Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
Sometimes, people seek money lending through methods other than the traditional bank, credit union or professional financial business. Some people use payday lenders and vehicle title holding loans, which have persisted through attempts at increased regulation on the state and local level. People may also find themselves in a situation where they are forced to reach out to friends and family for loans.
Loan agreements do not have to be in writing. A verbal loan agreement can be binding, but obviously leaves gaps in the details. These omissions can lead to misinterpretations.
A good loan agreement will address repayment timing, interest, and ramifications of non-payment. Even for a loan among family members or friends, a lawyer should prepare the agreement to make sure it includes all of the relevant terms and conditions.
Life and love are often an unexpected voyage of personal and professional highs and lows. Sometimes, those lows can include financial shortfalls. Banks, credit unions and other professional financial businesses provide loans for people to get through the financially low time periods.
However, time constraints or other reasons sometimes prevent people from borrowing money through traditional methods.
Read more about loan agreements between family and friends in Lee’s article for the Lima News, “Legal-Ease: Formal and informal loans and repayment.”
Source: LimaOhio.com, “Legal-Ease: Formal and informal loans and repayment,” by Lee R. Schroeder, April 8, 2017.