower or a legal document that entitles him to collect, he can collect after making an oath. If he responds that he didn’t take any interest or doesn’t know if he took any interest, he is believed only if he takes an oath to that effect. This is true as long as the lender already collected the interest, has a collateral of the borrower, or have a legal document that entitles him to collect. However, in absence of that and the lender hasn’t yet collected if the borrower claims that he doesn’t owe the money due to interest he is believed and doesn’t have to pay.<Ref>Shulchan Aruch and Rama Y.D. 168:25</ref> | #This is true as long as the lender already collected the interest. However, if he has a collateral of the borrower or a legal document that entitles him to collect, he can collect after making an oath. If he responds that he didn’t take any interest or doesn’t know if he took any interest, he is believed only if he takes an oath to that effect. This is true as long as the lender already collected the interest, has a collateral of the borrower, or have a legal document that entitles him to collect. However, in absence of that and the lender hasn’t yet collected if the borrower claims that he doesn’t owe the money due to interest he is believed and doesn’t have to pay.<Ref>Shulchan Aruch and Rama Y.D. 168:25</ref> | ||
#If the borrower claims that his lender charged him interest and he should return it, if the lender responds that it was done in a permissible way he is believed without any oath. Some say that it is necessary to specify how it was done permissibly.<ref>Taz 168:36</ref> This is true as long as the lender already collected the interest. However, if he has a collateral of the borrower or a legal document that entitles him to collect, he can collect after making an oath. If he responds that he didn’t take any interest or doesn’t know if he took any interest, he is believed only if he takes an oath to that effect. This is true as long as the lender already collected the interest, has a collateral of the borrower, or have a legal document that entitles him to collect. However, in absence of that and the lender hasn’t yet collected if the borrower claims that he doesn’t owe the money due to interest he is believed and doesn’t have to pay.<Ref>Shulchan Aruch and Rama Y.D. 168:25</ref> | #If the borrower claims that his lender charged him interest and he should return it, if the lender responds that it was done in a permissible way he is believed without any oath. Some say that it is necessary to specify how it was done permissibly.<ref>Taz 168:36</ref> This is true as long as the lender already collected the interest. However, if he has a collateral of the borrower or a legal document that entitles him to collect, he can collect after making an oath. If he responds that he didn’t take any interest or doesn’t know if he took any interest, he is believed only if he takes an oath to that effect. This is true as long as the lender already collected the interest, has a collateral of the borrower, or have a legal document that entitles him to collect. However, in absence of that and the lender hasn’t yet collected if the borrower claims that he doesn’t owe the money due to interest he is believed and doesn’t have to pay.<Ref>Shulchan Aruch and Rama Y.D. 168:25</ref> | ||
==Guarantor== | |||
# If a Jew takes an interest loan from a non-Jew it is generally permitted for a Jew to be his guarantor. It would be forbidden for a Jew to be his guarantor if they allowed the lender to collect from the guarantor before collecting from the borrower. However, nowadays it is customary that the lender doesn't ask the guarantor unless he first asks the borrower.<ref>Gemara Bava Metsia 71b, Shulchan Aruch and Rama Y.D. 170:1</ref> | |||
# After the fact, if a Jew was a guarantor for another Jew for an interest loan from a non-Jew when it was specified that the lender would automatically claim the money from the guarantor first, which is forbidden to arrange, any interest that the guarantor paid needs to be returned. However, if it was set up such that the lender could choose to collect from the borrower or the guarantor first, which is also forbidden to arrange, however, after the fact, the money doesn't need to be returned to the guarantor.<ref>Shulchan Aruch and Rama Y.D. 170:1, Taz 170:1</ref> | |||
# It is permitted to pay a guarantor to be a guarantor.<ref>Taz 170:3, Nekudat Hakesef 170:2</ref> Some question this if the payment seems to take in account the risk that the guarantor assumed in the case he would actually have to pay and only be repaid by the borrower at a later date.<ref>Chelkat Binyamin Biurim 170:1 p. 388 s.v. hari</ref> | |||
==Resources== | ==Resources== | ||
