Byrd Butts on Nostr: Many in America https://www.kfikosher.org/kosher-bank-directory Heter Iska agreement ...
Many in America https://www.kfikosher.org/kosher-bank-directory
Heter Iska agreement can be entered into in conjunction with the primary loan documents (for instance, mortgage loan documentation) to redefine and convert the underlying loan (e.g., the mortgage loan) into a unique investment structure, which will ultimately produce the same economic results as the underlying loan for the lender and the borrower. However, since the transaction has been transformed into an “investment” in the mortgaged property, the lender is transformed into an investor and the borrower into a so-called “investment manager,” thereby allowing the interest to be recharacterized into a return on investment, which is allowed under Jewish law.
Heter Iska agreement can be entered into in conjunction with the primary loan documents (for instance, mortgage loan documentation) to redefine and convert the underlying loan (e.g., the mortgage loan) into a unique investment structure, which will ultimately produce the same economic results as the underlying loan for the lender and the borrower. However, since the transaction has been transformed into an “investment” in the mortgaged property, the lender is transformed into an investor and the borrower into a so-called “investment manager,” thereby allowing the interest to be recharacterized into a return on investment, which is allowed under Jewish law.