Legal Question in Credit and Debt Law in Virginia
Invoking a ''due on demand'' clause for an unsecured personal loan of $4K
I loaned $4,000 with an unsecured note using standard language I got off the net. The loan agreement was signed, notarized and I have the original. The applicable jurisdiction is identified as Virginia as I live in VA and the borrower although living in FL used a valid VA driver's license as the proof of identity for the notary public. I believe the VA address is their permanent address. The loan agreement has a clause ''The entire unpaid principal and any accrued interest shall be immediately due and payable on demand by lender.''
How do I go about invoking the due on demand clause? Do I need an attorney or can I just send a certified letter? What does immediately mean? A week, or 2, 30 days? Should I use a collection agency?
Do I have to have a reason to demand immediate repayment or can I just invoke the clause?
If I have to sue to recover, is VA the right place to go?
Is this something I try on my own, or do I need to just hire an attorney and get it over with?
2 Answers from Attorneys
Re: Invoking a ''due on demand'' clause for an unsecured personal loan of $4K
It is difficult to advise without seeing the actual note. "Immediately" can mean different things...more likely a week than 2 days or 30.
Sometimes people respond differrently when a lawyer writes a demand letter. It might be worthwhile to discuss this with an attorney.
Re: Invoking a ''due on demand'' clause for an unsecured personal loan of $4K
You could certainly attempt to enforce the note on your own but it very likely would be worth your while to consult with an attorney for an hour or so of his or her time who would undoubtedly be able to impart to you a few useful
"pointers" regarding the matter.
It should also be noted that merely because a
contract gives the lender the unfettered right to
"call the subject loan" or, as you say, invoke the due on demand notice, that it would necessarily make good sense to do so in a particular situation.
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