A LOAN is: - Deposit Of Money By A Customer With Banker; Gimbel Bros !

White" #$ N % & '( )))" ))*" '+) App Di! ,-. - Bailment /ith- out re/ar(" 0onsistin1 of the (eli!ery of an arti0le by the o/ner to another person" to be use( by the latter 1ratuitously" an( returne( either in spe0ie or in kin( - A sum of money 0onfi(e( to another Ni0hols ! 2earson" * 3et #$." 4 L 5( )'-; Booth ! 6errell" #) Ga '$" '+; - A borro/in1 of money or other personal property by a person /ho promises to return it" &tate ! Molt7ner" #,# Or -++" #* 3 '( +++" ++); - Contra0t /hereby one (eli!ers money to another /ho a1rees to return e8ui!alent sum 5aster Oil Corporation ! &trauss" 6e9 Ci! App " +' & W '( --)" -,$; &ha/ ! M0&hane" 6e9 Com App " +$ & W '( '*4" '4'; - Debts arisin1 from borro/in1 of money" La/rie ! Miller" 6e9 Com App " ,+ & W '( #*'" #*-; - Deli!ery by one party an( re0eipt by another party of money on a1reement" e9press or implie(" to repay money /ith or /ithout interest" 3arsons ! 2o9 #*. Ga )$+" #*) & 5 ),'; $ A Graybeal Co ! Cook" ### Cal App +#4" '.+ 3 #$44" #$.'; - 3ayment of money by one to another to be repai( some future (ay" :n re Arbu0kle;s 5state" -', 3a +$#" #44 A *+4" *)#; - 6hat /hi0h one len(s or borro/s" :n re Lalla;s 5state" -)' :ll )'#" # N 5 '( +$" +-; - 6ransa0tion 0reatin1 0ustomary relation of borro/er an( len(er" Banno0k County ! Citi7ens; Bank < 6rust Co " +- :(aho #+." '' 3 '( )*, - 6ransa0tion /herein one party transfers to the other a sum of money /hi0h that other a1rees to repay absolutely %e7ek ! Dela/are" L < W = Co " '4 N % & '( -+" -)" #*) Mis0 ++- Deposit 3othier (efines it to be a 0ontra0t" by /hi0h one of the 0ontra0tin1 parties 1i!es a thin1 to another to keep" /ho is to (o so 1ratuitously" an( obli1es himself to return it /hen he shall be re8ueste( 6he four elements of a >loan> are" a prin0ipal sum" a pla0in1 of the sum /ith a safe borro/er" an a1reement that interest is to be pai(" an( a re0o1nition by re0ei!er of money of his liability for return of the prin0ipal amount /ith a00rue( interest M0Len(on ! ?ohnson" *# Ga App ,'," -# & 5 '( 4." .' Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+A BA:LM5N6 (efine(: A (eli!ery of 1oo(s or personal property" by one person @bailorA to another @baileeA" in trust for the e9e0ution of a spe0ial obBe0t upon or in relation to su0h 1oo(s" benefi0ial either to the bailor or bailee or both" an( upon a 0ontra0t" e9press or implie(" to perform the trust an( 0arry out su0h obBe0t" an( thereupon either to re(eli!er the 1oo(s to the bailor or other/ise (ispose of the same in 0onformity /ith the purpose of the trust 6he bailee is responsible for e9er0isin1 (ue 0are to/ar( the 1oo(s Deli!ery of personality for some parti0ular use" or on mere (eposit" upon a 0ontra0t" e9press or implie(" that after purpose has been fulfille( it shall be re(eli!ere( to the person /ho (eli!ere( it" or other/ise (ealt /ith a00or(in1 to his (ire0tions" or kept until he re0laims it" as the 0ase may be &impkins ! =itter" #4. Neb ),," '$, N W '( -4-" -4+ Generally" no fi(u0iary relationship is 0reate( by a bailment an( hen0e it is not a00urate to refer to the transfer as >in trust>" be0ause no trustee-benefi0iary relationship is 0reate( &ee also 3a/n; 3le(1e A0tual bailment One /hi0h e9ists /here there is either: @aA an >a0tual (eli!ery"> 0onsistin1 in 1i!in1 to the bailee or his a1ent the real possession of the 0hattel" or @bA a >0onstru0ti!e (eli!ery"> 0onsistin1 of any of those a0ts /hi0h" althou1h not truly 0omprisin1 real possession of the 1oo(s transferre(" ha!e been hel( by le1al 0onstru0tion e8ui!alent to a0ts of real (eli!ery Bla0kCs La/ Di0tionary

