[Avodah] heter iska

[Eli Turkel]

<<A number of years ago, someone tried to get out of paying interest on a loan
based on the terms of the heter iska agreement. The bank claimed it was just a
religious trick to avoid ribis, but had no legal effect. The courts in Israel
sided with the bank. Rav Elyashiv holds that if the courts could void a
perfectly sound contract on the basis of 'religious purposes', then all the
hetter iskas are no good, unless worded in a way the would close this
loophole.>>

Based on this case the heter iska for all Israeli banks have been rewritten.
Heard a lecture once from the expert who explained how they managed to write
a contract that was halachically valid but would still expose the
banks to almost
zero chances of losing the loan

-- 
Eli Turkel