Chapter on Loans (1)

A loan is valid for anything whose sale is valid, with the exception of slaves. Ownership passes to the borrower as soon as he takes possession, and the obligation to repay becomes immediately due in his liability even if a later deadline has been stipulated.

If the borrower returns the very article he borrowed, the lender is obliged to accept it so long as it is a fungible commodity that has not changed—apart from copper coinage or broken currency that the ruler has removed from circulation; (2) in that case he must repay their value as it stood on the day the contract was concluded. A fungible item is repaid with its like, (3) and a non-fungible one with its value; if no exact substitute can be found, its value is then due.

It is forbidden to stipulate any condition that brings about an extra benefit. What is not forbidden is to confer a benefit without prior agreement, to repay with something better, or to give a gift after the debt has been settled—and even if he gives a gift (4) before repayment, it is unlawful unless he intends it to be counted toward the debt, or as reciprocation, or such gifting was already his regular custom with the lender (5) beforehand.

If the borrower is asked to deliver the repayment, or its equivalent, in another town, he must comply—except for items whose transport involves a cost; for those, he may instead pay their value, provided that their price in the town where the loan was contracted (6) is lower.