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Responsa על דברים 23:21

Teshuvot Maharam

Q. What is the legal basis for permitting the lending of charity-funds upon a definite rate of interest?
A. Perhaps some persons have mistakenly ruled that charity-funds are in the same category as Temple-funds. However, this is incorrect, for the Talmud considers charity-funds as money belonging to "thy brother" and, therefore, must be included in the commandment: "unto thy brother thou shalt not lend upon interest (Deut. 23,21)". You know, however, how readily people will heed those who permit the forbidden.
SOURCES: Cr. 101. Cf. Agudah B.M. 73.
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Teshuvot Maharam

Those who lend charity-funds upon a definite rate of interest are doing an improper thing, for charity-funds are included in the commandment: "unto thy brother thou shalt not lend upon interest (Deut. 23,21)." However, such funds may be lent on condition that the profits but not the losses be shared.
SOURCES: Cr. 109; Mordecai Hagadol, p. 276b. Cf. Agudah B.M. 73.
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