HETER ISKA (חצי מלוה חצי פקדון)
1.  Partnership

The undersigned Parties hereby obligate themselves and affirm in writing that (“Borrower”)                                                   has received                                                             HeterIska Coin from (“Lender”)                                                     . In exchange, the Borrower hereby assigns to the Lender a share in all permissible investments, businesses, and real estate that the Borrower owns. This investment shall be owned jointly by the Borrower and Lender. The Borrower is obligated to manage the investment in the manner that he/She believes will generate the maximum profits.
 

2. Profits and Losses

(a) Any profits (including the rental value of the use of any property), capital gains, or losses arising from this investment shall be shared equally between the Lender and the Borrower. However, the Borrower shall be paid a management fee of one dollar.
(b) Any claim regarding the number of profits generated by this investment shall be verified under solemn oath, administered by an Orthodox Jewish Court of Law.
(c) Any claim of loss must be verified through the testimony of two qualified witnesses before an Orthodox Jewish Court of Law. Nevertheless, to the extent necessary by Halacha to avoid violating any of the laws of Ribbis, Bais Din may accept alternate verifications.
(d) It is agreed that if the Borrower pays to the Lender the amount equal to an annual return of                                     plus any other payments or benefits called for by any other agreements executed between the parties, as payment for the profits of this Iska, then the Borrower will not be required to make an oath. Additional profits, if any, shall be the sole property of the Borrower. Said payment shall not void the original assignment to the investor, but is rather the Borrower’s purchase of the Investing Partner’s share. This payment reflects a final settlement that includes the management fee.

3. Miscellaneous

(a) The remaining balance of this Iska shall be returned by . In the event it is not returned by that date, the monies shall be considered reinvested Al Pi Heter Iska.
(b) Any profits, or payments called for by Section 2(d), that are due under the terms of this Iska, shall be paid monthly.
(c) Additional documents including a promissory note, mortgage, and guarantee, have been executed by the parties. Said documents contain additional terms and conditions, which shall be interpreted in a manner consistent with the Laws of Ribbis and this Heter Iska. Any mention of a loan, interest, points, or other similar terms are for legal purposes only and are intended to mean this Iska and the payments called for by Section 2(d). Any liens or security interest granted are intended to secure the obligations of this Iska only. To the extent necessary by Halacha, this agreement shall supersede any other agreement between the parties in regards to these funds.
(d) Any payments made that are not justified by this Iska agreement, such as prepaid ‘interest’, points, or other fees, shall reduce the principal balance of this Iska. However, the payments made pursuant to section 2(d) above shall remain equal to the amounts described in the promissory note and/or the agreement between the Parties.

4. Dispute Resolution

All disputes that may arise regarding or associated with this document shall be resolved and established exclusively by binding arbitration at the Rabbinical Court of                                          or its designee, in accordance with the terms and procedures delineated in the arbitration agreements of Rabbinical Court. Judgment rendered by the aforesaid authority may be entered in any court having jurisdiction thereof. This agreement shall follow the guidelines of Heter Iska as explained in Sefer Bris Yehudah. This Agreement is intended to be, and is, binding, consistent with the binding nature of all agreements, documents, obligations, and acquisitions that are properly effected in an Orthodox Jewish Court of Law in accordance with the laws and rules established by Rabbinical authorities. The Parties specifically acknowledge that this Heter Iska is a bona fide enforceable agreement between the parties, and is not intended merely as a religious compliance document. A proper Kinyan Suddar was executed to create this partnership. This is all valid and in good standing.

We hereby affix our signatures on this ____th day of 202....

Signature of Lender                                          Signature of Borrower                                             Signature of Guarantor