Title Second: Loan for Consumption

Article 754

Article 754 - A loan for consumption is a contract by which one party delivers to another person money or other fungible things, on the condition that the borrower returns to him the same amount of the same species and quality, at the expiration of the agreed term.

Article 755

Art. 755 - There is a loan for consumption when the creditor of a sum of money or a quantity of fungible goods, by reason of a deposit or any other title, authorizes the debtor to retain, by way of loan, the sums or goods that he owes.

Article 756

Art. 756 - To lend, one must have the capacity to alienate the things that are the subject of the loan.

Article 757

Art. 757 - The loan for consumption may have as its object all kinds of movable fungible goods, whether consumable or not by first use.

Article 758

Article 758 - When, instead of the value stipulated in currency, the borrower receives income securities or other securities or goods, the sum loaned is calculated at the course or price of the securities or goods, at the time and place of delivery. \tAny contrary stipulation is null.

Article 759

Art. 759 - The borrowed items become the property of the borrower and remain at his risk.

Article 760

Art. 760 - The lender is liable for hidden defects and eviction of the lent things, in accordance with the rules established under the title of sale.

Article 761

Art. 761 - The borrower must return a thing similar in quality and quantity to that which he received.

Article 762

Article 762 - The borrower cannot be compelled to restore what he owes before the term established by the contract or by usage; he may restore it before maturity, unless the restoration before the term is contrary to the interest of the creditor.

Article 763

Art. 763 - If no term has been fixed, the borrower must restore at the request of the lender. If it has been agreed that the borrower would pay only when he is able to or has the means to do so, the lender may request the judge to set a term for payment.

Article 764

Art. 764 - Unless otherwise agreed, the borrower is required to return the lent item at the place where the loan was concluded.

Article 765

Art. 765 - The costs of receiving and returning the borrowed items are borne by the borrower.

Article 766

Art. 766 - In a consumption loan, interest is not due unless it has been stipulated. However, the borrower who has spontaneously paid unstipulated interest or interest exceeding that which has been stipulated, may not reclaim it or set it off against the capital.

Article 767

Article 767 - When the parties have stipulated interest without fixing the rate, the borrower must pay interest at the legal rate. In civil matters, the rate of stipulated interest must be fixed in writing when it exceeds the legal interest; if it has not been fixed in writing, interest is only owed at the legal rate (See Article 1 of the Law of June 24, 1939 relating to the felony of usury).

Article 768

Art. 768 - The interest on capital may produce interest, either by a judicial demand, or by a special contract subsequent to their maturity, provided that, either in the demand or in the contract, it concerns interest due for at least six months, unless otherwise stipulated by special rules and customs applicable to commerce.