My question involves personal finance in the State of: California
In the past I have made personal loans to relatives, friends, and friends of friends. Have to say that I have been lucky that 90% of the time I get repaid in the full amount, at the time they asked for a loan from me I made them signed a paper indicating that they received a personal loan from me in which outlines on how much money they received, expected date of repayment, and the date it was received with signature. I also request to give me a copy a valid driver license and social security. There were some occasions in where I was not able to recover my money due to lack of security deposit (signed car title, property title, or payroll check stubs). In those transactions I did not specify in the contract that they had to repay me back the full amount with 15% fee in which majority were made in installment payments. I was told by a legal source that I cannot get in trouble for lending money with interest rates since the borrower agreed to my terms and conditions. Is this statement is true? Since I have lost some money in the past (just the loan with no interest) I generate my own personal contract in which I ensure the terms are outlined asking the borrower to give a security deposit (signed auto loan, signed house loan [no lien or hold in neither loan], jewelry with specific outlined and valued by a jeweler, personal electronics that must exceed more than the loan asked). Is that legal to do? If so what can I do to improve the terms of the contract as posted below?
Personal Loan Contract
THIS AGREEMENT is made on the date of _________________ between:
(Borrowing party)_______________________ residing at (if address is different from identification card):
__________________________________________________ __.
(Lending Party): residing at:
IN CONSIDERATION of the advance of funds under the terms and conditions of this Agreement and other goods and valuable consideration, the Parties agree as follows:
On the execution of this Agreement the Lending party agrees to lend to the “Borrowing Party” the sum of $________•cash, on the terms and conditions set out in this Agreement. The full amount will be fully repaid by the date ____________. • An extension was requested by (Borrowing Party) _______ dated on ________, new contract expiration date is set on ________. •2nd extension date _____,•3rd _______
The Borrowing Party agrees to pay the full loan amount in which will be made • monthly installments or • fully repaid on or before expiration of the contract. Installment payments must be made on the exact same day the agreement was made , in case the borrower cannot make the payment at the time of demand, the borrowing party must notify the lender regarding of a late payment will be made and as well must give a specific date on when the late payment will be made and how will it be made (deposit to the lenders personal bank account or personally). The borrowing party must provide the lending party a copy of two most recent paycheck stubs (must be company payroll), valid California or State driver license, and social security card. As a form of guarantee the Borrowing party must provide the Lender a form of property security deposit in which must be the following (A checked box indicated that the Borrowing party has given the Lending party a security deposit):
• Signed car title/• property deed (the automobile must be paid off, must be under the Borrowers name, cannot have a hold, lean, or is salvage on the title, and must be valued higher than the amount borrowed). *Property deed cannot have a lien, must be under “borrowing party” name.
• Personal electronics (gaming console or television)
• Jewelry (inventory will be made on what specific items were handed over from the Borrower to the Lender in which will be documented and signed by both parties)
The “Borrowing Party” gives the “Lending Party” the right to sale/confiscates the borrower’s security deposit if the payment is not fully repaid at the time contract expires. If an extension is request the “Borrowing party” must notify the “Lending party” with anticipation; the “Lending Party” can either deny or approve the extension of the contract. If the extension is made the installment payment shall be made on the same exact dates the contract was executed. If the “Borrowing Party” does not provide a security deposit to the “Lending Party”, the “Lending party” has the right proceed with court procedures in which the “Borrowing Party” will be responsible to pay any attorney (fees if involved), court fees, and as well the amount of money that was lent. If the case is in favor of the lending party, the lender can proceed with further legal actions such as Bank levy, lien on auto/property title(s), or levy execution on the debtor’s wage . At the expiration of the contract (if the amount is fully paid) the “Lending Party” will surrender all copies of personal paperwork provided (Identification, social security, signed titles, and/or paycheck stubs) to the “Borrowing Party”.
___________________________ ___________________________
Borrowing Party Signature (Date) Lending Party Signature (Date)
___________________________
Witness Signature (Date)
• All documentation that was provided at the time contract was executed has been handed back to the “Borrowing Party” on ___________. “Borrowing Party” Initials: __________
Example: If the contract was made on July 1st the first payment is due on or before August 1st. Extensions are made on monthly dates or before.
If a deposit is made to the lenders account the payment must be in personal check/money order (Borrowers information must be written in the from section and as write personal loan payment# in the memo section, payment must be payable to the lenders name.
Title of the auto cannot be under a third party name, the auto must have a market value that exceeds the loan amount by 20% or greater (ex: if loan was $5,000 the value of the car must be $6,000). If the loan is not fully repaid the Lending party, the automobile is surrendered (keys and spare keys must be handed over) by the lending party in which the property has now become the Lending Party’s possession.
Electronics must have a higher market value than the loan amount. Electronics must have a readable serial number in which will be documented in order to ensure the same property is handed back to the owner at the time the contract is terminated.
Jewelry must be valued by a professional jeweler, once the jewelry is valued and handed over to the lender , the borrower shall fully write down exactly what was handed over at the time and as well the value amount. Property will be handed back to the “Borrower” if the borrowed amount is fully repaid on or before the contract is expired.
These procedures are legal as per the State of California laws. Once the debt is paid the Lender shall sign and submit Acknowledgment of Satisfaction of Judgment form to the local courts.