&i9th 5(ition @pa1e #,'A D53O&:6 (efine(: 0ontra0ts Dsually (efine( to be a nake( bailment of 1oo(s to be kept for the bailor" /ithout re/ar(" an( to be returne( /hen he shall re8uire it ?ones; Bailm -)" ##*; # Bell;s Com '+* &ee also Dane;s Abr 0h #*" aft #" &e0 -; &tory on Bailm 0 '" &e0 ,# 3othier (efines it to be a 0ontra0t" by /hi0h one of the 0ontra0tin1 parties 1i!es a thin1 to another to keep" /ho is to (o so 1ratuitously" an( obli1es himself to return it /hen he shall be re8ueste( 6raite (u Depot &ee Co(e Ci! tit ##" 0 #" art #.#+; Louisiana Co(e" tit #-" 0 #" art '4.* ' Deposits" in the 0i!il la/" are (i!isible into t/o kin(s; ne0essary an( !oluntary A ne0essary (eposit is su0h as arises from pressin1 ne0essity; as" for instan0e" in 0ase of a fire" a ship/re0k" or other o!er/helmin1 0alamity; an( then0e it is 0alle( miserabile (epositum Louis Co(e '.-+ A !oluntary (eposit is su0h as arises /ithout any su0h 0alamity" from the mere 0onsent or a1reement of the parties Di1 lib #)" tit -" &e0 ' - 6his (istin0tion /as material in the 0i!il la/" in respe0t to the reme(y" for in!oluntary (eposits" the a0tion /as only in simplum; in the other in (uplum" or t/o-fol(" /hene!er the (epositary /as 1uilty of any (efault 6he 0ommon la/ has ma(e no su0h (istin0tion" an(" therefore" in a ne0essary (eposit" the reme(y is limite( to (ama1es 0o-e9tensi!e /ith the /ron1 ?ones" Bailm ,4 , Deposits are a1ain (i!i(e( by the 0i!il la/ into simple (eposits" an( se8uestrations; the former is /hen there is but one party (epositor @of /hate!er number 0ompose(A" ha!in1 a 0ommon interest; the latter is /here there are t/o or more (epositors" ha!in1 ea0h a (ifferent an( a(!erse interest &ee &e8uestration + 6hese (istin0tions 1i!e rise to !ery (ifferent 0onsi(erations in point of responsibility an( ri1hts Eitherto they (o not seem to ha!e been in0orporate( in the 0ommon la/; thou1h if 0ases shoul( arise" the prin0iples appli0able to them /oul( s0ar0ely fail of re0ei!in1 1eneral approbation" at least" so far as they affe0t the ri1hts an( responsibilities of the parties Cases of Bu(i0ial se8uestration an( (eposits" espe0ially in 0ourts of 0han0ery an( a(miralty" may hereafter re8uire the subBe0t to be fully in!esti1ate( At present" there ha!e been fe/ 0ases in /hi0h it has been ne0essary to 0onsi(er upon /hom the loss shoul( fall /hen the property has perishe( in the 0usto(y of the la/ &tory on Bailm &e0 ,#-,) ) 6here is another 0lass of (eposits noti0e( by 3othier" an( 0alle( by him irre1ular (eposits 6his arises /hen a party ha!in1 a sum of money /hi0h he (oe;s not think safe in his o/n han(s; 0onfi(es it to another" /ho is to return him" not the same money" but a like sum /hen he shall (eman( it 3oth 6raite (u Depot" 0h -" &e0 - 6he usual (eposit ma(e by a person (ealin1 /ith a bank is of this nature 6he (epositor" in su0h 0ase" be0omes merely a 0re(itor of the (epositary for the money or other thin1" /hi0h he bin(s himself to return * 6his spe0ies of (eposit is also 0alle( an improper (eposit" to (istin1uish it from one that is re1ular an( proper" an( /hi0h latter is sometimes 0alle( a spe0ial (eposit # Bell;s Com '+*-4 &ee , Bla0kf = -.