Legal Question in Banking Law in Illinois
Borrowing from a friend
Hi,
Due to some urgent need, I want to borrow around 10000 dollars from my friend. Is there any legal complication in doing so according to the US federal law? Also, do banks allow such transfer of money?
1 Answer from Attorneys
Re: Borrowing from a friend
You do not need to pay taxes on the $10,000 if you are going to pay it back. Banks have no right to prevent your friend giving you money, and I would be curious to hear what makes you think otherwise.
There are some legal issues that come up if your friend wants to charge interest or take your property as collateral. I would have to speak to you to give advise on that subject.
Your friend is doing you a big favor... I hope you have a written contract detailing when everything should be paid back.
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