Legal Question in Business Law in Kentucky

Re: loan agreement

Well, if I am reading your question correctly - consider this: if your friend is going to default on a bank loan how could a simple contract keep him or her from defaulting on you? There is only one way to get real protection against default on a loan and that is to get a security interest in some property your friend owns by filing a lien. This can be tricky and if not done correctly, the lien may be faulty and still not protect you.