Although the German Act to Modernize the Law of Obligations in respect of the law of loan contract concerns mainly about the incorporation of the Consumer Credit Act 1991 into the German Civil Code, especially emphasizing on the consumer protection, it also establishes the genenal principles of the law of loan contract. This new regulation is not only very useful for the protection of creditor of the loan contract, but also for the preparation of moderization of Taiwan's Law of Obligations in the future.