Legal Question in Consumer Law in California

Personal Loan (Friends + Family)

What are the legal regulations governing a personal loan FROM friends TO my family, in the amounts of USD$100,000?

(Assuming they have both signed a promisorry note illustrating all the terms) DO they need a license?

Note: I will not be participating in the loan, just bringing the two together. What ACTS affect me, my friend and my family? Thanks!!!!!


Asked on 9/09/06, 3:04 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Personal Loan (Friends + Family)

Some of the laws you need to be concerned about are usury, fraudulent conveyances, and lien law. The people loaning the money are nuts if they enter into this transaction without the assistance of an attorney. But I guess that is their business. Your parents should have an attorney review their loan documents before signing anything.

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Answered on 9/09/06, 5:43 pm


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