II.   Instruments & Transactions

A Loan is a formal Instrument issued under the Corporate Securities standards of instruments and writing first formed under the Westminster laws of Great Britain from the 18th Century as a Bailment of a sum of real money for a specific purpose upon terms which the parties have agreed. Hence, one of the definitions of Bail is a “Loan”.

The following essential elements distinguish a valid Loan since the creation of the concept from the mid-18th Century, firstly to Government. A transaction which breaches one or more of these elements cannot be considered a valid Loan, but a misrepresentation, or deliberate falsity:

(i) A valid Loan is always a Bailment and therefore an assignment of control and custody in trust and is never to be considered a debt, or penal sum, or sum, or lease, or advance, or gift, or pawn. Hence, the one who receives the Loan is the Loanee and therefore a Bailee and Trustee; and

(ii) A valid Loan is always for real (Public) Money and never for Credit, or Shares or Certificates or Private Notes or any other internal accounting unit; and

(iii) The real (Public) Money from which the Loan is derived must already exist and be associated with a valid Fund, administered according to certain rules; and

(iv) As a Bailment, a simple interest fee may be charged for the Loan with periodic payments of the interest, but never compound interest.

In terms of the legal history of Loans:

(i) All claims to references of Loans prior to the 18th Century in statutory law of Westminster is a fraud (i.e. 35 H8.c.12); and

(ii) The first reliable reference to Loans was in 1752 and (25Geo2.c.25) following the extended functions of the Sinking Fund whereby the Government created a Loan to cover part of its annual expenditure, granted from the Sinking Fund and insured by Debentures issued and purchased by the Bank of England against the Duties owed into the Sinking Fund; and

(iii) In 1823, (4Geo4.c.32), an act was introduced permitting Charitable Loan Societies to operate in Ireland and in 1835 the first commercial loan societies were permitted under (5&6Will4.c.23) and in 1836 (6&7Will4.c.55) in Ireland.