Obligations of the Depositary

by Stephan Kinsella on November 18, 2011

in Austrian Economics

From the Louisiana Civil Code:

Art. 2931.  Use of the thing deposited

The depositary may not use the thing deposited without the express or implied permission of the depositor.

Consider this in light of advocates of fractional-reserve banking, who claim that the customer who lends money to a “bank” can naturally be referred to as a “depositor.” Really?

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