Loan
Bouvier's Law Dictionary and Concise Encyclopedia · John Bouvier; revised by Francis Rawle · 1914
Bouvier's Law Dictionary and Concise Encyclopedia
A bailment without reward
A bailment of an article for use or consumption without reward. The thing so bailed. A loan, in general, implies that a thing Is lent without reward; but, in some cases, a loan may be for a reward: as, the loan of money.
Nichols v. Fearson, 7 Pet. (U. S.) 109, 8 L. Ed. 623.
It would be an inquiry too purely speculative, whether this use of the term loan originated In the times when taking interest was considered usury and improper, the bailment of money which was to be returned in kind. The supposition would furnish a reasonable explanation of the exception to the general rule that loan includes properly only those bailments where no reward is given or received by the bailee. Within the statutory and constitutional prohibition again-st the loaning of public funds, with or without Interest, a general deposit of such funds by a public oflicer subject to check is not a loan; Allibone v. Ames, 9 S. D. 74, 68 N. W. 165, 33 L. R. A. 585,
See Usury.