Interest, Ribit and Riba

Interest, Ribit and Riba: Must These Disparate Legal Concepts Be Integrated or Is a More Nuanced Approach Appropriate for the Global Financial Community?

By: Leonard Grunstein

 

PART I

• ABSTRACT & INTRODUCTION

PART II

• THE DEFINITION OF THE TERM “RIBIT” AND A DISCUSSION OF THE ORIGIN AND NATURE OF THE PROHIBITION

PART III

• THEORY VERSUS PRACTICE – IS THERE A GENUINE PROHIBITION IN OUR TIMES?

PART IV

• THE ORIGIN OF THE TERM ISKA AND THE DEVELOPMENT OF THE THEME IN THE TALMUD

PART V

• THE ORIGIN OF THE HETER ISKA LOAN STRUCTURE AS A FINANCING MECHANISM THAT AVOIDS PROHIBITED RIBIT

PART VI

• THE EVOLUTION OF THE HETER ISKA STRUCTURE

PART VII

• IS A BANK OR OTHER ENTITY TREATED DIFFERENTLY UNDER THE HALACHA AS IT APPLIES TO RIBIT?

PART VIII

• HETER ISKA AND THE US COURTS

PART IX

• WHY THE HETER ISKA NEED NOT (AND UNDER US LAW AND PRACTICE SHOULD NOT) BE SIGNED BY PARTIES UNDER THE HALACHA

PART X

• THE SHA’ARIAH – SOURCES OF THE PROHIBITION AGAINST RIBA

PART XI

• AN ANALYSIS OF THE NATURE OF THE PROHIBITION AGAINST RIBA AND ITS APPLICATION IN PRACTICE, INCLUDING WHETHER ENTITIES ARE SUBJECT TO THE SAME RULES AS INDIVIDUALS

PART XII

• SHA’ARIAH COMPLIANT STRUCTURES

PART XIII

• REQUIREMENTS OF THE CAPITAL MARKETS

PART XIV

• OUTLINE OF A MODERN SUKUK STRUCTURE – IS IT CAPITAL MARKETS COMPLIANT OR NOT?

PART XV

• US CONSTITUTIONAL CONSIDERATIONS UNDER THE ESTABLISHMENT CLAUSE

PART XVI

• THE DISCONNECT BETWEEN RIBA IN THEORY UNDER THE SHA’ARIAH AND IN PRACTICE

PART XVII

• PROPOSED SOLUTION & CONCLUSION