Heter Iska - Revision history

YitzchakSultan1: /* Rav Moshe Shternbuch (Kulo Pikadon) */

2025-07-06T16:15:02Z

Rav Moshe Shternbuch (Kulo Pikadon)

← Older revision		Revision as of 16:15, 6 July 2025
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	# The advantage of the ''kulo pikadon heter iska'' is that it is possible to use it for a higher rate of return. For example, if a person wants returns of 20%, for the Chachmat Adam's ''heter iska'' this would presuppose that it is reasonable to make 40% in that industry. Since that is very unlikely it is better to use a ''kulo pikadon'', in which it is only necessary to suppose that 20% is reasonable in that industry, which is much more reasonable.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref> Another advantage is that halachically it is certainly not considered a loan on a Torah level.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24), Kitzur Dinei Ribbit (Introduction)</ref>		# The advantage of the ''kulo pikadon heter iska'' is that it is possible to use it for a higher rate of return. For example, if a person wants returns of 20%, for the Chachmat Adam's ''heter iska'' this would presuppose that it is reasonable to make 40% in that industry. Since that is very unlikely it is better to use a ''kulo pikadon'', in which it is only necessary to suppose that 20% is reasonable in that industry, which is much more reasonable.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref> Another advantage is that halachically it is certainly not considered a loan on a Torah level.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24), Kitzur Dinei Ribbit (Introduction)</ref>
	# Rav Shternbuch popularized and advocated for this type of ''heter iska.''<ref>[https://www.hebrewbooks.org/pdfpager.aspx?req=19931&st=&pgnum=48 Rav Moshe Shternbuch (Kitzur Dinei Ribbit 13:5)] writes that a person should use a kulo pikadon heter iska for the banks who charge a high interest rate, such that when doubled isn't reasonable that a person would make when invested.</ref> This is also known as the Bnei Brak heter iska.		# Rav Shternbuch popularized and advocated for this type of ''heter iska.''<ref>[https://www.hebrewbooks.org/pdfpager.aspx?req=19931&st=&pgnum=48 Rav Moshe Shternbuch (Kitzur Dinei Ribbit 13:5)] writes that a person should use a kulo pikadon heter iska for the banks who charge a high interest rate, such that when doubled isn't reasonable that a person would make when invested.</ref> This is also known as the Bnei Brak heter iska.
	# Some poskim argue that one shouldn't use this ''heter iska''.<ref>Brit Yehuda ch. 40 fnt. 2 writes that the gedolim of previous generations didn't endorse a complete pikadon heter iska since it isn't based on Chazal's institutions and is more of a harama.</ref> Some prefer this when a high rate of return is picked.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref>		# Some poskim argue that one shouldn't use this ''heter iska''.<ref>Brit Yehuda ch. 40 fnt. 2 writes that the gedolim of previous generations didn't endorse a complete pikadon heter iska since it isn't based on Chazal's institutions and is more of a harama. Rav Shlomo Zalman Auerbach (Minchat Shlomo 1:27 at the end) noted a problem with the contemporary world we live in a world where some people use the palga milveh heter iska and others use the kulo pikadon heter iska. The kulo pikadon heter iska sets a percent of expected return based on what is considered reasonable for that industry and clients are willing to accept the agreement knowing that is possible for them to make that much profit and still it is worthwhile for them. However, once that's an option, using a palga milveh heter iska is problematic. In that heter iska the percent of expected return needs to be doubled in order for the investor to get the amount he wants returned for his money. The only reason the investee is accepting that extremely high rate of return is because of the half loan that he is simultaneously accepting with the palga milveh heter iska. The mere acceptance of such a high rate for the pikadon because of the half loan is itself interest. The palga milveh iska of Chazal and old heter iska's used return rates that were reasonable to make from the half loan part, but if the number used needs to be doubled compared to kulo pikadon to accommodate a palga milveh heter iska that is noticeably problematic. Ultimately, Rav Shlomo Zalman concludes that we shouldn't undermine the contemporary heter iska even though it is questionable.</ref> Some prefer this when a high rate of return is picked.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref>
	# Since a ''kulo pikadon'' arrangement is similar to a loan, the regular rules of a iska applies such that: it is necessary to pay the investee for his efforts investing the money, it is forbidden to fix a rate of return even if there are losses, it is forbidden to charge for returns before the investee worked, and the investor may not benefit from the investee.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref>		# Since a ''kulo pikadon'' arrangement is similar to a loan, the regular rules of a iska applies such that: it is necessary to pay the investee for his efforts investing the money, it is forbidden to fix a rate of return even if there are losses, it is forbidden to charge for returns before the investee worked, and the investor may not benefit from the investee.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 24)</ref>

