Hi,
Once a debt is fully re-paid, the lender is not permitted to hold on to the loan document, even where the borrower trusts him and does not demand it, and even where the has lender provided a receipt. We are concerned that keeping the document may lead to inappropriate claims on the borrower in the future.
(Pitchei Choshen, Halvaah 2:39-40)
Have a great day,
Mordechai
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