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Taking Interest: Difference between revisions
From Halachipedia
→Returning Interest
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==Returning Interest== | ==Returning Interest== | ||
#A person who took interest that was in violation of Biblical ribbit must return the ribbit and if he doesn't the courts can extract it. Nonetheless the courts can force a person to fulfill his mitzvah to return the interest.<ref>Shulchan Aruch 161:5</ref> | ===Biblical Interest=== | ||
#A person who took interest that was in violation of Biblical ribbit must return the ribbit and if he doesn't the courts can extract it. Nonetheless the courts can force a person to fulfill his mitzvah to return the interest.<ref>Shulchan Aruch 161:5</ref> He must pay with cash and not items worth cash.<ref>Chelkat Binyamin (Biurim 161 s.v. ratza), Netivot Shalom 161:8:5</ref> | |||
# Children of the lender who collected interest don't need to return it unless their father did teshuva before he passed away and didn't get to return it and in such a case they should return any unique item that their father collected as interest.<ref>Shulchan Aruch 161:6</ref> | |||
# If a lender wants to do teshuva the lender should return the interest but the borrower shouldn't accept the interest in order not to prevent the lender from doing teshuva. That is only true if the majority of the lender's business and wealth is due to interest.<ref>Shulchan Aruch 161:7</ref> | |||
# A transaction about which there is a dispute if it is Biblical interest or rabbinic interest if the lender collected it he doesn't need to return it and if the borrower grabbed it back he doesn't need to return it.<ref>Shach 161:4. See Avnei Nezer YD Brit Avraham who questions it.</ref> | |||
===Rabbinic Interest=== | |||
#A person who took rabbinic interest is obligated to return it but the courts can't force him to do so.<ref>Shulchan Aruch Y.D. 161:2</ref> | #A person who took rabbinic interest is obligated to return it but the courts can't force him to do so.<ref>Shulchan Aruch Y.D. 161:2</ref> | ||
#A borrower who paid rabbinic interest can't force the lender to return it and if he grabs it out of the hands or domain of the lender he must return it.<ref>Shulchan Aruch 161:3</ref> | #A borrower who paid rabbinic interest can't force the lender to return it and if he grabs it out of the hands or domain of the lender he must return it.<ref>Shulchan Aruch 161:3</ref> | ||
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# A lender who collected interest from lending a commodity and getting that same type of item in return (''Seah Bseah'') violated rabbinic interest and should return it but the courts can't extract it from him.<ref>Shulchan Aruch 161:1</ref> | # A lender who collected interest from lending a commodity and getting that same type of item in return (''Seah Bseah'') violated rabbinic interest and should return it but the courts can't extract it from him.<ref>Shulchan Aruch 161:1</ref> | ||
#A person who took gifts to give a loan before the loan or a gift after the loan was repaid doesn't need to return it.<ref>Based on the Rashba's teshuva, Rama 161:2 writes that ribbit before and after the loan isn't as serious as other cases of rabbinic interest and doesn't need to be returned.</ref> | #A person who took gifts to give a loan before the loan or a gift after the loan was repaid doesn't need to return it.<ref>Based on the Rashba's teshuva, Rama 161:2 writes that ribbit before and after the loan isn't as serious as other cases of rabbinic interest and doesn't need to be returned.</ref> | ||
# | ===Returning Items=== | ||
# If a | # If was given a bunch of objects at a discount for the interest payment he must return all of the items he collected as interest or he needs to pay the fair price of the objects he collected. For example, if the borrower owed a dollar of interest and he gave the lender five pounds of wheat when the fair price was four pounds for a dollar, the lender must repay the borrower either all of the five pounds of wheat or the fair price of the five pounds of wheat which is a dollar and a quarter.<ref>Rava in Gemara Bava Metsia 65a, Shulchan Aruch Y.D. 161:8. The Netivot Shalom 161:8:1 writes based on the Ramban that the reason for Rava is that since the fifth pound of wheat was acquired as a result and a benefit of the interest payment it is included in the interest and must be returned. | ||
# A | * The reason that the lender has the right to return the wheat thereby invalidating the sale is because he can claim that had he known that he wouldn't have been able to keep the interest he never would have paid a dollar and a quarter for the five pounds of wheat. This is the reason of the Mishna Lmelech (Malveh Vloveh 8:15 s.v. vda) cited by Chelkat Binyamin 161:67. However, Chelkat Binyamin in fact points out that the Nemukei Yosef b"m 39a clearly holds otherwise. The sale is valid automatically and the lender can only invalidate the sale if both the borrower and lender agree. The Netivot Shalom 161:8 5 makes the same point and in fact argues that the Shulchan Aruch also means this in line with the Nemukei Yosef (also considering that the Bet Yosef cited the Nemukei Yosef without any argument or disagreement).</ref> | ||
# If a borrower gave a unique item for interest the lender must return it.<ref>Shulchan Aruch 161:9</ref> | |||
# If the borrower stipulated to give a certain amount of interest and then gives an extra gift as well at the time of the payment that gift is considered rabbinic interest and the bet din can't force its return. Nonetheless, the lender has an obligation to pay it.<ref>Netivot Shalom 161:8:2 writes that since there's no connection between the interest and the gift and so the gift is only rabbinic interest and it isn't similar to Rava in Bava Metsia 65a.</ref> | |||
# If a person stipulated to give an item as interest that item must be returned and not its value.<ref>Pitchei Teshuva 161:9 citing the Mishna Lmelech (Malveh Vloveh 8:15)</ref> | |||
===Rental=== | |||
# If a person rented a house or any other item of the borrower for cheaper he needs to return the difference between the discounted price and the full value because that discount was Biblical interest that he collected.<ref>Shulchan Aruch 161:5</ref> | |||
# If a person rented a house or another item of the borrower and overpaid, but the amount that he paid was all money that he gained from stipulated interest, he must return the full amount that was stipulated.<ref>Shulchan Aurch 161:10</ref> | |||
===Document with Interest=== | |||
# If a person has a loan document stating that a person owes capital and interest the document should be ripped up.<ref>Rama 161:11</ref> | |||
# A loan document with interest can be used to collect the capital and not the interest.<ref>Shulchan Aruch 161:11</ref> | |||
# If the document included the capital and the interest and didn't specify what part of the obligation was capital and what was interest he can't use that document to collect anything.<ref>Shulchan Aruch 161:11</ref> | |||
==Borrowing Items== | ==Borrowing Items== | ||
# It is forbidden to lend an item to get back the same type of item. This is called Seah B'seah. For example, lending out a 5 pound bag of flour to get back another bag of flour is forbidden.<ref>Bava Metsia 75a</ref> | # It is forbidden to lend an item to get back the same type of item. This is called Seah B'seah. For example, lending out a 5 pound bag of flour to get back another bag of flour is forbidden.<ref>Bava Metsia 75a</ref> | ||
