Loaned Money

[RSSP]

I loan an associate some money. He gave me in return his personal check as a promise of payment that I was to cash when he had the money in the bank.

The problem is he has not been able to get the money in the bank to cover the check. What should I do? It's been 6 months and the amount is over $5000. I'm considering getting a Promissionary Note.

What recourse do I have to get the money?

 

[JETX]

As I see it, you have the following options:
1) Continue to hold the check until the 'guy' wins the lottery and makes it good.
2) You can deposit the check, knowing that it is not good. Then file 'hot check' charges against him (this is only valid if your location allows anyone, not just retailers, to file).
3) You can send him a 'demand letter' by Certified RRR. In it, detail your 'agreement' and that you are holding a check for payment. Advise that you will either get criminal charges (see 2 above) or civil charges filed if he doesn't pay this debt by a certain date (7 days after receipt?). Then if he doesn't pay, you will need to talk with a local JP court about him giving you a fraudulent check.