Mishnayos Bava Metzia Perek 3 Mishnah 1

In the case of one who deposits an animal or vessels with another, who is acting as an unpaid bailee, and they were stolen or they were lost, and the bailee paid the owner the value of the deposit, and did not wish to take an oath that he did not misappropriate the item and that he was not negligent in safeguarding it, that will effect who keeps the deposit if it is found or returned. The bailee may also choose to take the oath, as the Sages said: An unpaid bailee takes an oath, and he is thereby released from the liability to pay the owner. If the thief is later found, the thief pays the double payment. If the deposited item was a sheep or an ox and the thief slaughtered or sold it, he pays the fourfold or fivefold payment. To whom does the thief pay? He gives the payment to the one who had the deposit in his possession when it was stolen, i.e., the bailee. When the bailee paid the owner for the stolen item, the owner granted the rights to the item to the bailee. Therefore, the bailee is entitled to any payment the thief presents for the item, be it compensation for the item’s value or a fine. In the case of a bailee who took an oath and did not wish to pay, if the thief is then found and required to pay the double payment, or if he slaughtered or sold the animal and is required to pay the fourfold or fivefold payment, to whom does the thief pay? He gives the payment to the owner of the deposit, not the bailee.