Q&A: Any concern about interest in this agreement will be handled according to a bank's heter iska
Originally published:
This is an English translation (via GPT-5.4). Read the original Hebrew version.
Any concern about interest in this agreement will be handled according to a bank's heter iska
Question
I previously consulted a rabbi, and he said that when drafting an agreement, you can include a clause stating that any concern about interest in this agreement will be handled according to a bank's heter iska, for example, Bank Mizrahi's.
What does the Rabbi think about making broad use of such a clause in any transaction, so that one can avoid concerns about interest?
Is there any drawback to this method?
Answer
Not likely.
A heter iska is not just a word or a magic formula. You are supposed to actually structure it as an iska, and that has halakhic definitions.
It seems he meant a general heter iska; see here:
יש ללחוץ כדי לגשת אל %D7%94%D7%99%D7%AA%D7%A8-%D7%A2%D7%99%D7%A1%D7%A7%D7%90-%D7%9B%D7%9C%D7%9C%D7%99-%D7%94%D7%A1%D7%91%D7%A8.pdf