Also known as: borrows · borrowed · borrowing · loan
Written by attorneys · grounded in primary & secondary sources — see below
An act of receiving money from another party upon an agreement to repay the principal, usually with interest.
Congress directs the Treasury to issue bonds to fund national infrastructure projects. Investors purchase the bonds and transfer funds to the federal government. The government receives the money on the credit of the United States and commits to repayment with interest according to the bond terms.
Bianca Blanco, a partner at a law firm, makes a personal loan to a judicial candidate's campaign. The contribution is structured as an advance that the candidate must repay if the firm later seeks government legal work. The arrangement triggers scrutiny because the loan was made to obtain consideration for an engagement.
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Congress charters a national bank to centralize bond sales and extend credit to state institutions. The bank receives funds from investors and lends them onward to support interstate commerce. The chartering enables execution of the federal power to borrow and regulate commerce.
Bharat Bhatia advances personal funds to cover a partnership trade debt after the firm lacks cash. The payment creates a loan obligation from the partnership to Bharat. The partnership must repay the advance with interest accruing from the date of the payment.
Blue Horizon Industries grants a mortgage to secure both an initial construction loan and any later advances for site improvements. The lender later disburses additional funds for equipment purchases. The mortgage secures the future advances with the same priority as the original loan.
Boulder Construction authorizes its officers to issue bonds and borrow funds from institutional lenders. The corporation receives the proceeds and pledges corporate assets as security. The board resolution expressly grants power to incur the liability and secure repayment.
Borrowing requires an agreement or understanding that the funds will be repaid. A person who takes money intending to return it within a reasonable time and with ability to do so does not commit embezzlement. Unauthorized taking without repayment intent constitutes conversion instead.
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Yes. An advance that gives rise to a partnership obligation constitutes a loan that accrues interest from the date of payment. The partner becomes a creditor entitled to repayment ahead of profit distributions.
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A corporation possesses statutory power to borrow money and issue notes or bonds. The power may be exercised through officers when the action falls within usual business operations, though major borrowings typically require board approval under corporate governance rules.
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Article I Section 8 grants Congress the power to borrow money on the credit of the United States. This enumerated power supports issuance of bonds and other debt instruments to fund government operations and programs.
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…Gideon v. Wainwright , 372 U. S. 335, and Douglas v. California , 372 U. S. 353, ante , p. 473; the silent-record doctrine is borrowed from Carnley v. Cochran , 369 U. S. 506, ante , p. 475, as is the right to an express offer of counsel, ante , p. 471. All these cases imparting glosses to the Sixth Amendment concerned…