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	=== ''Heter Iska Klali'' ===		=== ''Heter Iska Klali'' ===

	# Rav Azriel Meir Eiger wrote that every Jew before they start to go into business should write a ''heter iska klali.'' That is, they should write a document that states that all loans or transactions that involve ribbit should follow the procedures of the ''heter iska'' so that they are permitted. Then this document should be given to a bet din. The idea of this institution was that if every Jew did it, it would solve all problems of ribbit for everyone. However, many rabbis disagreed. One major issue raised was if only party had signed a ''heter iska'' and the other did not. In that case, most rabbis held that the ''heter iska klali'' of only one of the parties was ineffective to permit taking interest.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 25)</ref>		# Rav Azriel Meir Eiger wrote that every Jew before they start to go into business should write a ''heter iska klali.'' That is, they should write a document that states that all loans or transactions that involve ribbit should follow the procedures of the ''heter iska'' so that they are permitted. Then this document should be given to a bet din. The idea of this institution was that if every Jew did it, it would solve all problems of ribbit for everyone. However, many rabbis disagreed. One major issue raised was if only party had signed a ''heter iska'' and the other did not. In that case, most rabbis held that the ''heter iska klali'' of only one of the parties was ineffective to permit taking interest.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 25), Minchat Yitzchak 1:20, 4:18</ref>
	# However, there were some poskim who held that the ''heter iska klali'' did not help even if both parties had signed the ''heter iska klali''.<ref>Rav Aharon Kotler (Mishnat Rebbe Aharon 1:20)</ref> In summary, this institution is not widely practiced today.		# However, there were some poskim who held that the ''heter iska klali'' did not help even if both parties had signed the ''heter iska klali''.<ref>Rav Aharon Kotler (Mishnat Rebbe Aharon 1:20)</ref> In summary, this institution is not widely practiced today.

YitzchakSultan1: /* Conditions of the Heter Iska */

2025-07-06T15:58:46Z

Conditions of the Heter Iska

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YitzchakSultan1: /* Requiring Witnesses */

2025-07-06T15:55:41Z

Requiring Witnesses

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YitzchakSultan1: /* Rivash */

