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Chapter 66:4-6
Investment Contracts

4. However, it is forbidden for the recipient to buy the investor's share of the profits at a predetermined price, which he will be required to give him regardless of the outcome of the investment. Rather, the recipient must be granted the right to choose himself.

5. When the investment was made for a particular time and the funds remained in the possession of the recipient beyond the time when repayment was due, he must give the investor a share of the profits for the additional period as well. It is logical to assume that the funds remained in this possession under the original terms. Nevertheless, [to avoid any difficulty,] it is preferable to stipulate in the investment contract that should the funds remain in the recipient's possession after the date when payment is due, the terms of the agreement remain in effect.

6. The following is a suggested text for a heter iska agreement: I, the undersigned, acknowledge that I received 100 gold pieces from Reuven Hormitz of Ungvar under the terms of an iska agreement for half a year from the date mentioned below. I have obligated myself to purchase any type of merchandise which appears to me likely to reap a profit. This money will take precedence over my own.

Any profit which G-d will grant me from this merchandise will be divided - half going to me and half to the said Reuven. Similarly, any loss, heaven forbid, will be divided equally between us.

I obligate myself to pay the said Reuven the principal and his half of the profits immediately upon conclusion of the half-year period beginning on the date mentioned below. My word will not be accepted should I claim that the investment suffered a loss, unless it is supported by the testimony of two trustworthy witnesses. Similarly, concerning the profit, my word will be accepted only when supported by an oath.

Nevertheless, we agree to the following stipulation: Should I desire to give him ten gold pieces as his share of the profits, he shall have no further claim against me and the remainder of the profits belong to me alone. This applies even if tit may be proven that there was substantial profit.

All the laws accepting the statements of the possessor of this contract [i.e., the investor] will apply even after the date when payment is due. Until the money is returned, the terms of this agreement will continue to be in effect. I acknowledge receipt of a wage for my efforts.
Ungvar, Shevat 28, 5631 Shimeon Eisenstein
Signed in our presence, the witnesses
Levi Blaustein
Yehudoh Heuchberger

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