Foreign loan. A loan issued by a foreign government in the form of bonds or other certificates of
debt, such as exchequer bills or notes, treasury bills or notes, etc.  The term foreign loan also is
applied to a loan obtained in a foreign country by a corporation, firm or individual. In the case of
such a loan the usual practise, if security is to be provided, is for the borrower to draw against the
loan and to accompany the draft with collateral which may be securities (stocks or bonds) or
documents (bills of lading, warehouse receipts, etc).