2025-07-06T15:45:33Z

Rivash

← Older revision		Revision as of 15:45, 6 July 2025
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	# Rivash<ref>Rivash 335</ref> allows selling an item to be delivered at some later date for advanced funds today. It is also stipulated that if the item is not delivered by a certain time, a certain high amount must be paid and the item does not need to be delivered any more. This is like a one-time late fee, which Rivash allows in this circumstance where it was structured as a sale and not a loan.		# Rivash<ref>Rivash 335</ref> allows selling an item to be delivered at some later date for advanced funds today. It is also stipulated that if the item is not delivered by a certain time, a certain high amount must be paid and the item does not need to be delivered any more. This is like a one-time late fee, which Rivash allows in this circumstance where it was structured as a sale and not a loan.
	# Even though it seems that Rashba would disagree with this solution, Shulchan Aruch accepts this solution.<ref>Shulchan Aruch Y.D. 177:18</ref> Practically, this solution is not used today because it is possible for the investee to just deliver the item and not pay the high amount. Therefore, most funders don't want to use this solution without guaranteed returns.		# Even though it seems that Rashba would disagree with this solution, Shulchan Aruch accepts this solution.<ref>Shulchan Aruch Y.D. 177:18</ref> Practically, this solution is not used today because it is possible for the investee to just deliver the item and not pay the high amount. Therefore, most funders don't want to use this solution without guaranteed returns.
	# Another solution for ribbit that Rivash<ref>Rivash responsa 305, 464</ref> approved is the minhag of Barcelona. In Barcelona, they used to sell their house and then rent it from the ~~investee~~. This enabled the seller to get the money he needed and pay it back in regular installments to the ~~investee~~. However, since it was a complete sale, the house remained in the possession of the ~~investee~~ and the ~~investee~~ did not have the right to force the seller to sell it back to him at any point.		# Another solution for ribbit that Rivash<ref>Rivash responsa 305, 464</ref> approved is the minhag of Barcelona. In Barcelona, they used to sell their house and then rent it from the buyer. This enabled the seller to get the money he needed and pay it back in regular installments to the buyer. However, since it was a complete sale, the house remained in the possession of the buyer and the buyer did not have the right to force the seller to sell it back to him at any point.

	=== Maharam Rotenburg ===		=== Maharam Rotenburg ===

YitzchakSultan1: /* Is Using a Heter Iska Permitted Initially? */

2025-07-06T15:44:43Z

Is Using a Heter Iska Permitted Initially?

YitzchakSultan1 at 15:42, 6 July 2025

2025-07-06T15:42:34Z

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YitzchakSultan1: /* Paying to Avoid The Oath */

2025-06-30T22:27:47Z

Paying to Avoid The Oath

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YitzchakSultan1: /* Alternative Methods of Verification */

2025-06-30T22:07:12Z

Alternative Methods of Verification

← Older revision		Revision as of 22:07, 30 June 2025
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	=== Alternative Methods of Verification ===		=== Alternative Methods of Verification ===

	# Some poskim write that it is completely unreasonable to require the borrower to produce witnesses who observed every action of the borrower for the duration of the loan and know with certainty that he didn't make money with the iska funds~~. That nearly impossible to have witnesses who observe him every second of the day for every day~~. If they didn't observe him for a moment, even if it was just to get to the restroom, it is possible that the borrower made money in that break when they weren't watching. Obviously, that is unreasonable to require. Rather, it is understood that it is sufficient to produce witnesses who can verify that there weren't losses based on observing the company's records. That technically isn't a first-hand observation of their total earnings, as it is possible some gains weren't recorded, but nonetheless it is considered admissible testimony for verifying gains and losses of an iska.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 3)</ref>		# Some poskim write that it is completely unreasonable to require the borrower to produce witnesses who observed every action of the borrower for the duration of the loan and know with certainty that he didn't make money with the iska funds. If they didn't observe him for a moment, even if it was just to get to the restroom, it is possible that the borrower made money in that break when they weren't watching. Obviously, that is unreasonable to require. Rather, it is understood that it is sufficient to produce witnesses who can verify that there weren't losses based on observing the company's records. That technically isn't a first-hand observation of their total earnings, as it is possible some gains weren't recorded, but nonetheless it is considered admissible testimony for verifying gains and losses of an iska.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 3)</ref>

	=== Paying to Avoid The Oath ===		=== Paying to Avoid The Oath ===

YitzchakSultan1: /* Why Is Any Rate of Return Permitted? */

2025-06-29T21:31:38Z

Why Is Any Rate of Return Permitted?

