Legal Question in Business Law in Texas

Promissory Note/Loan

I lent a friend 1,000 to help get his business set up. He lives in Las Vegas, NV. We are no longer on speaking terms and he said to get with an attorney and get some sort of paperwork set up and he will sign in with 5 1/2 percent interest. Do I have to give him a time frame of when I want this money back? Him and his mother knew that this was only a loan so do I have legal backing by presenting a receipt of what I have put down for his and his mother's company? Please let me know what the law reads. I live in Texas. Thank you for your attention on this matter.


Asked on 7/03/03, 12:25 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Promissory Note/Loan

If you borrow money from a bank or some other lender, they let you know when they expect it to be repaid. Why should you be different? You are entitled to interest on the money you loaned, as well.

See over what period your friend wishes to pay you back, agree on when the interest started, and when the first payment will be made. Those terms will define what will be needed in a promissory note. Then, if he fails to pay, you will be able to sue him on the note for the unpaid balance.

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Answered on 7/03/03, 12:41 pm
Basil Hoyl Law office of Basil Hoyl

Re: Promissory Note/Loan

You will want a promissory note, and if you can get a secured note with a security agreement (and UCC-1) that would be even better. However, as it seems you made an unsecured loan, he will probably only agree to an ordinary promissory note. You should be able to find a form somewhere if you do not wish to have an attorney draw one. This form will probably cost in the neighborhood of $75 from most attorneys.

http://www.reasonable-doubt.com

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Answered on 7/03/03, 1:01 pm


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