Heter Iska is an Enforceable Note

On October 1, 2024, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Junik v. 61 N. 11 LLC, 2022 NY Slip Op. 34793(U), holding that a Heter Iska created an enforceable note, explaining:

[O]n May 23, 2017 the plaintiff Dov Junik and defendant Cheskie Weisz entered into a Heter Iska, a religious document utilized to circumvent the Jewish prohibition against interest by treating all loans as partnerships or business ventures. That document contains different terms than the promissory note and therefore the defendants argue there are questions of fact which foreclose a summary determination at this time. However, the promissory note clearly evidences a loan and obligations pursuant to that note is unaffected by a Heter Iska. Thus, a Heter Iska is merely a compliance in form with Hebraic law and does not actually create any partnership, joint venture, or some other profit sharing agreement. Therefore, the existence of the Iska does not create any questions of fact concerning the contents of the note at all. Any motion seeking to oppose the granting of summary judgement based upon the Heter Iska or the request to dismiss the lawsuit based upon the Heter Iska are all denied.

(Internal quotations and citations omitted).

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