YitzchakSultan1 at 21:19, 29 June 2025

2025-06-29T21:19:30Z

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← Older revision		Revision as of 15:44, 6 July 2025
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	=== Is Using a ''Heter Iska'' Permitted Initially? ===		=== Is Using a ''Heter Iska'' Permitted Initially? ===
	# The overwhelming majority of ''poskim'' concur that a ''heter iska'' is a permissible option.<ref>Maaseh Rav n. 108 writes that the Gra disapproved of the heter iska altogether. See however Tosefet Maaseh Rav n. 28 which quotes Rav Chaim Volozhin as permitting it.</ref> Some poskim hold that it is only permitted, both for the funder as well as the ~~buyer~~, in extenuating circumstances where one of the parties needs it to make a living and cannot do without this.<ref>The Sma (Derech Aruka n. 22), who popularized the modern heter iska, introduced it by saying that it should only be used as an ad hoc leniency for people to have basic needs. Malveh Hashem 13:27 concludes that the heter iska should only be used in extenuating circumstances. Mishpatei Ribbit 28:2 agrees.</ref> Others hold it is totally permitted when done correctly.<ref>Chatom Sofer 4:48, Imrei Yosher 2:192, Brit Yehuda 40 fnt. 1, Horah Brurah (Kuntres Heter Iska ch. 2). Brit Yehuda concludes that someone who wants to be lenient can be and someone who wants to be strict will be blessed.</ref> Nonetheless, one should ensure not to use it at the expense of doing the ''chesed'' (kindness) of lending another Jew money without interest when that is possible.<ref>Chafetz Chaim in Ahavat Chesed (Gemilut Chesed 15) only complains that using the heter iska avoids lending money for free which is a chesed. Aseh Lecha Rav 1:60 (also printed in Or Torah 5732 Shevat siman 72) writes that the heter iska is permitted since it is for the purpose of business and only when a poor Jew asks for a loan a person may not use a heter iska and doing so would violate the basic principle of the halacha. Instead one should give them an interest free loan if one could. </ref>		# The overwhelming majority of ''poskim'' concur that a ''heter iska'' is a permissible option.<ref>Maaseh Rav n. 108 writes that the Gra disapproved of the heter iska altogether. See however Tosefet Maaseh Rav n. 28 which quotes Rav Chaim Volozhin as permitting it.</ref> Some poskim hold that it is only permitted, both for the funder as well as the investee, in extenuating circumstances where one of the parties needs it to make a living and cannot do without this.<ref>The Sma (Derech Aruka n. 22), who popularized the modern heter iska, introduced it by saying that it should only be used as an ad hoc leniency for people to have basic needs. Malveh Hashem 13:27 concludes that the heter iska should only be used in extenuating circumstances. Mishpatei Ribbit 28:2 agrees.</ref> Others hold it is totally permitted when done correctly.<ref>Chatom Sofer 4:48, Imrei Yosher 2:192, Brit Yehuda 40 fnt. 1, Horah Brurah (Kuntres Heter Iska ch. 2). Brit Yehuda concludes that someone who wants to be lenient can be and someone who wants to be strict will be blessed.</ref> Nonetheless, one should ensure not to use it at the expense of doing the ''chesed'' (kindness) of lending another Jew money without interest when that is possible.<ref>Chafetz Chaim in Ahavat Chesed (Gemilut Chesed 15) only complains that using the heter iska avoids lending money for free which is a chesed. Aseh Lecha Rav 1:60 (also printed in Or Torah 5732 Shevat siman 72) writes that the heter iska is permitted since it is for the purpose of business and only when a poor Jew asks for a loan a person may not use a heter iska and doing so would violate the basic principle of the halacha. Instead one should give them an interest free loan if one could. </ref>

