TITLE X – OF LOAN
Art. 1. There are two kinds of loans:
The loan of things which may be used without being destroyed;
And the loan of things which are destroyed by being used.
The first kind is called loan for use or commodatum.
The second kind is called loan for consumption or mutuum.
Art. 2. The second kind is still subdivided into a gratuitous loan and loan on interest.
CHAPTER I – OF THE LOAN FOR USE OR COMMODATUM
SECTION I – OF THE NATURE OF THE LOAN FOR USE
Art. 3. The loan for use in an agreement by which a person delivers a thing to another, to use it, as he pleases, under the obligation by him to return it, after he shall have done using it.
Art. 4. This loan is essentially gratuitous; otherwise it would be letting or hiring.
Art. 5. The lender remains proprietor of the thing lent.
Art. 6. Every thing which is in commerce and which is not consumed by the use, may be the object of this agreement.
Art. 7. The obligations entered into by the loan for use, are binding upon the heirs of the lender and of the borrower.
SECTION II – OF THE ENGAGEMENTS OF THE BORROWER FOR USE
Art. 8. The borrower is bound to keep and preserve in the best possible order, the thing lent.
Art. 9. If the borrower employs the thing to another use, or for a longer time than has been agreed on, he shall be liable for the loss which may happen, although the same might have happened by chance.
Art. 10. If the thing lent be destroyed by a chance which might have been prevented by the borrower, in making use of his own, or if unable to preserve both, he has preferred preserving his own, he is answerable for the loss of the other.
Art. 11. If the thing has been valued at the time of lending it, the loss which results even by chance, is on account of the borrower, unless there has been a contrary agreement.
Art. 12. If the thing be made worse by the effects of the use alone for which it was borrowed, and without any fault on the part of the borrower, he is not answerable for the same.
Art. 13. The borrower is not at liberty to keep the thing as a compensation for what the lender owes him.
Art. 14. If, in order to use the thing, the borrower be compelled to go to some expense, he has no right to be reimbursed by the lender.
SECTION III – OF THE ENGAGEMENTS OF THE LENDER FOR USE
Art. 15. The lender cannot take back this thing lent, but after the time agreed on; or if no agreement has been entered into in that respect, after it has been employed to the use for which it was borrowed.
Art. 16. Nevertheless if, during the interval, or before the borrower has done with the thing, the lender be in an urgent and unforeseen need of his thing, the judge may according to circumstances, compel the borrower to return it to him.
Art. 17. If during the loan, the borrower was obliged, for the preservation of the thing, to go to some extraordinary expence necessary, and so urgent, that he could not give notice of the same to the lender, the lender shall be bound to reimburse him for the same.
CHAPTER II – OF THE LOAN FOR CONSUMPTION OR MUTUUM
SECTION I – OF THE NATURE OF THE LOAN FOR CONSUMPTION
Art. 18. 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.
Art. 19. By the effect of this loan, the borrower becomes the owner of the thing lent; and if it be destroyed, in whatever manner the same may have happened, the loss is on his account.
Art. 20. Any thing which is such that it may be returned of the same kind and quality, may be given as a loan for consumption, but things which although of the same kind, still may differ from each other in quality, as beasts and the like, cannot be lent after this manner.
Art. 21. The obligation which results from a loan of money, can never be more than the numerical sum mentioned in the contract.
If there has been augmentation or diminution in the value of the species before the time of the payment, the debtor is bound to return nothing more than the numerical sum which was lent to him, in such species as has currency at the time of the payment.
Art. 22. The rule in the preceding article does not take place if the loan has been made in bullion.
Art. 23. If provisions have been lent, whatever be the increase or diminution of their price, the debtor is still bound to return the same quantity and quality and he is bound to return no more.
SECTION II – OF THE OBLIGATIONS OF THE LENDER FOR CONSUMPTION
Art. 24. The lender is answerable for the defects of the things which he lends, when they are not fit for the use to which they were intended, as if the money be counterfeited or the corn spoiled.
Art. 25. The lender cannot claim the thing lent before the time agreed on.
If no term has been agreed on for the restitution, the judge may grant a delay according to the circumstances.
Art. 26. No delay shall be granted if the loan has been stipulated as exigible at will.
Art. 27. If it was agreed only that the borrower should pay when he could or when he should have the means so to do, he ought to be sentenced to pay as soon as he appears to be able so to do.
SECTION III – OF THE ENGAGEMENTS OF THE BORROWER FOR CONSUMPTION
Art. 28. The first engagement of the borrower is to return the things lent in the same quantity and quality and at the time appointed.
Art. 29. If it be impossible for him to fulfil his engagement, he is bound to pay the value of the things lent, taking into consideration the time and place when they ought to have been returned according to the agreement.
If said time and place have not been regulated, the payment is made according to the rate of the time and place where the demand is made.
Art. 30. If the borrower does not return the things lent or their value at the time appointed, he shall be bound to pay interest from the time that a judicial demand of it has been made.