A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity.

①Notwithstanding the provisions of the preceding Article, a loan for consumption made in writing becomes effective when a first party promises to deliver money or any other thing to a second party and the second party promises to return a thing of the same type, quality, and quantity as the thing delivered to the second party.

②The borrower of a loan for consumption made in writing may cancel the contract until the borrower receives the money or other thing from the lender. In such a case, if the lender sustains any damage from the cancellation of the contract, the lender may claim compensation.

③A loan for consumption made in writing ceases to be effective if either of the parties receives an order commencing bankruptcy proceedings before the borrower receives the thing such as money from the lender.

④If a loan for consumption is made by means of an electronic or magnetic record in which its content is recorded, the loan for consumption is deemed to have been made in writing, and the provisions of the preceding three paragraphs apply thereto.

If any person has an obligation to pay money or deliver other things under any arrangement, and the parties agree to regard the thing as the subject of a loan for consumption, it is deemed that this establishes a loan for consumption.

①In the absence of any special agreement, the lender may not demand interest from the borrower.

②If there is any special agreement referred to in the preceding paragraph, the lender may demand from the borrower interest that accrues from the day on which the borrower receives the thing such as money.

①The provisions of Article 551 apply mutatis mutandis to a loan for consumption without a special agreement referred to in paragraph (1) of the preceding Article.

②Irrespective of whether there is any special agreement referred to in paragraph (1) of the preceding Article, if the thing delivered from the lender does not conform to the contract terms with respect to the kind or quality, the borrower may return the value of the delivered thing.

①If the parties do not define the time for return of borrowed things, the lender may demand their return, specifying a reasonable period of time.

②The borrower may return the borrowed thing at any time, irrespective of whether the parties have defined the time of return of the thing.

③If the parties defined the time of return of the borrowed thing, and the lender sustains any damage because the borrower returns the thing before the time of return, the lender may claim compensation from the borrower.

If the borrower has become unable to return things in the same kind, quality and quantity as that of the things the borrower received from the lender, the borrower must reimburse the current value of the things; provided, however, that this does not apply in the cases provided for in Article 402, paragraph (2).