	=== Is a ''Heter Iska'' Just a Charade? ===		=== Is a ''Heter Iska'' Just a Charade? ===
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	# If the iska specifies an investment in specified merchandise that the investee already owns, it is necessary to perform a ''kinyan sudar'' for the funder to acquire a portion of the merchandise.<ref>[https://hebrewbooks.org/pdfpager.aspx?req=49250&pgnum=5 Sma (Kuntres Ribbit, Ketzara n. 6)]</ref>		# If the iska specifies an investment in specified merchandise that the investee already owns, it is necessary to perform a ''kinyan sudar'' for the funder to acquire a portion of the merchandise.<ref>[https://hebrewbooks.org/pdfpager.aspx?req=49250&pgnum=5 Sma (Kuntres Ribbit, Ketzara n. 6)]</ref>
	# In every other case of ''heter iska'' it isn't absolutely necessary to do a ''kinyan sudar'' but it is advisable to do so.<ref>Shevet Halevi 9:173, Chelkat Binyamin (Kuntres Heter Iska n. 7). Horah Brurah (Kuntres Heter Iska siman 7) writes that if they did a kinyan they should include that in the shtar iska and if not they should erase that line. </ref>		# In every other case of ''heter iska'' it isn't absolutely necessary to do a ''kinyan sudar'' but it is advisable to do so.<ref>Shevet Halevi 9:173, Chelkat Binyamin (Kuntres Heter Iska n. 7). Horah Brurah (Kuntres Heter Iska siman 7) writes that if they did a kinyan they should include that in the shtar iska and if not they should erase that line. </ref>
	# The ''kinyan sudar'' is done by having the funder hand over his handkerchief, pen, or another functional utensil to the investee who then picks it up three tefachim. This symbolic act of transferring an item from the funder to the ~~buyer~~ indicates that the funder is buying merchandise or a portion of the investments of the investee.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 7)</ref> The investee should return the item to the funder afterwards. See [[Acquisition\|kinyan sudar]] page for more details.		# The ''kinyan sudar'' is done by having the funder hand over his handkerchief, pen, or another functional utensil to the investee who then picks it up three tefachim. This symbolic act of transferring an item from the funder to the investee indicates that the funder is buying merchandise or a portion of the investments of the investee.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 7)</ref> The investee should return the item to the funder afterwards. See [[Acquisition\|kinyan sudar]] page for more details.
	# Some opinions hold that the effective kinyan for a ''heter iska'' is the signing of the ''heter iska'' document. This is only effective if the investee understands what he doing when he is signing. If he doesn't realize that his signature is creating an acquisition to the funder that acquisition is null and void.<ref>Shulchan Aruch Harav (Ribbit n. 46), Chelkat Binyamin (Kuntres Heter Iska n. 5)</ref>		# Some opinions hold that the effective kinyan for a ''heter iska'' is the signing of the ''heter iska'' document. This is only effective if the investee understands what he doing when he is signing. If he doesn't realize that his signature is creating an acquisition to the funder that acquisition is null and void.<ref>Shulchan Aruch Harav (Ribbit n. 46), Chelkat Binyamin (Kuntres Heter Iska n. 5)</ref>

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	# Rivash<ref>Rivash 335</ref> allows selling an item to be delivered at some later date for advanced funds today. It is also stipulated that if the item is not delivered by a certain time, a certain high amount must be paid and the item does not need to be delivered any more. This is like a one-time late fee, which Rivash allows in this circumstance where it was structured as a sale and not a loan.		# Rivash<ref>Rivash 335</ref> allows selling an item to be delivered at some later date for advanced funds today. It is also stipulated that if the item is not delivered by a certain time, a certain high amount must be paid and the item does not need to be delivered any more. This is like a one-time late fee, which Rivash allows in this circumstance where it was structured as a sale and not a loan.
	# Even though it seems that Rashba would disagree with this solution, Shulchan Aruch accepts this solution.<ref>Shulchan Aruch Y.D. 177:18</ref> Practically, this solution is not used today because it is possible for the investee to just deliver the item and not pay the high amount. Therefore, most funders don't want to use this solution without guaranteed returns.		# Even though it seems that Rashba would disagree with this solution, Shulchan Aruch accepts this solution.<ref>Shulchan Aruch Y.D. 177:18</ref> Practically, this solution is not used today because it is possible for the investee to just deliver the item and not pay the high amount. Therefore, most funders don't want to use this solution without guaranteed returns.
	# Another solution for ribbit that Rivash<ref>Rivash responsa 305, 464</ref> approved is the minhag of Barcelona. In Barcelona, they used to sell their house and then rent it from the ~~buyer~~. This enabled the seller to get the money he needed and pay it back in regular installments to the ~~buyer~~. However, since it was a complete sale, the house remained in the possession of the ~~buyer~~ and the ~~buyer~~ did not have the right to force the seller to sell it back to him at any point.		# Another solution for ribbit that Rivash<ref>Rivash responsa 305, 464</ref> approved is the minhag of Barcelona. In Barcelona, they used to sell their house and then rent it from the investee. This enabled the seller to get the money he needed and pay it back in regular installments to the investee. However, since it was a complete sale, the house remained in the possession of the investee and the investee did not have the right to force the seller to sell it back to him at any point.

