Legal Question in Credit and Debt Law in California

hello,im ryan from monterey california, i have a several friends that ask me if i can lend them a money obcourse with an interest involved,for what i read u can lend your own money directly to borrowers without a license (as long as you comply with all applicable lending laws) is this true,is there a limit of people u can lend it to??also im just wondering what type of promissory note i can used to protect me from the borrowers? also advised will be appreciated..thank you and hope to hear from you soon.


Asked on 1/30/13, 10:30 am

1 Answer from Attorneys
Charles Perry Law Offices of Charles R. Perry

There is no law requiring you to have a license before making loans to friends. A promissory note also does nothing to protect you from your borrowers -- it just provides written evidence as to the amount of the loan, the interest rate, and the other terms. I do not have a form to recommend to you, but you will undoubtedly find any number of templates if you do some research. Some forms are better than others, so you should choose carefully.

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Answered on 1/30/13, 10:59 am


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