+ 4 6here is a kin( of (eposit" /hi0h may" for (istin0tion;s sake" be 0alle( a 8uasi (eposit" /hi0h is 1o!erne(" by the same 1eneral rule as 0ommon (eposits :t is /hen a party 0omes la/fully to the possession of another person;s property by fin(in1 Dn(er su0h 0ir0umstan0es" the fin(er seems boun( to the same reasonable 0are of it as any !oluntary (epositary e9 0ontra0tu Do0t < &tu Dial '" 0h -4; &tory on Bailm &e0 4+; an( see Ba0 Abr Bailm D &ee further" on the subBe0t of (eposits" Louis Co(e" tit #-; Ba0 Abr Bailment; Di1est" (epositi !el 0ontra; Co(e" lib ," tit -,; :nst lib -" tit #+" &e0 -; No! *- an( *4; Domat" li! #" tit *" et tom '" li! -" tit #" s +" n '); # Bou! :nst n #$+-" et se8 A La/ Di0tionary A(apte( 6o 6he Constitution An( La/s Of 6he Dnite( &tates Of Ameri0a An( Of 6he &e!eral &tates Of 6he Ameri0an Dnion by: ?ohn Bou!ier =e!ise( &i9th 5(ition" #4+) LOAN (efine(: A len(in1" :n re Lalla;s 5state" -)' :ll )'#" # N 5 '( +$" +- Also means a(!an0e of money /ith an absolute promise to repay" Bankers Mort1a1e Co ! Commissioner of :nternal =e!enue" C C A 6e9 " #,' 2 '( #-$" #-#; (eposit on time 0ertifi0ates" Carroll ! 5blen" #*4 6enn #,)" #+) & W '( ,#'" ,#+; transa0tion 0reatin1 0ustomary relation of borro/er an( len(er" Banno0k County ! Citi7ens; Bank < 6rust Co " +- :(aho #+." '' 3 '( )*, Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+A LOAN C5=6:2:CA65& (efine(: Certifi0ates issue( by a 0learin1-house to the asso0iate( banks to the amount of se!enty-fi!e per 0ent of the !alue of the 0ollaterals (eposite( by the borro/in1 banks /ith the loan 0ommittee of the 0learin1-house An(erson Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+A LOAN 2O= CON&DM36:ON (efine(: A loan for 0onsumption is /here the arti0le is not to be returne( in spe0ie" but in kin( 6his is a sale an( not a bailment Co(e Ga #44'" F '#'+ @Ci! Co(e #.#$" F -+#)A 6he loan for 0onsumption is an a1reement by /hi0h one person (eli!ers to another a 0ertain 8uantity of thin1s /hi0h are 0onsume( by the use" un(er the obli1ation" by the borro/er" to return to him as mu0h of the same

kin( an( 8uality Ci! Co(e La art '.#$ Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+A LOAN 2O= 5GCEANG5 (efine(: A loan for e90han1e is a 0ontra0t by /hi0h one (eli!ers personal property to another" an( the latter a1rees to return to the len(er a similar thin1 at a future time" /ith- out re/ar( for its use Ci! Co(e Cal F #.$' Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+A LOAN 2O= D&5 (efine(: O00urs /here a 0hattel is to be use( by bailee /ithout re/ar( an( then spe0ifi0ally returne( to bailor &la0k ! Bryan" '.. Hy #-'" #4, & W '( 4*-" 4*) 6he loan for use is an a1reement by /hi0h a person (eli!ers a thin1 to another" to use it a00or(in1 to its natural (estination" or a00or(in1 to the a1reement" un(er the obli1ation on the part of the borro/er" to return it after he shall ha!e (one usin1 it Ci! Co(e La art '4.- A loan for use is a 0ontra0t by /hi0h one 1i!es to another the temporary possession an( use of personal property" an( the latter a1rees to return the same thin1 to him at a future time" /ithout re/ar( for its use Ci! Co(e Cal F #44, A loan for use is the 1ratuitous 1rant of an arti0le to another for use" to be returne( in spe0ie" an( may be either for a 0ertain time or in(efinitely" an( at the /ill of the 1rantor Co(e Ga #44'" F '#') @Ci! Co(e #.