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).

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.

A bailment without reward; consisting of the delivery of an article by the owner to another person, to be used by the latter gratuitously, and returned either in specie or in kind. A sum of money confided to another. Ramsey v. Whitbeck, 81 111. App. 210; Nichols v. Fearson, 7 Pet 109, 8 L. Ed. 623; Rodman v. Munson, 13 Barb. (N. Y.) 75; Booth v. Terrell, 16 Ga. 25; Payne v. Gardiner, 29 N. Y. 167. A loan of money is a contract by which one delivers a sum of money to another, and the latter agrees to return at a future time a sum equivalent to that which he borrowed. Civ. Code Cal. § 1912. Loan association. see Building and Loan Association.

— Loan certificates. Certificates issued by A clearing-house to the associated banks to the amount of seventy-five per cent, of the value of the collaterals deposited by the borrowing banks with the Loan committee of the clearing-house. Anderson.

— Loan for consumption. the Loan for consumption is an agreement by which one person delivers to another a certain quantity of things which are consumed by the use, under the obligation, by the borrower, to return to him as much of the same kind and quality. Civ. Co.de La, art. 2910. Loans are of two kinds,
—for consumption or for use. A loan for consumption is where the article is not to be returned specie, but in kind. This is a sale, and not a bailment. Code Ga. 1882, § 2125.

— Loau for exchange. A loan for exchange is a contract by which one delivers personal property to another, and the latter agrees to return to the lender a similar thing at a future time, without reward for its use. Civ. Code Cal. § 1902,

— Loan for use. The loan for use is an agreement by which a person delivers a thing to another, to use it according to its natural destination, or according to the ageement, under the obligation on the part of the borrower to return it after he shall have done using it Civ. Co.de La. art. 2893. A loan for use is a contract by which one gives to another the temporary possession and use of personal property, and the latter agrees to return the same thing to him at a future time, without reward for its use. Civ. Code Cal. § 1884. A loan for use is the gratuitous grant of an article to another for use, to be returned in specie, and may be either for a certain time or indefinitely, and at the will of the grantor. Co.de Ga. 1882, § 2126. Loan for use (calied "commodatum" in the civil law) differs from a loan for consumption, (called "mu,tuum" in the civll law,) in this: that the commodatum must be specifically returned ; the mutuum is to be returned in kind. In the case of a commodatum, the property in the thing remains in the lender; in a mutuum, the property passeB to the borrower. Bouvier.
—Loan, gratuitous, (or commodate.) A class of bnil-ment which is calied "commodatum" in the Roman law, and is denominated by Sir William Jones a "loan for use," (prit-dt-usage,) to distinguish it from "mutuum," a loan for consumption. It is the gratuitous lending of an article to the borrower for his own use. Wharton.

— Loan societies. In English law. A kind of club formed for the purpose of advancing money on loan to the industrial classes.

A bailment of goods to be used by the bailee temporarily, without reward.

A bailment without reward; consisting of the delivery of an article by the owner to another person, to be used by the latter gratuitously, and returned either in specie or in kiud. A sum of money confided to another. A loan of money is a contract by which one delivers a sum of money to another, and the latter ayrees to return at a future time a sum equivalent to that which he borrowed. Civil Code Cal. § 1912.

^ 1. Referring to a chattel, a bailment without reward; also, the thing itself so bailed. Iioan for consumption. Contemplates a return of the article in kind: strictly, a barter or an exchange.' Compare MUTUtJM. See Legacy. Loan for use. A bailment of goods to be used by the bailee temporarily, or for a certain time, without reward.* See Bailment; Hieing. 2. (1) Referring to money, never implies a return of the identical coin or notes; yet the idea of a reward for the use is not excluded. The delivery by one party, the lender, to, and the receipt by, another party, the torrower, of a given sum of money, upon an agreement, express or implied, to repay the sum with or without interest.' (2) The advance upon a note discounted, without reference to its character as business or accommodation paper. * See Discount; Interest, 2 (3); TTsdbt. Loan association, or society. See Building, Association. li Oan certificate. During times of financial panic, in New Tox-k City, and perhaps elsewhere, what are known as " loan certificates " are issued by the clearing-house to the associated banks, to the amount of seventy-five per centum of the value of the collaterals. deposited by the borrowing banics with the loan committee of the clearing-house.

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.