Torah.org Home Subscribe Services Support Us
 
Shulchan-Aruch

Part II: Yoreh De'ah

Chapter 13b - USURY cont'd

If a borrower gives a lender property as security for a loan the lender may keep any income produced by the property provided the amount of the loan is reduced, even if not by the full amount of the income; but such an arrangement is forbidden if the borrower guarantees that the lender will not suffer any losses because of the property (172:1, and see 3-4,6). On transactions in which the lender rents the property back from the borrower see 164:1-4;172:2.

It is permissible to buy someone's debt for less than its face value and then to collect the full value provided the buyer is at risk if the debt cannot be collected; see 173:4-5. On other types of transactions that involve payments or benefits to a lender see 177:8-10,13-17.

It is permissible to lend someone money or goods for business purposes and to share in the resulting profits provided the borrower receives some payment for his efforts in addition to his share in the profits (167:1; see 173:15-16, 18-19 and 177:1-7,12,20-40).

A loan of goods may result in payment of interest if the goods increase in value and the borrower returns their current value; but such loans are permitted if they involve only a small quantity of goods, or if the borrower has access to goods of the same type, or if the goods have an official market price, or if the monetary value of the goods is specified at the time of the loan (162:1-5;163:1-3; see 173:6,17).

Advance payment for purchased goods may violate the prohibition against interest if the price of the goods goes up; it is permitted only if the goods are nearly ready for delivery or have an official market price or if the purchaser is at risk of losing his investment (see 173:7-14;175:1-7). When a violation has occurred the sale is void unless the goods have already been transferred (175:8).

It is forbidden to charge a significantly higher price for goods in return for a delay in payment (173:1, and see 177:1); but once a sale has been made it is permissible to accept a lower price in return for immediate payment (173:3), to charge a higher price for immediate delivery (173:2), or to pay a penalty for failure to deliver (see 177:18). Charging a rental fee is permitted even if the renter is responsible for the value of the rented item in case of loss; see 176:1-5. On making a rental price or a salary depend on how soon payment is made see 176:6-8. If a sale is not final but the price has been paid, under some circumstances the price is regarded as a loan; see 174.

Shulchan Aruch, Copyright (c) 2000 ProjectGenesis, Inc.

 






ARTICLES ON KI SEITZEI AND ELUL / ROSH HASHANAH:

View Complete List

The Custom of Eating Symbolic Foods
Rabbi Yehudah Prero - 5755

To Do The Impossible
Rabbi Label Lam - 5767

Our Own Akeidah
Rabbi Berel Wein - 5766

Frumster - Orthodox Jewish Dating

Are We listening?
Rabbi Yaakov Menken - 5762

Teshuva and Rebi Elazar ben Dordai
Rabbi Pinchas Winston - 5773

Close Only Counts In Horse-Shoes
Rabbi Yochanan Zweig - 5772

ArtScroll

Parshas Ki Seitzei
Shlomo Katz - 5769

Rosh HaShana - Of Creation and Our King
Rabbi Yehudah Prero - 5758

Of Men And Women
Rabbi Aron Tendler - 5764

> No One Will Do it For You
Rabbi Yaakov Menken - 5762

Relentless
Rabbi Pinchas Avruch - 5763

Doing A Mitzvah With Regard for Another's Feelings
Rabbi Yissocher Frand - 5763

Looking for a Chavrusah?

Everything Depends on Our Teshuvah
Rabbi Label Lam - 5773

Yefas Toar: Captivating Beauty
Rabbi Osher Chaim Levene - 5766

Yehi Ratzon - Text and Instructions
Rabbi Yehudah Prero - 5760

Dead Man Falling
Rabbi Mordechai Kamenetzky - 5759



Project Genesis

Torah.org Home


Torah Portion

Jewish Law

Ethics

Texts

Learn the Basics

Seasons

Features

TORAHAUDIO

Ask The Rabbi

Knowledge Base




Help

About Us

Contact Us



Free Book on Geulah!




Torah.org Home
Torah.org HomeCapalon.com Copyright Information