Hi. My company A borrows money from another company B. Company B is a shareholder in Company A. Both companies are owned by Jews.
Company B refuse to sign a heter iska, not out of principle, but rather just a reluctance to commit in writing. It is very hard for me to avoid borrowing from Company B so I was wondering if I can structure something or do something or perhaps just write something in an email that would avoid ribis without requiring them to sign anything?
Answer:
Ideally, the heter iska should be put in writing. Even if not on a seperate document a clause could be put in the loan document that everything is being done through means of a heter iska. In a case of great need even an oral agreement would suffice for a heter iska, see Kitzur Shulchan Aruch 66:7.
In any event it is crucial that both parties understand the nature and mechanics of the heter iska i order for it to have validity.
