1,112. Chometz as Collateral for a Loan

Chometz u’Matzah 4:5

Let’s say that a Jew gives his chometz to a non-Jew as collateral for a loan and he says, “If I do not repay the money between today and date X, this chometz is yours as of this moment.” The chometz is considered to be in the non-Jew's possession and it may be used after Passover. This is true even if the agreed-upon date is before Passover. If he didn’t specify that the non-Jew acquires the chometz as of that moment, then the chometz is considered like an object entrusted to the non-Jew and one may not benefit from it after Passover.

Chometz u’Matzah 4:6

Let’s say that a Jew and a non-Jew are traveling together on a ship and the Jew has chometz in his possession. When the fifth hour of the day arrives on 14 Nisan, he should sell the chometz to the non-Jew or give it to him as a gift. He may buy the chometz back from the non-Jew after Passover, as long as he gave him full (as opposed to conditional) possession.