Legal Question in Credit and Debt Law in Oregon

Re: Borrowing

The first rule is never loan money to a friend unless you don't care if the money is repaid or you don't care if you lose the friend. Beyond that there is not much else. There should be some written memorilaization of the transaction and the terms (i.e. interst rate, repayment scheudle etc...). If you want added assuarance that you will be repaid you could request a security interest. Some non-possesory security interest must be recorded. The fact that you freind is coming to you is some indication that he/she can not get financing from traditional sources. I think you are taking a gamble and it is important to assess the value of the friendship. (Sorry about being cynical, but I'm a lawyer)