Q. I recently joined a support group for a Torah institution and I became aware that they are about to borrow a large amount of money from a few individuals when they know they will not be able to repay it. Why is this not the same as an individual that borrows and does not pay back and that makes him a goneeff? Should I continue helping this group? Thanks.

A. Horav Shlomo Miller’s Shlit”a opinion is that if the borrowers know at the time of borrowing, that they can not pay back on time, they are obligated to inform that to the lenders.

However, if there is a distinct and real possibility that they can raise and collect the money needed in time for repayment, they are permitted to go ahead and take the loan.

He added that a mitigating factor would be if the institution owns equity in real property that could secure payment for the loan.

Rabbi A. Bartfeld as revised by Horav Shlomo Miller Shlit”a