loan

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loan

a transaction whereby property is lent or given to another on condition of return or, where the loan is of money, repayment. During the period of the loan the borrower is entitled to use the thing loaned for the purpose agreed between the parties. In a loan of money, the money lent becomes the property of the borrower during the period of the loan against an undertaking to return a sum of equivalent amount either on demand or on a specified date or in accordance with an agreed schedule of repayments.

LOAN, contracts. The act by which a person lets another have a thing to be used by him gratuitously, and which is to be returned, either in specie or in kind, agreeably to the terms of the contract. The thing which is thus transferred is also called a loan. 1 Bouv. Inst. n. 1077.
     2. 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. R. 109.
     3. In order to make a contract usurious, there must be a loan; Cowp. 112, 770; 1 Ves. jr. 527; 2 Bl. R. 859; 3 Wils. 390 and the borrower must be bound to return the money at all events. 2 Scho. & Lef. 470. The purchase of a bond or note is not a loan ; 3 Scho. & Lef. 469; 9 Pet. R 103; but if such a purchase be merely colorable, it will be considered as a loan. 2 John. Cas. 60; Id. 66; 12 S. & R. 46; 15 John. R. 44.

References in periodicals archive ?
On the flip side, many factors make going for bank loans a not so attractive option.
Each region or each industry has private characteristics that can affect firms' possibility of attaining bank loan as well as determinants of firms' capital structure.
The sensitivity of the loss given default rate to systematic risk: new empirical evidence on bank loans. Journal of Financial Services Research, vol.
Finally, the results on the lagged bank loan variable display the speed of adjustment of Turkish textile SMEs to their target bank loans.
We then created two subdependent variables for the use of bank loans. The first one (for the whole sample)--probability of having a bank loan--is a binary variable (yes/no) on having a bank loan.
In the process, bank loans expanded the money supply through the creation of new bank liabilities/deposits.
The funds were used to pay principal and interest owed on the $14 million Royal Bank loan."
Group finance director Peter Hickson said: "Finance of this kind is less expensive than the bank loans we originally arranged to enable the US deal.
"There are several reasons why businesses choose to rely on commercial bank loans when they need to raise capital," says David King, branch manager of RHI Management Resources' Calgary location.
The total project cost of US$123.8 million will be financed by the World Bank loan and a US$38.8 million contribution from the Government of Panama.
More specifically, two key factors shape the way in which monetary policy works: the extent to which banks rely on reservable deposit financing, and hence adjust their loan supply schedules in the wake of open market operations; and the extent to which certain borrowers in the economy are "bank-dependent," and therefore cannot offset these Fed-induced shifts in bank loan supply easily.
This article reports on a study of bank loan officers conducted to determine how this group of users perceived some of the new audit reports compared with former reports.