Loan

When spoken of chattels, is a bailment without reward, either for use and return in specie, or for consumption and return in kind. When spoken of money, return of the res is never implied; nor is a reward for use excluded. A loan of money implies that the borrower may expend it, being bound only to return an equivalent sum; and, unless the contrary is agreed, that he will pay interest. Loan society; loan-fund society. A kind of club or incoi-porated society, of comparatively recent introduction, whose associate purpose is the raising of a fund by the contributions of members who have money to spare, which may be placed in the hands of members. desiring the use of money, upon interest; which interest becomes, in due time, the basis of dividends to the members. A general method has been for the society to collect contributions and dues from members, until a sufficient sum is in the treasury, and then to put up the loan to the highest bidder; whoever will give the best interest, other terms being favorable to the society, receives the loan. As soon as further contributions suffice, another loan is made, and so on. It is noticeable that although "loan" is used in the corporate name and in the course of dealing, the contract of the borrowing member has been sustained, in the courts, against the objection that the rate of interest promised was above that allowed by the usury laws, upon the ground that the transaction is not a loan, but an appropriation of partnership funds.