Legal Question in Investment Law in Maryland

I loaned someone 30K and I have a signed promissory note. We agreed they would make monthly payments of $700 for 6 mos. and the full amount with 15% interest was to be paid in 6 mos. It has been 16mos. since the original agreement was signed and I need some direction about my options of pursuing recovery of the funds. Two payments of $700 and 1 payment $500 has been received. I have a copy of the promissory note and a copy of the signed check. The person owns a small business and is self employed, married and we both live in MD. They communicate with me via text message and write message like I am working on something to take care of you soon. I will explain more when the time is right. I am not trying to hurt you and things just didn't work out like I planned but you will be taken care of. I have several similar messages from them over this time frame. I have not filed a judgement. Also, I a partner is listed on the articles of incorporation for the business.


Asked on 2/11/11, 6:36 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

Hello and thanks for your post. Your legal rights will depend on the language of your loan documents. You may want to have an attorney review those to verify the terms of default and what notice, if any, you must give before filing suit. It is not clear from your post whether the individual took out a loan in their own name or in the name of the business. The borrower's circumstances may affect your ability to collect on any judgment.

You describe an interest rate of over 30% per annum -- note that Maryland law does put some limitations on the amount of interest a lender can charge in a non-commercial setting but an attorney would need to know more about the purpose of the loan.

(The fact that the business has multiple owners is irrelevant unless the other business owner signed a guarantee). While I hope the above post helps, it is not a substitute for legal advice and I encourage you to consult with an attorney about your options.

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Answered on 2/11/11, 6:46 am


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