Leonard-GrunsteinMr. Leonard Grunstein, a member of Revel’s Board of Overseers, published a new article in the Fall/Winter 2014 edition of the Real Estate Finance Journal entitled “The Origin of Non- Recourse Mortgage Financing: How Ancient Is This Seemingly Modern Financing Technique and Is It Perhaps Sha‘ariah and Halachically Compliant?” The article explains the modern non-recourse mortgage financing structure, traces its origins, and suggests that, conceptually, the non-recourse financing format bears more than a passing resemblance to three financing forms in use in medieval times, known as the Iska (in Judaism), Qirad (in Islam) and Commenda (in Christianity). These forms enabled the financing of trade and business. They also provided for an interest-like return to the financier, in many cases, without violating the Biblical prohibition against making interest-bearing loans. This essay is one of a number of studies that Mr. Grunstein to has published that bring together the fields of finance and halakhah. He has also recently given a shiur on Ribit and Iska at Yeshivat Sha‘alvim.


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