#$" F -+#*A Loan for use @0alle( >0ommo(atum> in the 0i!il la/A (iffers from a loan for 0onsumption" @0alle( >mutuum> in the 0i!il la/"A in this : that the 0ommo(atum must be spe0ifi0ally returne(; the mutuum is to be returne( in kin( :n the 0ase of a 0ommo(atum" the property in the thin1 remains in the len(er ; in a mutuum" the property passes to the borro/er Bou!ier Bla0k;s La/ Di0tionary 2ourth 5(ition @pa1e #$4+" #$4)A &ee: http:II/// Bohn/a(emoore netI0ontentIthey-0ant-take-your-house-la/fully-any/ay &ee: http:II/// Bohn/a(emoore netItruthIBkf-se0ret-so0ieties D53O&:6A=% (efine(: 0ontra0ts Ee /ith /hom a (eposit is 0onfi(e( or ma(e ' :t is" the essen0e of the 0ontra0t of (eposits that it shoul( be 1ratuitous on the part ;of the (epositary . M = ,*$ Bein1 a bailee /ithout re/ar(" the (epositary is boun( to sli1ht (ili1en0e only" an( he is not therefore ans/erable e90ept for 1ross ne1le0t # Dane;s Abr 0 #*" art ' But in e!ery 0ase 1oo( faith re8uires that he shoul( take reasonable 0are; an( /hat is reasonable 0are" must materially (epen( upon the nature an( 8uality of the thin1" the 0ir0umstan0es un(er /hi0h it is (eposite(" an( sometimes upon the 0hara0ter an( 0onfi(en0e" an( parti0ular (ealin1 of the parties &ee #, &er1 < =a/le" '*+ 6he (e1ree of 0are an( (ili1en0e is not altere( by the fa0t" that the (epositary is the Boint o/ner of the 1oo(s /ith the (epositor; for in su0h a 0ase" if the possessor is 1uilty of 1ross ne1li1en0e" he /ill still be responsible" in the same manner as a 0ommon (epositary" ha!in1 no interest in the thin1 ?ones; Bailm 4'" 4- As to the 0are /hi0h a (epositary is boun( to use" see ' L( =aym .$$" .#,; # L( =aym )++; ' Hent;s Com ,-4; #* Mass = ,*." ,..; , Burr ''.4; #, &er1 < =a/le" '*+; ?ones; Bailm 4; &tory on Bailm &e0 )-" ), - 6he (epositary is boun( to return the (eposit in in(i!i(uo" an( in the same state in /hi0h he re0ei!e( it; if it is lost" or inBure(" or spoile(" by his frau( or 1ross ne1li1en0e" he is responsible to the e9tent of the loss or inBury ?ones; Bailm -)" ,)" #'$; #* Mass = ,*.; ' Ea/k N Car = #,+; # Dane;s Abr 0 #*" art # an( ' Ee is also boun( to restore" not only the thin1 (eposite(" but any in0rease or profits /hi0h may ha!e a00rue( from it; if an animal (eposite( bear youn1" the latter are to be (eli!ere( to the o/ner &tory on Bailm &e0 .. , :n 1eneral it may be lai( (o/n that a (epositary has no" ri1ht to use the thin1 (eposite( Ba0 Abr Bailm D; ?ones; Bailm 4#" 4'; # Dane;s Abr 0 #*" art ##" &e0 ' But this proposition must be re0ei!e( /ith many 8ualifi0ations 6here are 0ertain 0ases" in /hi0h the use of the thin1 may be ne0essary for the (ue preser!ation of the (eposit 6here are others" a1ain" /here it /oul( be mis0hie!ous; an( others a1ain" /here it /oul( be" if not benefi0ial" at least in(ifferent ?ones; Bailm 4#" 4'; O/en;s = #'-" #',; ' &alk +''; ' Hent;s Com ,+$ 6he best 1eneral rule on the subBe0t" is to 0onsi(er /hether there may or may not be an implie( 0onsent" on the part of the o/ner" to the use :f the use /oul( be for the benefit of the (eposit" the assent of the o/ner may /ell be presume(; if to his inBury" or perilous" it ou1ht not to be presume(; if the use /oul( be in(ifferent" an( other 0ir0umstan0es" (o not in0line either /ay" the use may be (eeme( not allo/able ?ones; Bailm 4$" 4#; &tory on Bailm &e0 .$; # Bou! :nst n #$$4" et se8 A La/ Di0tionary A(apte( 6o 6he Constitution An( La/s Of 6he Dnite( &tates Of Ameri0a An( Of 6he &e!eral &tates Of 6he Ameri0an Dnion by: ?ohn Bou!ier =e!ise( &i9th 5(ition" #4+) D53O&:6O= (efine(: 0ontra0ts Ee /ho makes a (eposit ' Ee is 1enerally entitle( to re0ei!e the (eposit from the (epositary" but to this rule there are e90eptions; as /hen the (epositor at the time of makin1 the

