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.
LoanLoan for Exchange
Section § 1902
This law describes a type of agreement where you give someone your personal belongings, like jewelry or furniture, and they promise to give you back something similar later on. It's important to note that they aren't paying you for using your stuff in the meantime.
loan for exchange personal property similar return
Section § 1903
This law says that if a lender lets a borrower decide whether to use a loan for personal use or for trading it for something else, the loan must follow all the rules in this chapter.
A loan, which the borrower is allowed by the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this Chapter.
loan for use exchange loan lender's option
Section § 1904
When you loan something to someone in a way that transfers ownership to them, they have to cover all its costs and they get to keep any benefits it produces.
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.
loan for exchange title transfer borrower responsibilities
Section § 1905
This law states that if you borrow something to trade, the lender cannot make you meet your obligations at a different time or in a different way than you both originally agreed upon.
A lender for exchange cannot require the borrower to fulfill his obligations at a time, or in a manner, different from that which was originally agreed upon.
lender borrower obligations
