(M634) In Assyrian documents no examples of this kind of transaction are
found. Nor are any very clear examples producible from later Babylonian
times. But it must not be overlooked that some cases, where a receipt is
given for a sum or quantity of goods, without mention of interest to be
paid, may very well be acknowledgments of a deposit; they have usually
been taken to be loans.
XXIV. Pledges And Guarantees
(M635) Very little is known about pledges in early times, though Meissner
had argued for their existence from certain passages of the series _ana
ittišu_, such as “on account of the interest of his money he shall cause
house, field, garden, man-servant, or maid-servant, to stand on deposit”;
followed later by, “if he bring back the money he can re-enter his house;
if he bring back the money, he can plant his garden again; if he bring
back the money, he can stand in his field; if he bring back the money, he
can take away his maid; if he bring back the money, one shall return his
slave.”(684) Consequently the creditor held the pledge in his possession
until the loan was returned, when he had to give it back. The pledges here
mentioned are antichretic, that is, such that they produce an income or
return to the holder, which is a set-off against the interest of his
money.
(M636) The Code recognizes the taking of property in satisfaction of a
debt.(685) But this is rather a process of distraint upon the goods of the
debtor, in case of non-payment, than a case of pledge. Since it was
usually expected that the property so taken would be returned on payment
of the debt, we can hardly distinguish it from pledge. Indeed, where a
debtor gave up his wife, child, or slave to work off a debt, we have a
case of antichretic pledge for the debt and interest.
(M637) In times subsequent to the First Babylonian Dynasty, the pledge is
common. As a rule, it is antichretic, such that income or profit derived
from the pledge is a fair equivalent for the interest of the loan. The
lender acquires the right of enjoying the pledge. As a rule this is
assigned him absolutely, so that no account is needed to be kept of
interest on one side and profit on the other. If the profit exceeds the
interest due, the excess may be returned, or it may be credited towards
the discharge of the debt. If the interest exceeds the profit on the
pledge, then the amount by which the loan exceeds the capitalized profit
must pay interest.
(M638) In Assyrian times loans on security are fairly common. Here also we
have antichretic loans, where the profit on the pledge was a set-off
against the interest of the money. The pledge is expressly stated to be
“in lieu of interest.” But it seems that the property was often expected
also to extinguish the debt. Or it was merely pledged, as a security,
which the creditor would keep in case he could not get his money back. We
may illustrate these by examples:(686)
(M639)
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