(eposit ha( no title to the property (eposite(" an( the o/ner 0laims it from the (epositary" the (epositor 0annot re0o!er it; an( for this reason" that he 0an ne!er be in a better situation than the o/ner # Barn < Al( ,+$; + 6aunt *+. As to the pla0e /here the (epositor is entitle( to re0ei!e his (eposit" see &tory on Bailm &e0 ##*-#'$ # Bou! :nst n #$)- A La/ Di0tionary A(apte( 6o 6he Constitution An( La/s Of 6he Dnite( &tates Of Ameri0a An( Of 6he &e!eral &tates Of 6he Ameri0an Dnion by: ?ohn Bou!ier =e!ise( &i9th 5(ition" #4+) :NDO=&5= (efine(: 0ontra0ts 6he person /ho makes an in(orsement ' 6he in(orser of a bill of e90han1e" or other ne1otiable paper" by his in(orsement un(ertakes to be responsible to the hol(er for the amount of the bill or note" if the latter shall make a le1al (eman( from the payer" an(" in (efault of payment" 1i!e proper noti0e thereof to the in(orser But the in(orser may make his in(orsement 0on(itional" /hi0h /ill operate as a transfer of the bill" if the 0on(ition be performe(; or he may make it 8ualifie(" so that he shall not be responsible on non-payment by the payer Chitty on Bills" #*."#4$ - 6o make an in(orser liable on his in(orsement" the instrument must be 0ommer0ial paper" for the in(orsement of a bon( or sin1le bill /ill not" per se" 0reate a responsibility #- &er1 < =a/le" -## But see 6re!al ! 2it0h" + Whart -'+; Eopkins ! Cumberlan( Jalley = = Co " - Watts < &er1 ,#$ , When there are se!eral in(orsers" the first in point of time is 1enerally" but not al/ays" first-responsible; there may be 0ir0umstan0es /hi0h may 0ast the responsibility" in the first pla0e" as bet/een them" on a subse8uent in(orsee + Munf = '+' A La/ Di0tionary A(apte( 6o 6he Constitution An( La/s Of 6he Dnite( &tates Of Ameri0a An( Of 6he &e!eral &tates Of 6he Ameri0an Dnion by: ?ohn Bou!ier =e!ise( &i9th 5(ition" #4+) BA:LO= n (efine(: @La/A contract law a person /ho retains o/nership of 1oo(s but entrusts possession of them to another un(er a bailment One /ho (eli!ers personal property in bailment &ummary: A (eli!ery of 1oo(s or personal property" by one person @bailorA to another @baileeA" in trust for the e9e0ution of a spe0ial obBe0t upon or in relation to su0h 1oo(s" benefi0ial either to the bailor or bailee or both" an( upon a 0ontra0t" e9press or implie(" to perform the trust an( 0arry out su0h obBe0t" an( thereupon either to re(eli!er the 1oo(s to the bailor or other/ise (ispose of the same in 0onformity /ith the purpose of the trust 6he bailee is responsible for e9er0isin1 (ue 0are to/ar( the 1oo(s Deli!ery of personality for some parti0ular use" or on mere (eposit" upon a 0ontra0t" e9press or implie(" that after purpose has been fulfille( it shall be re(eli!ere( to the person /ho (eli!ere( it" or other/ise (ealt /ith a00or(in1 to his (ire0tions" or kept until he re0laims it" as the 0ase may be &impkins ! =itter" #4. Neb ),," '$, N W '( -4-" -4+ K %our 3roperty en(orseK re(eeme( la/ful money (efine( per #' u s 0 ,## By:LLLLLLLLLLLLLLLLLLLLLLLLLLLLLL Bailor for Bailee