Bava Metzia 72 - Guarantor and Loan Assumption (Finds)

One may act as a guarantor for an interest-bearing loan advanced by a non-Jew to a Jew, structured so that there is no interest payment if the borrower pays back to the guarantor.

One may assume an interest-bearing loan given by a non-Jew to a Jew, but the non-Jew must agree, for otherwise, one would, in fact, be paying interest to the first borrower, who would then be paying it to the lender.

If a non-Jew lent money on interest to a Jew and then converted, he may still collect interest if, before his conversion, he establishes it as a new loan, in the amount of principal plus interest.

Art: Rudolph Ernst - A Hard Bargain

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