Interest with Non-Jews: Difference between revisions
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→Selling Debt
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==Selling Debt== | ==Selling Debt== | ||
===Non-Jew Selling | ===Non-Jew Selling Jew's Debt=== | ||
#If a Jew owed a non-Jew capital and interest, that non-Jew can sell that debt to another Jew. If the non-Jew collects the interest it is permitted for the Jew to accept it from the non-Jew. If the non-Jew was never paid by the Jewish borrowed, second Jew who bought this debt shouldn't collect the interest from the first Jew.<ref>Rashba responsa 1:764 cited by Darkei Moshe 168:6, Bedek Habayit 168:27, Rama 168:10 and Knesset Hagedola (Bet Yosef 168:44).</ref> | |||
# It isn't considered actual interest if the non-Jew merely transfers the collection of the loan to a Jew, however, if he actually sells it to him then it is considered as he is the new lender and it is actual interest to collect it.<ref>Taz 168:12. See Darkei Teshuva 168:38 who discusses whether this would constitute a Biblical or rabbinic prohibition. Nekudat Hakesef (on Taz 168:12) argues that if the transaction is only effective in non-Jewish law and not in halacha, it isn't a problem of interest. Chelkat Binyamin 66:10 s.v. vhaakum p. 313 questions this Shach based on CM 66:25 that clearly implies that any acquisition of a debt that is recognized by non-Jewish law is also accepted by Jewish law.</ref> | |||
# It is only problematic for a Jew to buy the Jewish debt from the non-Jew if the interest didn't yet accrue. However, if the interest already accrued and the Jewish borrower owes the non-Jew all of the capital and interest, the non-Jew can sell to the second Jew this loan to collect since it is a sale and not an interest loan at this point.<ref>Taz 168:12. Even though the Nekudat Hakesef on Taz 168:12 is strict, the Chelkat Binyamin 168:93 writes that one can be lenient on this question.</ref> | |||
# | ===Non-Jew Selling Non-Jew's Debt=== | ||
#A Jew lent a non-Jew with interest upon a security deposit of the non-Jew. Then the non-Jew sold the security deposit to another Jew and he was told to pay the debt to the first Jew and collect the security deposit. This transaction is totally permitted since the loan was made between the Jew and non-Jew and then there was a sale of the non-Jewish debt to a Jew.<ref>Rosh responsa 108:25, Shulchan Aruch 168:12</ref> | |||
#However, if the Jew who bought the debt, didn't pay off the debt immediately in order to redeem the deposit and only paid it after some time, thereby accruing a further interest charge upon the non-Jewish lender, the Jew lender may force the non-Jew to pay that interest charge even if the non-Jew in turn will force the Jewish buyer to pay him for that interest charge. But the Jewish buyer may not pay the interest to the Jewish lender because that would paying interest.<ref>Rosh responsa 108:25, Shulchan Aruch 168:12</ref> | |||
===Jew Selling | ===Jew Selling Non-Jew's Debt=== | ||
#If one Jew lent money to a non-Jew with interest he can then sell that loan to another Jew. He should stipulate that this is a complete sale of the loan and they will no longer have any claims upon each other. Thereby the buyer becomes the new lender to the non-Jew and can collect interest.<ref>Shulchan Aruch 168:18. When there is no security deposit, the Shach 168:62 explains that the mechanism isn't exactly a sale since one can't really sell the debt to another Jew. Rather one is forgiving the non-Jew from paying him back. Then the non-Jew can pay the second Jew as he is "considered" according to their intention to be the new lender. In Shach 168:63 he clarifies that he doesn't need to inform the non-Jew of that which he forgave. Netivot Shalom 168:18:9 explains that even though the non-Jew will be paying the second Jew in error he can collect it. Shach 168:63 is in disagreement with the Bach who thinks that it is necessary to alert the non-Jew. See Chavot Daat 168:41 who endorses another approach; he explains that this transaction is a sale with respect to non-Jews and purely forgiving a loan with respect to Jews. Therefore, he concludes that the first Jew may not go and reacquire the loan from the non-Jew that he forgave. However, it seems Chelkat Binyamin p. 313 would challenge this from C.M. 66:25.</ref> When there is a security deposit from the non-Jew that would have to be transferred to the second Jew with the same stipulation that it is a complete sale and they have no claims upon each other.<ref>Shulchan Aruch Y.D. 168:18</ref> According to Ashkenazim it isn't necessary to make such a clear stipulation since it is assumed that this is the stipulation.<ref>Rama 168:18 following the Mordechai and Rosh teshuva</ref> | |||
#If one Jew lent money to a non-Jew with interest he can then sell that loan to another Jew | |||
#A Jew who lent to a non-Jew with interest can sell the non-Jew's loan from a certain date going forward. The first Jew would collect the interest until that date and the second from that date and on.<ref>Tur 168:18</ref> | #A Jew who lent to a non-Jew with interest can sell the non-Jew's loan from a certain date going forward. The first Jew would collect the interest until that date and the second from that date and on.<ref>Tur 168:18</ref> | ||
#A Jew who lent a non-Jew for a certain percent he can sell that loan at a lower percent. For example, if the first Jew lent a non-Jew $100 for 10% a year and then resold that debt to another Jew for 5% a year.<ref>Rama 168:18, Chelkat Binyamin 168:204</ref> | #A Jew who lent a non-Jew for a certain percent he can sell that loan at a lower percent. For example, if the first Jew lent a non-Jew $100 for 10% a year and then resold that debt to another Jew for 5% a year.<ref>Rama 168:18, Chelkat Binyamin 168:204</ref> | ||
