Interest with Non-Jews: Difference between revisions

# If a Jew borrowed from a non-Jew with a collateral and then the non-Jew for his own purposes borrowed from another Jew with the same collateral it is permitted for the second Jew to collect interest from the non-Jew, even if the non-Jew will in turn force the first Jew to pay interest.<ref>Tur 168:20 quotes the Baal Haitur that if a Jew borrowed from a non-Jew with a collateral and now the non-Jew is borrowing from another Jew with the same collateral the second Jew may not accept the interest from the non-Jew since it is as though it is coming from the Jew. However, the Rosh Pesachim 2:10 and Rashba 3:229 disagree. Once the Jew borrows from the non-Jew it is completely permitted and if the non-Jew then borrows from another Jew that is disconnected. The Bet Yosef 168:20 cites the Ran b”m 71b s.v. veharamban and Baal Hatrumot 46:4:10 who side with the Baal Haitur. Yet, the Baal Hatrumot adds that if the non-Jew accepts responsibility for the loan he’s taking from the second Jew it is permitted. Shulchan Aruch 168:20 cites the Rosh and Rashba as the main opinion and the Baal Haitur as some say.</ref>

===Jewish Money Deposited with Non-Jew Used for Jewish Loan===

#If a Jew deposits money with a non-Jew it is permitted for another Jew to borrow from that non-Jew with interest as long as the non-Jew took responsibility to the first Jew like a borrower.<ref>The Tosefta b”m 5:8 states that if a Jew deposited money with a non-Jew if the non-Jew took responsibility for it then he can lend it to another Jew with interest. Although the Baal Hatrumot 1:46:2:6 quotes someone who held we don’t follow the Tosefta, in 7:1 he writes that we do follow the Tosefta. Also, the Rosh b”m 5:56 and Tur and Shulchan Aruch Y.D. 168:21 codify it. Bet Yosef 168:21 isn’t certain what is the definition of the amount of responsibility that the non-Jew must accept in order to permit this. Does it mean that the non-Jew has responsibility like a watchman or does he need to take responsibility like a borrower who even if it is lost is obligated? He quotes the Baal Hatrumot assumed it was the latter. Shach 168:68 and Taz 168:31 agree.</ref>

===Non-Jewish Money Deposited with Non-Jew Used for Jewish Loan===

#Money deposited by a non-Jew with a Jew, if the Jew accepts responsibility for them as a lona, he may not then lend them with interest. However, if he didn’t accept responsibility if he lent them to another Jew he didn’t take interest. Nonetheless, it is generally forbidden to do so since it is suspicious (marit ayin) and appears like taking interest from another Jew.<ref>The Tosefta b”m 5:8 states that if a non-Jew deposited money with a Jew he can lend it to another Jew with interest if the first Jew doesn’t have responsibility for the loan. The Bet Yosef 168:22 quotes the Baal Hatrumot 7:1 who explains that if the Jew has responsibility for the loan if it isn’t paid up that is a problem, however, if he merely accepts responsibility to pay while it is in his domain that is permissible since if something happens he can pay and there was no loan at all. Shach 168:69 and Taz 168:33 agree. Nonetheless, even in the first case, the Tur 168:23 writes that there is a problem because people will suspect that the first Jew is lending his own money to another Jew with interest.</ref>