Prommisory Note

[skdawson]

I Live in Georgia

I have a signed prommisory note where I loaned a friend 25K. Included in the note my friend agreed to use his business (Sub Shop), equipment as collaterial if he defaulted on the loan. I stated specific time frame and monthly payments plus interest in the note. It was to be paid back in 3 months. My friend has only made 3 payments and has gone out of business. I have a signed copy of the prommisory note along with a cancelled check that I wrote him for 25K. This note was signed on March of last year (2004) I have several questions: I have missplaced the original signed document but have a copy, will that be a problem? Is there a time frame that I must file suit by or else? Do I have any recourse since the collateral stated in the note is no longer available? How do I go about suing him if I can? I assume the amount loaned would not allow me to handle in small claims court?? The person currently has problems with the feds for tax evasion and fraud. He has no money but will inherit a lot of money one day. Can I put a lean/attachment on his house so that one day he cannot sell it without settling with me?

[Ladynred]

I have missplaced the original signed document but have a copy, will that be a problem?

Probably not. As long as you DO have it in writing, signed by both of you, you should be ok.

Is there a time frame that I must file suit by or else?

Yes, its called the Statute of Limitations. In GA you have 6 years to sue, starting from the date of default.

Do I have any recourse since the collateral stated in the note is no longer available?

Sure you do. Sue him, you have a signed, written agreement.

How do I go about suing him if I can?

Get a lawyer, draw up your Complaint and file it with the court.

I assume the amount loaned would not allow me to handle in small claims court??

Probably not, 25K is usually way beyond small claims court. Call the courthouse and find out.

Can I put a lean/attachment on his house so that one day he cannot sell it without settling with me?

If you sue him and win a judgment against him, YES you CAN place a lien on his property. Just make sure the lien is recorded properly against the deed.

Originally Posted by skdawson

I Live in Georgia

I have a signed prommisory note where I loaned a friend 25K. Included in the note my friend agreed to use his business (Sub Shop), equipment as collaterial if he defaulted on the loan. I stated specific time frame and monthly payments plus interest in the note. It was to be paid back in 3 months. My friend has only made 3 payments and has gone out of business. I have a signed copy of the prommisory note along with a cancelled check that I wrote him for 25K. This note was signed on March of last year (2004) I have several questions: I have missplaced the original signed document but have a copy, will that be a problem? Is there a time frame that I must file suit by or else? Do I have any recourse since the collateral stated in the note is no longer available? How do I go about suing him if I can? I assume the amount loaned would not allow me to handle in small claims court?? The person currently has problems with the feds for tax evasion and fraud. He has no money but will inherit a lot of money one day. Can I put a lean/attachment on his house so that one day he cannot sell it without settling with me?

Since you do not have the original, this problem is covered by the best evidence rule: A rule of evidence that demands that the original of any document, photograph or recording be used as evidence at trial, rather than a copy. A copy will be allowed into evidence only if the original is unavailable.

Your lawyer will tell you how to comply with this rule.