Of what consists the loan? | ScriptaLegal
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Of what consists the loan?

The dictionary defines the loan as "a contract by which a thing is delivered with a charge of restitution". The Civil Code of Quebec specifies as for it, in its section 2327, that "... the borrower becomes the owner of the property loaned and he bears the risks of loss of the property from the time it is handed over to him". Because it is a loan and not a gift, sale or assignment, the Civil Code of Quebec clearly indicates, in its section 2329: "The borrower is bound to return the same quantity and quality of property as he received and nothing more". The rules apply as much for your jigsaw, lawn mower (although, in these cases ...) as for a loan of money. In this last case, the Civil Code of Quebec obviously acknowledges that the amount of money loaned bears interest.

You negotiate the hypothecary loan (also known as mortgage loan) with the financial institution of your choice, afterwards this latter will send to the chosen notary a mandate containing the information necessary for the preparation of the deed of hypothec. It is this deed which will be signed before the notary and will be published in the land register in order to make it public and opposable against third parties.

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