Legal question about a personal loan?
Here's the deal: I loaned a guy $300 at christmas time. He gave me his Ruger M77 Mark II 25-06 for colaterial (sp?). He signed a piece of paper agreeing to repay $350.00 by Feb. 7, 2007 for the return of his gun. Now that it is Feb. 8, 2007 and I still haven't recieved his payment, is the gun now legally mine?
0
-
In essence what has been done is the rifle was sold to you; provided that the sale was legal, I'd say it is yours and there is no obligation to return it to the borrower even if he came up with the funds at a time after the default date. 0 -
Basically, if you want the money more ask him if he has any intention to repay. 0 -
Are pawnbrokers required to be licensed in your state? If so, then you made a pawn loan without one. 0 -
quote:Originally posted by nunn
Are pawnbrokers required to be licensed in your state? If so, then you made a pawn loan without one.
I'm not sure. I live in Ky. Here is a picture of it. I've never seen a synthetic stock with wood inlays before. Is this gun worth $350?
0 -
I'd say you're the proud new owner of a Ruger 25-06 and a pretty decent looking one at that![8D][;)] 0 -
And just think, "cubs" was just looking for one of these last week. Too bad he doesn't live in Ky. 0 -
I think you should make a formal demand for payment in writing and sent Certified Mail stating that if payment is not made within 10 days, the collateral will be forfited to you.
Pete0 -
The question is; How good a friend is he? 0 -
Yes, the rifle is yours. 0 -
It depends on how it is presented. In some states interest that high is usery. With the gun for collateral I don't know. Spend 50 with a local attorney and be safe. 0 -
It's all Bush's fault. 0 -
Posession is 9/10ths. Burn the note and keep the rifle. I personally wouldn't get too puffed up over the screwed on wood but the scope probably cost him nearly $100, the Ruger has to be worth the rest.
One hitch, if the rifle is stolen.0 -
ask judge judy for sure 0 -
quote:Originally posted by nunn
Are pawnbrokers required to be licensed in your state? If so, then you made a pawn loan without one.
That's certainly a good bit of information for one to know.0 -
quote:Originally posted by sarge_3ad
The question is; How good a friend is he?
...That's what you need to ask yourself. We loaned a friend a heck of a lot more than that, and offered it interest free. She insisted on paying interest and setting up a payment schedule. She fell behind, but we didn't push her, as she was really struggling. We knew she'd pay it back eventually, and she did. Good friend. How good is yours?0 -
I wound up with a mint Weatherby Patrician 12 ga. that way several years ago. Today I would have cut him some slack when he brought me the money late. I would ask myself this question, If it was me that lost my rifle, how would I want him to handle the deal? 0 -
..I'm w/sarge. If the guy is a friend, ask his intentions, to pay or not to pay.
...If he is a friend, give him the time he needs. If $300 bucks means so much to you as to destroy a friendship, you should not have made the loan to start w/as it would/is apparant you did not have the money to loan to begin with.
If he is not a friend, ask his intentions anyway, if the arrangenment is not to your liking...you now own a nice gun at a good price...[;)]0 -
If this was between me and you it would be a done deal.
Nunn's point is valid. you might have a problem.
I think I would keep my mouth shut and not say a word. I if the guy comes for it tell him you sold it to recover you loss. If he presses the issue tell him, the new owner doesn't really like it and is willing to sell it back for $335... and if he comes up with the kinkies, you'll retrieve the rifle...
But like I said, "If this was between me and you it would be a done deal". Maybe he is an old horse trader like me and a deal is a deal. I'd sure give him the benifit of the doubt and not offend him by calling and reminding him. Let him make the next move, cause it might never come......0 -
In most States that have usurious laws, the usurious interest does not void a contract---States prescribe a penalty for the error, but will not void the contract. And don't worry about being considered an unlicensed pawnbroker, that too will not void your contract. You should have placed it in writing, as part of the contract, stating that if payment is not received within the time limits, ownership changes to the lender.
