General Heter Iska

By resolution adopted by the management of Merchant Refi LLC, including all branches and subsidiaries (the “Company”), we the undersigned  hereby  obligate the Company, that any transaction that it engages in that would violate the Laws of Ribbis (including all loans, financing, advances, preferred investments, repo agreements, credit sales, prepayment discounts, and guarantees) shall be structured as an Iska partnership, subject to the following terms.

In exchange for the funds advanced, merchandize received, or funds that halacha considers or will consider in the future, as if it were advanced to, or by, one of the undersigned parties in a manner that would violate Hilchos Ribbis, the recipient shall transfer to the investor a share (of equal value) of his assets as an Iska. All profits and losses arising from this investment shall be shared equally between the investor and recipient. The recipient must verify any claim of loss through the testimony of two Halachacly acceptable witnesses in an Orthodox Jewish court of law. Any claim regarding the amount of profits generated by the Iska investment must be verified with an oath, administered by an Orthodox Jewish court of law.

In the event of a claim of loss, the investor may demand a full and immediate payment of the remaining balance of this Iska.

The recipient shall have complete authority to manage this investment, and shall manage said investment in the manner deemed most beneficial to the investor. Any investment owned by the recipient may be used to create this Iska partnership, provided that the venture is Halachacly permissible. The recipient shall receive five dollars for his services during the term of the Iska. Under no circumstances will the investor be responsible for any losses above the funds advanced.

It is agreed that if the recipient pays the amount equal to the fees, points, penalties, interest, plus any other payments and benefits called for by any contract executed between the parties, or a verbal understanding reached between the parties, and complies with all of the terms and conditions of said agreements, as payment for the investor’s share of profits, the investor shall waive his right to demand verification of the results of the investment. Any additional profits shall belong solely to the recipient. These payments include the management fee mentioned above.

Any payments made that are not justified by this Iska agreement shall reduce the principal balance of this Iska. However, any future payments made to avoid providing the above-mentioned verification shall remain consistent with the above-mentioned documents/agreements.

This document shall override any other agreements,  even those that do not reference this document. Any mention of loans or interest in any agreement between the parties shall be interpreted as an Iska and to payments mentioned above. This declaration is legally binding and may be enforced in any Jewish or civil court, even in the event that one of the parties was unaware of its existence. This Iska shall follow the guidelines of Bris Yehuda.

This agreement has been executed in an effective manner and with a proper Kinyan.