Loan of money

A loan of money is granted by anyone who concludes a loan agreement under private law within the meaning of Section 488 of the German Civil Code (BGB) or a comparable agreement under foreign law as a lender. Even a person who concludes a tentative loan contract is, from a regulatory point of view, already engaged in the lending business. – The sums of money must be repayable. Lost grants (subsidies) are therefore not loans within the meaning of the KWG. – The repayment claim must be denominated in money. A borrower who lends money but is to receive securities, property or rights back at the end of the term does not conclude a loan agreement within the meaning of Section 488 of the German Civil Code (BGB). – However, the agreement that the borrower has the right to refer the lender to satisfaction from the items provided by way of security after expiry of the term of the agreement or any other substitution power granted contractually in favor of the debtor does not preclude a loan agreement as long as the repayment claim is basically in money. Nor does the subsequent agreement to repay a loan debt by the delivery of securities, property or rights retroactively invalidate the operation of the loan transaction. – Furthermore, it is irrelevant with regard to the facts, in particular, – whether interest is stipulated, – whether the lender has to disburse the amount of money to a third party on the borrower’s instructions, – the type and extent of the collateralization and – whether the lending of money is refinanced with borrowed funds or backed by own funds. – See asset transaction, annuity loan, employer loan, borrowing, loan, investment loan, spread of terms, credit, line of credit, term loan, securitization, interest rate, submission.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/