Words and Phrases - "borrowing"

In finding that securities issued by a corporation that were referred to in various corporate documents as "preferred shares" and were evidenced by share certificates nonetheless represented secured loans made to the corporation for purposes of the Winding-up Act of Canada, Graham E. J. noted that a lien was placed on the assets of the corporation to secure the payment of the amounts advanced and the interest or "dividends" thereon, with a power of sale in case of default and the right to redeem on the part of the corporation within a fixed time. With respect to statements in the deed that the interest or dividends were to be paid out of profits, Graham E.J. stated (at p. 145) that "practically the interest due upon a mortgage is only paid out of profits" and (at p. 145) he referred to the following statement in Kent v. Quicksilver Mining Co., 78 N.Y. 178:

"The idea of a borrowing is not filled out unless there is in the agreement therefor a promise or understanding that what is borrowed will be repaid or returned, the thing itself or something like it of equal value, with or without compensation for the use of it in the meantime. To borrow is the reciprocal action of to lend, and to lend or loan, say the dictionaries, is the parting with a thing of value to another for a time fixed or indefinite, yet to have some time an ending, to be used or enjoyed by the other, the thing itself or the equivalent of it to be given back at the time fixed or when lawfully asked for, with or without compensation for the use, as may be agreed upon."