Ribit - partnership with a non-Jew

Hello my question is the following: I started working at a law firm and our biggest client is an investment fund that makes personal loans. The fund is managed by two Jews and one non-Jew who are partners. The money they manage comes from both Jews and non-Jews, but mostly from non-Jews. I would like to know if in the case that this fund lends money with interest to Jews, I can participate as a lawyer by setting up the structure for this business or is it prohibited by the Ribit law. Thank you very much and I look forward to your response.

Thank you for your question.

It would be permitted for you to work with this company, as long as they operate according to Halacha. This means that there has to be a written agreement between the Jewish and non-Jewish owners of the company that all the prohibited profits derived from Ribis would be to the Non-Jew alone.

This is an example of such a written agreement from Harav Fried Shelita:

                                                                                              -Example -

Partnership agreement with a non-Jew

This partnership agreement is made between the following individuals:

Between side: ________________________ who will be named as of now as “side A”

And side: ____________________________ who will be named as of now as “side B”

1. “Side A” possesses a fifty percent (50%) ownership in the company, and “Side B” possesses a fifty percent (50%) ownership in the company.
2. It is hereby agreed that the ownership of "Side A" in the company, shall be effective only for the permissible dealings according to Jewish law. The ownership of “side B” in the company is for the dealings that are prohibited according to Jewish law such as receiving Ribis (interest) from Jewish borrowers.
   Since it is difficult to estimate the exact value of the profit that is gained from Ribis, it is therefore agreed upon by the partners in a way of compromise that the value of the profit that is gained from Ribis shall constitute twenty percent (20%) of the total company value. This twenty percent (20%) shall be under the exclusive ownership of "Side B". Additionally, "Side B" shall hold exclusive ownership of an additional thirty percent (30%) of the company's value derived from its permissible earnings.

If you have any further queries, please feel free to ask.

Wishing you lots of success.

 

 

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