This Italian bank bond called a Luoghi represents one of the very early documents in the form of an interest bearing loan.

Of great importance this bond concerns financing by the famous De Medici family of Florence. The bond bears the Grand Ducal Arms of Ferdinand II of the Medici, as the Medici were great promoters of this type of bank.

This type of financial institution was started in the Middle Ages and was initially used to receive donations and bequests in wills and use these for charitable purposes. Under the directive of Pope Leo X, who was also a De Medici, these banks changed their purpose and accepted deposits on a commercial interest bearing basis to loan to the state or for a specific purpose. The real commercialization of these banks began under Ferdinand de Medici, under whose auspices this bond was issued to offer interest bearing bond to investors. It paid an interest of 4% per annum and is quite decorative with the Medici Coat-of Arms (with six spheres, which inspired the symbols outside today’s pawn shops) flanked by two representations of Jesus with six loaves of bread.

The bond is printed by copper engraving on vellum and has a paper seal embossed with the coat-of-arms of The Medici. Choice condition.                                                              $750 - up