When Is It Permitted to Benefit the Lender: Difference between revisions
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When Is It Permitted to Benefit the Lender (view source)
Revision as of 21:24, 6 July 2020
, 6 July 2020→Paying for Fees
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===Paying for Fees=== | ===Paying for Fees=== | ||
# It is forbidden for the agent accepting the investment to do any favors or pay for any fees on behalf of the investment that benefits the investor unless it is customary in that business that the agent or seller would do that and not the investor.<ref>Shulchan Aruch Y.D. 177:21</ref> | # It is forbidden for the agent accepting the investment to do any favors or pay for any fees on behalf of the investment that benefits the investor unless it is customary in that business that the agent or seller would do that and not the investor.<ref>Shulchan Aruch Y.D. 177:21</ref> | ||
# It is forbidden for the borrower to pay for a loss than the lender incurred because the borrower didn't pay back on time. This includes a loss of profits<ref>Rashba 3:227 writes that it is forbidden to pay for the loss of profits of the lender, otherwise no ribbit would be forbidden.</ref> and a loss if he had to take out an interest loan from a non-Jew.<ref>Chelkat Binyamin 161:8. See Shevet Halevi 9:172 who forbids paying for lost profits but permits paying for interest payments the lender made to a non-Jew since that is considered like a damage he incurred because of the borrower.</ref> For example, if one Jew borrows another Jew's credit card and doesn't pay back on time if the credit card owner ends up paying the interest to the credit card company the borrower may not repay that interest to the lender.<ref>Laws of Interest 4:5 p. 79</ref> | |||
# It is permitted for the borrower to pay for the writing of the contract, even for a part investment which is also for the benefit of the lender, for the security of the loan, and for the fee of extracting the money from the bank if the lender wasn't also doing it for himself.<ref>Chelkat Binyamin 161:8</ref> | |||
# For example, if the lender is penalized by the bank for taking out his money early from an investment (such as a CD) in order to lend that money the borrower can pay for that fee.<ref>Chelkat Binyamin 161:8. Laws of Interest p. 82 fnt. 16 cites Rabbi J. David Bleich who argues.</ref> This applies specifically if he lost some of the capital or he already acquired interest and is now penalized, however, if he didn't yet acquire the interest the borrower may not pay for that loss.<ref>Laws of Interest 4:9 p. 81</ref> | |||
# A gamach which charges a fee for a loan in order to ensure the upkeep of the gamach is a question but some permit it, yet it is better to do so without stipulating that it be paid. Either way the fee shouldn't be dependent on the amount of the loan.<ref>Chelkat Binyamin 161:8</ref> | |||
# It is forbidden to pay the lender for his time and effort even if it meant he took off from work to arrange this.<ref>Laws of Interest 4:2, p. 79</ref> | |||
==Non-Financial Benefit== | ==Non-Financial Benefit== | ||
