A loan that must be paid on demand from the lender. Demand loans are often used to fund margin accounts; alternatively, they are common for personal loans with no set maturity. Demand loans often require collateral and are also called call loans. See also: Margin call.
A loan that states it is due upon demand, rather than on any certain date or upon the happening of a certain event.For purposes of calculating the statute of limitations within which to sue on a demand loan,it is treated as if demand were made and default occurred on the very first day the loan was made,even if that did not truly happen in fact.
(26) On the issues of the timing and valuation of the gift, the majority opinion stated: "The taxable gift that assertedly results from an interest-free demand loan is the value of receiving and using the money without incurring a corresponding obligation to pay interest along with the loan's repayment.
5 December 2011 - CRISIL today assigned a BBB- rating with a "stable" outlook to the INR650m (USD12.7m/EUR9.4m) working capital demand loan of Indian real estate developer Dharmadev Infrastructure Ltd.
21 November 2011 - CRISIL on Friday retained its A+ rating with a "stable" outlook on the INR150m (USD2.9m/EUR2.1m) cash credit, interchangeable with the working capital demand loan of Indian car dealer TAFE Access Ltd.
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