Interest with Non-Jews: Difference between revisions
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→Jew Selling Non-Jew's Debt
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#The Jew can resell the non-Jew's debt for a lower interest rate than the non-Jew is giving him.<ref>Rama 168:18</ref> | #The Jew can resell the non-Jew's debt for a lower interest rate than the non-Jew is giving him.<ref>Rama 168:18</ref> | ||
#It is permitted for the buyer of the debt to leave the non-Jew's security deposit in the hands of the original Jewish lender.<ref>Rama 168:18 clarifies that it is sufficient for the sale of the loan to be effective when the buyer pays for the loan even if he isn't transferred the loan document or the collateral and doesn't do another kinyan. It is evident in the Darkei Moshe 168:17 and Chavot Daat 168:37 that selling a non-Jew's debt is ineffective with merely paying for the debt, the loan document physically needs to be transferred. However, when a collateral is involved it is sufficient to pay for it. Chelkat Binyamin 168:214 clarifies that one should be explicit that one is selling the collateral wherever it is. Ideally, the Rama concludes, one should use a kinyan to sell the collateral and not rely on the payment alone. The Chelkat Binyamin 168:215 explains that meshicha or sudar are good forms of kinyan.</ref> The responsibility of the security deposit is now upon the second Jew but if they stipulated that the first Jew would have responsibility then he does.<ref>Bet Yosef 168:18 s.v. vkatuv, Rama 168:18, Chavot Daat 168:37. Shach 168:58 notes that in such a case it is necessary to do a formal sale of the loan in order for him to leave the security deposit with the first Jew. </ref> | #It is permitted for the buyer of the debt to leave the non-Jew's security deposit in the hands of the original Jewish lender.<ref>Rama 168:18 clarifies that it is sufficient for the sale of the loan to be effective when the buyer pays for the loan even if he isn't transferred the loan document or the collateral and doesn't do another kinyan. It is evident in the Darkei Moshe 168:17 and Chavot Daat 168:37 that selling a non-Jew's debt is ineffective with merely paying for the debt, the loan document physically needs to be transferred. However, when a collateral is involved it is sufficient to pay for it. Chelkat Binyamin 168:214 clarifies that one should be explicit that one is selling the collateral wherever it is. Ideally, the Rama concludes, one should use a kinyan to sell the collateral and not rely on the payment alone. The Chelkat Binyamin 168:215 explains that meshicha or sudar are good forms of kinyan.</ref> The responsibility of the security deposit is now upon the second Jew but if they stipulated that the first Jew would have responsibility then he does.<ref>Bet Yosef 168:18 s.v. vkatuv, Rama 168:18, Chavot Daat 168:37. Shach 168:58 notes that in such a case it is necessary to do a formal sale of the loan in order for him to leave the security deposit with the first Jew. </ref> | ||
#It is forbidden to say that one wants to borrow from another Jew with interest on or in exchange for a non-Jew’s collateral which was given to the first Jew because of | #It is forbidden to say that one wants to borrow from another Jew with interest on or in exchange for a non-Jew’s collateral which was given to the first Jew because of an interest loan,<ref>Rosh responsa 108:28 writes that if a Jew who lent to a non-Jew with interest asks another Jew to lend him money with interest on the collateral he received from the non-Jew that is considered taking interest. Tur and Shulchan Aruch Y.D. 168:19 codify the Rosh. What exactly is the issue with this formulation? The Shach 168:64 contends that as long as one says that one wants to borrow from another Jew with interest on a non-Jewish collateral we can’t reinterepert his words and since he said he wanted to borrow with interest that is how we view his transaction. However, if he wouldn’t explain the transaction at all, we would explain him to mean that he intended to buy it since we’d prefer to say he did something permitted. Chelkat Binyamin 168:236 sides with the Shach. He explains that there’s a fundamental difference between a sale and a loan. A sale is where the first Jew is completely removed from any dealings with the non-Jew and if he collects anything from the non-Jew he must give it to the second Jew. A loan is where the first Jew must pay the second Jew whether or not the non-Jew will pay. The Bach 168:26 disagrees and explains that there is a minhag to be lenient even if one says that one intends to borrow because we reinterpret it to mean to buy. Taz 168:28 seems to agree. The Bet Yosef and Taz imply that the reason for the Rosh isn’t because of his incriminating words but rather because of his motivation. If the Jewish lender would have borrowed on that collateral for the benefit of the non-Jew it wouldn’t be considered a Jewish loan. However, as long as the motivation is for the needs of the Jew we understand that transaction between the two Jews to be a loan and not a sale.</ref> in whatever way the collateral is transferred to the second Jew.<Ref>Shach 168:64 concludes that this issue of stating that one wants to borrow from a Jew with interest on the collateral of a non-Jew is only a problem if the first Jew owes the non-Jew's collateral such as if the non-Jew stated that it was his retroactively from the time of the loan if it goes unpaid, however, if he doesn't have that ownership and he transfers the collateral to the other Jew it is permitted. Chavot Daat 168:41 and Rabbi Akiva Eiger on Shach 168:64 disagree. Chelkat Binyamin Biurim 168:19 s.v. vamar p. 367 answers their question.</ref> | ||
==Managing Someone Else's Money== | ==Managing Someone Else's Money== | ||
