Instructions

The most important Halacha about executing a Heter Iska is to understand what you are doing! A brief explanation can be found by clicking here

A few pointers:

• Both Parties should sign and have copies of the Heter Iska.
• If the Heter Iska requires a one-dollar payment to the Recipient, the payment must be actually paid.
• The Heter Iska should be executed before the funds are advanced.
• The Recipient/borrower must have investments for the Heter Iska to be effective (a personal residence that is expected to appreciate in value may qualify)
• The rate of return on the Heter Iska must be in line with the expected return on the underlying investment (for a kulo pekadon form- if the classic chatzi milva form is used, the rate must be less than half of the investment's expected return)