You will need to set out the amount loaned, the interest, amount and frequency of payments, how defaults are to be handled and what will happen if the secured asset is damaged.
Any time one person or party is lending money to another and taking security for the loan, it is vital that a clearly written legal agreement is made and signed. This easy to understand and use agreement takes the hassle out of any such arrangement.
The agreement should make all of these issues clear so that both parties fully understand each of their rights and responsibilities. This will minimise the possibility of a dispute or misunderstanding between the parties.
RP Emery and Associates DIY Legal Kits supplies easy-to-use and professionally drafted Secured Loan Agreements, Available for Immediate Download
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