In the past I have made personal loans to relatives, friends, and friends of friends. Have to say that I have been lucky that 90% of the time I get repaid in the full amount, at the time they asked for a loan from me I made them signed a paper indicating that they received a personal loan from me in which outlines on how much money they received, expected date of repayment, and the date it was received with signature. I also request to give me a copy a valid driver license and social security. There were some occasions in where I was not able to recover my money due to lack of security deposit (signed car title, property title, or payroll check stubs). In those transactions I did not specify in the contract that they had to repay me back the full amount with 15% fee in which majority were made in installment payments. I was told by a legal source that I cannot get in trouble for lending money with interest rates since the borrower agreed to my terms and conditions. Is this statement is true? Since I have lost some money in the past (just the loan with no interest) I generate my own personal contract in which I ensure the terms are outlined asking the borrower to give a security deposit (signed auto loan, signed house loan [no lien or hold in neither loan], jewelry with specific outlined and valued by a jeweler, personal electronics that must exceed more than the loan asked). Is that legal to do? If so what can I do to improve the terms of the contract as posted below?
Personal Loan Contract
THIS AGREEMENT is made on the date of _________________ between:
(Borrowing party)_______________________ residing at (if address is different from identification card):
__________________________________________________ __.
(Lending Party): residing at:
IN CONSIDERATION of the advance of funds under the terms and conditions of this Agreement and other goods and valuable consideration, the Parties agree as follows:
On the execution of this Agreement the Lending party agrees to lend to the “Borrowing Party” the sum of $________•cash, on the terms and conditions set out in this Agreement. The full amount will be fully repaid by the date ____________. • An extension was requested by (Borrowing Party) _______ dated on ________, new contract expiration date is set on ________. •2nd extension date _____,•3rd _______
The Borrowing Party agrees to pay the full loan amount in which will be made • monthly installments or • fully repaid on or before expiration of the contract. Installment payments must be made on the exact same day the agreement was made , in case the borrower cannot make the payment at the time of demand, the borrowing party must notify the lender regarding of a late payment will be made and as well must give a specific date on when the late payment will be made and how will it be made (deposit to the lenders personal bank account or personally). The borrowing party must provide the lending party a copy of two most recent paycheck stubs (must be company payroll), valid California or State driver license, and social security card. As a form of guarantee the Borrowing party must provide the Lender a form of property security deposit in which must be the following (A checked box indicated that the Borrowing party has given the Lending party a security deposit):
• Signed car title/• property deed (the automobile must be paid off, must be under the Borrowers name, cannot have a hold, lean, or is salvage on the title, and must be valued higher than the amount borrowed). *Property deed cannot have a lien, must be under “borrowing party” name.
• Personal electronics (gaming console or television)
• Jewelry (inventory will be made on what specific items were handed over from the Borrower to the Lender in which will be documented and signed by both parties)
The “Borrowing Party” gives the “Lending Party” the right to sale/confiscates the borrower’s security deposit if the payment is not fully repaid at the time contract expires. If an extension is request the “Borrowing party” must notify the “Lending party” with anticipation; the “Lending Party” can either deny or approve the extension of the contract. If the extension is made the installment payment shall be made on the same exact dates the contract was executed. If the “Borrowing Party” does not provide a security deposit to the “Lending Party”, the “Lending party” has the right proceed with court procedures in which the “Borrowing Party” will be responsible to pay any attorney (fees if involved), court fees, and as well the amount of money that was lent. If the case is in favor of the lending party, the lender can proceed with further legal actions such as Bank levy, lien on auto/property title(s), or levy execution on the debtor’s wage . At the expiration of the contract (if the amount is fully paid) the “Lending Party” will surrender all copies of personal paperwork provided (Identification, social security, signed titles, and/or paycheck stubs) to the “Borrowing Party”.
___________________________ ___________________________
Borrowing Party Signature (Date) Lending Party Signature (Date)
___________________________
Witness Signature (Date)
• All documentation that was provided at the time contract was executed has been handed back to the “Borrowing Party” on ___________. “Borrowing Party” Initials: __________
Example: If the contract was made on July 1st the first payment is due on or before August 1st. Extensions are made on monthly dates or before.
If a deposit is made to the lenders account the payment must be in personal check/money order (Borrowers information must be written in the from section and as write personal loan payment# in the memo section, payment must be payable to the lenders name.
Title of the auto cannot be under a third party name, the auto must have a market value that exceeds the loan amount by 20% or greater (ex: if loan was $5,000 the value of the car must be $6,000). If the loan is not fully repaid the Lending party, the automobile is surrendered (keys and spare keys must be handed over) by the lending party in which the property has now become the Lending Party’s possession.
Electronics must have a higher market value than the loan amount. Electronics must have a readable serial number in which will be documented in order to ensure the same property is handed back to the owner at the time the contract is terminated.
Jewelry must be valued by a professional jeweler, once the jewelry is valued and handed over to the lender , the borrower shall fully write down exactly what was handed over at the time and as well the value amount. Property will be handed back to the “Borrower” if the borrowed amount is fully repaid on or before the contract is expired.
These procedures are legal as per the State of California laws. Once the debt is paid the Lender shall sign and submit Acknowledgment of Satisfaction of Judgment form to the local courts.
Personal Investment: Personal Loan Contract
Aucun commentaire:
Enregistrer un commentaire