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    -- Iska C: Standard Iska Calling for Monthly Payments

Iska C: Standard Iska Calling for Monthly Payments

Iska Contract

I, the undersigned, have received the sum of $________ from ________________ (hereafter referred to as the "Investing Partner"), to be used for business purposes. I obligate myself to utilize these funds in a manner which I believe will generate profits. Any profits realized or losses sustained shall be shared equally between the Investing Partner and myself.

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 these funds shall be verified under solemn oath, before and under conditions acceptable to, an Orthodox Jewish court of law.

The amounts due hereunder, if any, to the investor shall be payable monthly, on the first of every secular month. If these profits are being paid in a timely manner, the return of the sum invested herewith shall not be required until ___________________.1 If there are no profits during any given month, the investor shall be notified of this immediately.

It is specifically agreed that if I pay, to the Investing Partner, the monthly sum of ______________ as payment for his share of the profits which are generated, then I will not be required to make an oath, nor will I be required to notify the investing partner regarding the profits which were realized. Additional profits, if any, shall be my sole property.

The Investing Partner shall be entitled to the presumption of credibility in any claim regarding compliance of the terms herein. This provision shall survive the termination of this Iska. In the event that the monthly payment or notice which is required herein is not given, the presumption shall be that the moneys invested have continued to generate a profit equal to or greater than the amount required by the monthly payment.

I have received one dollar from the Investing Partner as payment for my services during the term of our partnership.2

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 ________________.3 Judgement rendered by the aforesaid authority may be entered in any court having jurisdiction thereof.

Dated ______________

Signature of the Recipient ________________________

Signature of the Investor ________________________


1. Enter the date on which the payment of principal is due, or the words "on demand."

2. The Investing Partner pays one dollar to the managing partner, in addition to the funds which are invested.

3. 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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