SECTION 1889. Borrower, when to repair injuries. 1890. Use of thing lent. 1891. Relending, forbidden. 1892. Borrower, when to bear expenses. 1893. Lender liable for defects. 1894. Lender may require return of thing lent. 1895. When returnable without demand. 1896. Place of return. SEC. 1884. A loan for use is a contract by which one Loan, what. 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. N. Y. C. C., Sec. 948. SEC. 1885. A loan for use does not transfer the title to the thing; and all its increase during the period of the loan belongs to the lender. N. Y. C. C., Sec. 949. SEC. 1886. A borrower for use must use great care for the preservation in safety and in good condition of the thing lent. N. Y. C. C., Sec. 950. Title to property lent. Care required of borrower. SEC. 1887. One who borrows a living animal for use, Same. must treat it with great kindness, and provide everything necessary and suitable for it. N. Y. C. C., Sec. 951. skill, SEC. 1888. A borrower for use is bound to have and to Degree of exercise such skill in the care of the thing lent as he causes the lender to believe him to possess. N. Y. C. C., Sec. 952. when to repair injuries. SEC. 1889 A borrower for use must repair all deterio- Borrower, rations or injuries to the thing lent, which are occasioned by his negligence, however slight. N. Y. C. C., Sec. 953. lent. SEC. 1890. The borrower of a thing for use may use it Use of thing for such purposes only as the lender might reasonably anticipate at the time of lending. N. Y. C. C., Sec. 954. SEC. 1891. The borrower of a thing for use must not part Relending. with it to a third person, without the consent of the lender. N. Y. C. C., Sec. 955. forbidden. Borrower, when to bear expenses. Lender liable for defects. Lender may require return of thing lent. When returnable without de. mand. Place of return. SEC. 1892. The borrower of a thing for use must bear all its expenses during the loan, except such as are necessarily incurred by him to preserve it from unexpected and unusual injury. For such expenses he is entitled to compensation from the lender, who may, however, exonerate himself by surrendering the thing to the borrower. N. Y. C. C., Sec. 956. SEC. 1893. The lender of a thing for use must indemnify the borrower for damage caused by defects or vices in it, which he knew at the time of lending, and concealed from the borrower. N. Y. C. C., Sec. 957. SEC. 1894. The lender of a thing for use may at any time require its return, even though he lent it for a speci fied time or purpose. But if, on the faith of such an agreement, the borrower has made such arrangements that a return of the thing before the period agreed upon would cause him loss, exceeding the benefit derived by him from the loan, the lender must indemnify him for such loss, if he compels such return, the borrower not having in any manner violated his duty. N. Y. C. C., Sec. 958. SEC. 1895. If a thing is lent for use for a specified time or purpose, it must be returned to the lender without demand, as soon as the time has expired, or the purpose has been accomplished. In other cases it need not be returned until demanded. SEC. 1896. N. Y. C. C., Sec. 959. The borrower of a thing for use must return it to the lender, at the place contemplated by the parties at the time of lending; or if no particular place was so contemplated by them, then at the place where it was at that time. N. Y. C. C., Sec. 960. CHAPTER II. LOAN FOR EXCHANGE. SECTION 1902. Loan for exchange, what. 1903. Same. 1904. Title to property lent. 1905. Contract cannot be modified by lender. exchange, SEC. 1902. A loan for exchange is a contract by which Loan for one delivers personal property to another, and the latter what. agrees to return to the lender a similar thing at a future time, without reward for its use. N. Y. C. C., Sec. 961. SEC. 1903. A loan, which the borrower is allowed by Same. the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this chapter. N. Y. C. C., Sec. 962. SEC. 1904. By a loan for exchange the title to the thing lent is transferred to the borrower, and he must bear all its expenses, and is entitled to all its increase. N. Y. C. C., Sec. 963. SEC. 1905. A lender for exchange cannot require the borrower to fulfil his obligations at a time, or in a manner, different from that which was originally agreed upon. This follows from the nature of the contract. It is, in fact, simply an executory exchange. N. Y. C. C., Sec. 964. SEC. 1906. Secs. 1893, 1895 and 1896, apply to a loan Certain seefor exchange. tions appli. cable, CHAPTER III. LOAN OF MONEY. NOTE.-Originally, no interest was allowed upon a loan of money. But with the progress of business, it became necessary, and the transaction thus entered into, although in strictness a hiring, is universally known as a loan. This use of the word having obtained so long, it would be idle to attempt to change it. Loan of money. Loan to be repaid in current money. Loan may be for reward. SECTION 1912. Loan of money. 1913. Loan to be repaid in current money. 1914. Loan may be for reward. 1915. Interest, what. 1916. Annual rate. 1917. Legal interest. 1918. Same. 1919. Interest becomes part of principal, when. 1920. Interest on judgment. SEC. 1912. 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. A loan for mere use is governed by the chapter on Loan for Use. 1 N. Y. C. C., Sec. 966. SEC. 1913. A borrower of money must pay the amount due in such money as is current at the time when the loan becomes due, whether such money is worth more or less than the actual money lent. N. Y. C. C., Sec. 967. SEC. 1914. A loan of money may be made with or without reward, but is presumed to be made for reward. N. Y. C. C., Sec. 968. Annual rate. Logal interest. Same. SEC. 1916. Reward for the loan, forbearance or use of equivalent, is called interest. N. Y. C. C., Sec. 969. When a rate of interest is prescribed by a law or contract, without specifying the period of time by which such rate is to be calculated, it is to be deemed an annual rate. N. Y. C. C., Sec. 970. SEC. 1917. Under an obligation to pay interest, no rate being specified, interest is payable at the rate of ten per cent. per annum, and in like proportion for a longer or shorter time; but in the computation of interest for less than a year, three hundred and sixty days are deemed to constitute a year. SEC. 1918. N. Y. C. C., Sec. 971; Stats. 1868, 553, Sec. 7; 1870, 199, Sec. 1. Parties may agree in writing for the pay. ment of any rate of interest, and it shall be allowed, ac cording to the terms of the agreement, until the entry of judgment. Stats. 1868, 553, Sec. 2; 1870, 699, Sec. 1. SEC. 1919. The parties may, in any contract in writing, whereby any debt is secured to be paid, agree that if the interest on such debt is not punctually paid, it shall become a part of the principal, and thereafter bear the same rate of interest as the principal debt. Stats. 1850, 92, Sec. 3. judgment. SEC. 1920. No judgment in any Court of this State Interest on shall draw interest at a rate to exceed seven per cent. per annum. Interest must not be compounded in any manner or form, on a judgment. TITLE V. HIRING. CHAPTER I. HIRING IN GENERAL. II. HIRING OF REAL PROPERTY. CHAPTER I. HIRING IN GENERAL. SECTION 1925. Hiring, what. 1926. Products of thing. 1927. Quiet possession. 1928. Degree of care, etc., on part of hirer. 1930. Thing let for a particular purpose. 1931. When letter may terminate the hiring. 1932. When hirer may terminate the hiring. 1933. When hiring terminates. 1934. When terminated by death, etc., of party. 1935. Apportionment of hire. what. SEC. 1925. Hiring is a contract by which one gives to Hiring, another the temporary possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time. N. Y. C. C., Sec. 979. |