Baba Basra 10:7-8
Baba Basra 10:7
Let’s say that there are two brothers, one of them needy and the other one wealthy, and their father left them a bathhouse and an olive-press. If the father made them for rental, they divide the proceeds; if he made them for personal use, the wealthy brother can tell the needy brother to buy himself some servants and let them use the bathhouse, or to buy himself some olives and press them (i.e., he can keep the needy brother from renting out their joint inheritance). If there are two residents in the same city, each named Yoseif ben Shimon, they cannot write a bill of debt against one another, nor can a third party write a bill of debt on them (because each could claim that it refers to the other). If a person found a receipt for repaying Yoseif ben Shimon among his papers, his accounts with both people by this name are considered paid. We can avoid such situations by writing the names of three generations in legal documents. If three generations are identical, they should make their marks. If their marks are the same, they should specify “kohein.” If a man tells his son that one of his accounts receivable has been paid but he doesn’t know which one, they are all considered paid. If two bills of debt are found for the same borrower, the larger one is considered paid and the smaller one is not. If a person lends money to his neighbor using a co-signer, he should not collect from the co-signer. If he lent the money on the condition that he may collect from whichever party he wishes, then he may collect from the co-signer. Rabban Shimon ben Gamliel says that if the borrower has money, then the lender should not collect from the co-signer regardless of whether or not he made such a condition. Rabban Shimon ben Gamliel also said that if someone is a guarantor for a woman’s kesubah and the woman’s husband divorces her, he (i.e., the husband) must vow not to let the woman derive benefit from him (which prevents them from re-marrying). If he doesn’t do this, the husband and wife could conspire to divorce, have the guarantor pay her kesubah, and then remarry.
Baba Basra 10:8
If a person lends to his neighbor with a document, he can collect from mortgaged property. If he lends with witnesses, he can only collect from unmortgaged property. If the lender has an “IOU” from the borrower, he collects from unmortgaged property. If there’s a co-signer who guaranteed the loan after the witnesses signed, he collects from (the co-signer’s) unmortgaged property. Such a case came before Rabbi Yishmael, who ruled that the lender collects from (the co-signer’s) unmortgaged property. Ben Nanas said that in such a case, he should not collect from either mortgaged or unmortgaged property. Rabbi Yishmael asked why not and Ben Nanas relayed the following analogy. Let’s say that a lender was physically accosting his borrower for repayment in the marketplace. His neighbor comes along and tells the lender to desist (i.e., the neighbor will repay the lender). In such a case, the neighbor is exempt from repaying because the lender did not extend the loan relying on him. What kind of a co-signer is obligated to repay a loan? One who says, “Lend to him and I’ll repay you” because the lender extended the loan relying on him. Rabbi Yishmael said that if a person wants to become wise, he should involve himself with financial laws. There is no greater subject area in Torah because it’s like a gushing spring. And one who wants to involve himself with financial laws should study Shimon ben Nanas.