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    -- Iska E: Kulo Pikadon Form - Where Money is Advanced for Personal Use

Iska E: Kulo Pikadon Form - Where Money is Advanced for Personal Use

We have seen that there are cases where a kulo pikadon form is desirable*. This form appears below and is suitable for use in the same cases as Heter Iska B ('personal use').

PLEASE NOTE: If the parties wish to have witnesses attest to the Heter Iska, the final portion of Iska A may be added at the end of the contract.

Iska Contract

I, the undersigned, have received the sum of $________ from ________________ (hereafter referred to as the "Investing Partner"), for investment in an Iska partnership, subject to the following terms:

In exchange for the aforementioned sum, the Investing Partner shall aquire a share (in the value of the funds received) in any investment, real estate or business which I own. In the event that no such investments exist, the Investing Partner will aquire partnership (in the value of funds received) in any future investment which I shall make. The Investing Partner hereby appoints me as an agent to execute these investment(s), as I deem appropriate, on his behalf. These investment(s) shall be owned by the Investing Partner.

Any profits realized or losses sustained shall be allocated to the Investing Partner. However, five percent (5%) of the profits shall be retained by the undersigned for his services during the term of this Iska.

Any claim of loss must be verified through the testimony of two qualified witnesses in, and under conditions acceptable to, an Orthodox Jewish court of law. Any claim regarding the amount of profit generated by this investment (or investments) shall be verified under solemn oath, before and under conditions acceptable to, an Orthodox Jewish court of law.

It is agreed that if I return the above-mentioned principal to the Investing Partner, together with an additional __________________________ as payment for his share of the profits which are generated, then I will not be required to make any further payment nor will I be required to make an oath. I am obligated to make this payment on or before ______________. If payment is not made by this time, the terms of this Iska shall continue.

In the event of any conflict between the terms of this Iska agreement and the terms of any other agreement signed by the two parties in regard to these funds, the terms of this agreement shall prevail.

This agreement shall follow the guidelines of Heter Iska as explained in Sefer Bris Yehudah. It is agreed that any dispute which may arise in connection with this agreement shall be submitted before ________________.1 Judgement rendered by the aforesaid authority may be entered in any court having jurisdiction thereof.

Dated ______________

Signature of the Recipient ________________________

Signature of the Investor ________________________


* [Ed. note: As explained in Rabbi Reisman's sepher, "The Laws of Ribis."]

1. This part of the contract is optional.

Reprinted with permission of ArtScroll/Mesorah Publications, Ltd. from "The Laws of Ribbis: The Laws of Interest and their Application to Everyday Life and Business" by Rabbi Yisroel Reisman

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