I'm thinking the only way to remedy this is to send him a demand letter with a specific timeframe for repayment. State in the demand letter that if payment is NOT made by a date certain, then ownership will fall to you. It would have been best is that caveat had been part of the initial contract, where there would have been a meeting of the minds regarding a failure to pay by a date certain, but o-well, we all can't be lawyers.
Don't assume you own it just yet.0 -
quote:Originally posted by Blckhrn
Posession is 9/10ths. Burn the note and keep the rifle.
If you do that, what happens if the lendee calls the cops and reports the rifle stolen, then a couple of days later tells the investigator that he knows who has it now. That would open up a whole can-o-worms that would be far more costly than the $50 interest he wanted.0 -
Nice gun, I think those are factory inlays. good caliber, with scope. $300 is a good deal for you. If he doesnt want it back list it and sell it on GB. 0 -
You have asked a legal question. The correct answer to your questions depends upon the law in your state. Seek legal advice before proceeding. Beware of the advice that comes from us well meaning, but nonexperts. It is often worth about what it costs. Otherwise, wait and see if he shows up with the money within some reasonable period of time. If he does not, eventually the facts will speak for themselves. 0 -
quote:Originally posted by wtroper
You have asked a legal question. The correct answer to your questions depends upon the law in your state. Seek legal advice before proceeding. Beware of the advice that comes from us well meaning, but nonexperts. It is often worth about what it costs. Otherwise, wait and see if he shows up with the money within some reasonable period of time. If he does not, eventually the facts will speak for themselves.
He asked our advice. So your advice is to pay an attorney $500 to find out for him? Unfortunately some people think that only lawyers can decipher state and local laws. Im sure there are a few well meaning experts here, besides wtroper, that will come along and give you some good legal advice pro bono. Personally I would'nt let it become a legal matter. If he's truly your friend, tell him you like the gun and if he'd like to walk away from the loan, you would be glad to keep it. And if you dont decide to get rid of it, offer it back to him at $350. Friends are hard to come by.0 -
He is really not that good of a friend. I saw him the night before the loan was due at a local convience store buying lottery tickets. Guess he was trying to win the money to pay me.[:)] The $50 extra I charged him is not only interest, but also a storage fee in a fireproof safe with insurance for his gun. I've got a $450.00 offer on this gun right now. I have a signed agreement by him for the repayment and the terms of the repayment. I think it will hold up in court if he reports the gun stolen. After all, I donated $400.00 for my local county attorney when he campaigned last year. He should remember me. All business owners in my town donate to the county attorney for campaigns because he is the one who recovers our bad checks. 0 -
...Break it down to basics. Ask him if he wants the gun, or wants to pay you back in full. If he says "keep the gun", have him sign a receipt. Done....Find out his intentions. 0 -
I would give him notice and ask his intentions. That should cover you down the road if a probem comes back to haunt you. 0 -
quote:Originally posted by tapwater
...Break it down to basics. Ask him if he wants the gun, or wants to pay you back in full. If he says "keep the gun", have him sign a receipt. Done....Find out his intentions.
+10 -
Reguardless of your agreement with him if you keep the gun I would get a paper from him with gun # and that you received it from him.
What do you think would happen if you sell it and it turns out to be stolen.
Had that to happen to me . Also in Ky.0 -
Contracts 101. What the others have said above is the best advise. If you clear it up now, there will be no hard feelings later. If he does want to sell to you, get a receipt. Then you are covered. 0 -
I do not disagree with the prior posts concerning communication with him to ascertain his intentions, obtaining a receipt from him if he prefers not to repay, attempting to maintain relations with him, etc. However, your original question was "is the gun now legally mine?" I am not sure of the answer to that question. Some of the others who have replied may know more of the law in your state than I do. As a professional who daily provides professional personal service for a fee, I can assure you that competent professional advice is usually worth what is charged for it. No, I am not an attorney, but I deal with laws, provide advice daily and teach specialized law. Good luck. 0
Please sign in to leave a comment.
Comments
30 comments