Loan

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.

7 Pet. (U. S.) 109.

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. In order to make a contract usurious, there must be a loan (Cowp. 112, 770; 1 Ves. Jr. 527; 2 Bl. 859; 3 Wils. 390), and the borrower must be bound to return the money at all events (2 Schoales & L. 470). The purchase of a bond or note is not a loan (3 Schoales & L. 469; 9 Pet. [U. S.] 103); but if such a purchase be merely colorable, it will be considered as a loan (2 Johns. Cas. [N. Y.] 60, 66; 12 Serg. & R. [Pa.] 46; 15 Johns. [N. Y.] 44).