	=== Maharam Rotenburg ===		=== Maharam Rotenburg ===

← Older revision		Revision as of 21:31, 29 June 2025
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	=== Why Is Any Rate of Return Permitted? ===		=== Why Is Any Rate of Return Permitted? ===
	# <p class="indent">Charging a fixed rate of return for ~~a loan with a~~ ''~~heter~~ iska'' seems to be interest. Nonetheless, this fee is structured as a payment of the investee to avoid having to take the oath, and therefore is permitted. Since it is possible for the investee not to have to pay the fixed rate of return if he did not in fact profit by taking an oath it is not considered interest to pay the return even if he did not earn any profit.<ref>Taz 177:12 explains that it is only forbidden to fix a rate of return when this fixed rate is guaranteed even if the iska does not profit. However, if the rate of return is only paid from profits, then in effect it just caps the potential gains of the iska and does not involve interest at all. Shulchan Aruch Harav (Ribbit n. 41) and Chelkat Binyamin (Kuntres Heter Iska n. 2) agree.</ref> This structure is accepted as the minhag and commonly found in ''heter iska''’s.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 2)</ref> </p>		# <p class="indent">Charging a fixed rate of return for an ''iska'' seems to be interest. Nonetheless, this fee is structured as a payment of the investee to avoid having to take the oath, and therefore is permitted. Since it is possible for the investee not to have to pay the fixed rate of return if he did not in fact profit by taking an oath it is not considered interest to pay the return even if he did not earn any profit.<ref>Taz 177:12 explains that it is only forbidden to fix a rate of return when this fixed rate is guaranteed even if the iska does not profit. However, if the rate of return is only paid from profits, then in effect it just caps the potential gains of the iska and does not involve interest at all. Shulchan Aruch Harav (Ribbit n. 41) and Chelkat Binyamin (Kuntres Heter Iska n. 2) agree.</ref> This structure is accepted as the minhag and commonly found in ''heter iska''’s.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 2)</ref> </p>
	# <p class="indent">How much interest can you charge with a ''~~Heter~~ Iska''? None. You charge for profits and not interest. How much profit you can charge is based on what is considered reasonable. See above. </p>		# <p class="indent">How much interest can you charge with a ''heter Iska''? None. You charge for profits and not interest. How much profit you can charge is based on what is considered reasonable. See above. </p>

	=== Compounding Rate of Return ===		=== Compounding Rate of Return ===

	# Taz<ref>177:21</ref> writes that it is forbidden to ~~charge~~ a ~~return fee~~ on any cyclic basis, such as weekly, monthly, or yearly. The reason is that it appears to be an interest charge. Shach<ref>Nekudat Hakesef to Taz 177:21</ref> writes that we’re lenient. Many poskim write that the minhag is to be lenient,<ref>[https://www.hebrewbooks.org/pdfpager.aspx?req=19931&st=&pgnum=46 Rav Moshe Shternbuch (Kitzur Dinei Ribbit 12:6)] writes that the minhag today is like this Shach unlike the Taz.</ref> however, Shulchan Aruch Harav is stringent.<ref>Shulchan Aruch Harav (Ribbit n. 48)</ref>		# Taz<ref>177:21</ref> writes that it is forbidden to stipulate in a document that returns for profits are expected on any cyclic basis, such as weekly, monthly, or yearly. The reason is that it appears to be an interest charge. Shach<ref>Nekudat Hakesef to Taz 177:21</ref> writes that we’re lenient. Many poskim write that the minhag is to be lenient,<ref>[https://www.hebrewbooks.org/pdfpager.aspx?req=19931&st=&pgnum=46 Rav Moshe Shternbuch (Kitzur Dinei Ribbit 12:6)] writes that the minhag today is like this Shach unlike the Taz.</ref> however, Shulchan Aruch Harav is stringent.<ref>Shulchan Aruch Harav (Ribbit n. 48)</ref>
	# Chachmat Adam's ''heter iska'' actually ~~made the rate of~~ return determined on a weekly basis. In essence, the iska period was completed each Friday and a new iska was arranged the next week. It is possible to include all future iska agreements in one ''heter iska'' and some poskim think that this avoids the issue of the Taz.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 2)</ref>		# Chachmat Adam's ''heter iska'' actually stipulated a return for profits determined on a weekly basis. In essence, the iska period was completed each Friday and a new iska was arranged the next week. It is possible to include all future iska agreements in one ''heter iska'' and some poskim think that this avoids the issue of the Taz.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 2)</ref>

	== Verification and Return Clauses ==		== Verification and Return Clauses ==
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	=== Requiring Witnesses ===		=== Requiring Witnesses ===

	# The investee is not trusted to say that he lost money unless he proves it with two witnesses. This is a condition that was added in the Maharam's ''heter iska'' and was ~~accepted~~ in later ''heter iska''<nowiki/> documents such as that of the Chachmat Adam.<ref>Nachalat Shiva ch. 40</ref>		# The investee is not trusted to say that he lost money unless he proves it with two witnesses. This is a condition that was added in the Maharam's ''heter iska'' and was adopted in later ''heter iska'' <nowiki/>documents such as that of the Chachmat Adam.<ref>Nachalat Shiva ch. 40</ref>
	# Even though some poskim advised removing this proviso because it ~~causes~~ the investee to return the capital to the investor even though he actually lost money ~~because he was unable to find valid witnesses~~,<ref>Shlah (Chullin p. 84a)</ref> that opinion was not accepted. Nonetheless, some contemporary poskim recommend removing this clause ~~because nowadays there are many people who would give false testimony based on the claims of the parties or based on assumptions and evaluations~~.<ref>Rav Moshe Feinstein (Igrot Moshe YD 2:62)</ref>		# Even though some poskim advised removing this proviso because if the investee were unable to find valid witnesses it would cause the investee to return the capital to the investor even though he actually lost money,<ref>Shlah (Chullin p. 84a)</ref> that opinion was not accepted. Nonetheless, some contemporary poskim recommend removing this clause.<ref>Rav Moshe Feinstein (Igrot Moshe YD 2:62)</ref>
	## Many ''heter iska'' documents today still include this clause. For example, the [https://bethdin.sfo3.digitaloceanspaces.com/2015/07/ShtarIska.pdf heter iska of the bet din of America]<ref>Retrieved June 13, 2025</ref> includes it.		## Many ''heter iska'' documents today still include this clause. For example, the [https://bethdin.sfo3.digitaloceanspaces.com/2015/07/ShtarIska.pdf heter iska of the bet din of America]<ref>Retrieved June 13, 2025</ref> includes it.
	# It is possible to specify that only specific trustworthy witnesses, such as the local rabbi and shaliach tzibbur, are to be believed as long as it is possible that they're know about the financial dealings of the iska. Even though it is unlikely that they will know about the iska and testify since it is possible it is permissible. However, in ''heter iska'' documents today this specification is not employed.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 3)</ref>		# It is possible to specify that only specific trustworthy witnesses, such as the local rabbi and shaliach tzibbur, are to be believed as long as it is possible that they're know about the financial dealings of the iska. Even though it is unlikely that they will know about the iska and testify since it is possible it is permissible. However, in ''heter iska'' documents today this specification is not employed.<ref>Chelkat Binyamin (Kuntres Heter Iska n. 3)</ref>