Full question:
My niece was trying to help out a friend and allowed her to stay in her home rent free.The girl had her boyfriend occasionally spend the night. The girls boyfriend wrecked my nieces truck, they agreed to pay for the damages, they got estimates but never paid. My nieces husband found this girls boyfriends necklace & bracelet laying in the bathroom and took it to a pawnshop and pawned it for $400. He told them he did it and he would get the jewelry back in 30 days and if they paid for the damage done to the truck he would give them back the jewelry. Now the couple say they are calling the police because he stole the jewelry and pawned it. He has no criminal history and has never been arrested. What should he do?
- Category: Debts and Credit
- Subcategory: Promissory Notes
- Date:
- State: Florida
Answer:
Generally, a person commits the crime of theft of property if he or she:
1.Knowingly obtains or exerts unauthorized control over the property of another, with intent to deprive the owner of his or her property;
2.Knowingly obtains by deception control over the property of another, with intent to deprive the owner of his or her property.
It may be necessary to return the jewelry to avoid a theft charge. It may be possible to file a small claims case for property damage to obtain a court judgment. The parties may negotiate for a mutual release of claims upon payment and return of jewelry. A promise to pay money is best put in writing. It may be possible to create a promissory note using the jewelry as collateral to secure the note. These are examples of some of the possible solutions, others may exist. I am prohibited from giving legal advice, as this service provides information of a general legal nature.
A promissory note may be secured or unsecured. When it is secured, it means that property, called collateral, may be taken by the lender if the borrower fails to pay the loan payment. If the debtor files bankruptcy, the lender may be able to recover the value of the loan by taking possession of the specified collateral instead of receiving only a portion of the borrowers property after it is divided among all creditors. Collateral may be many different types of property, such as shares of stock of a company, inventory, accounts receivable, etc.
The parties to the loan must sign it and the notary must witness the signatures. The contract may contain a choice of law clause as to where it will be litigated if a dispute arises. Choice of law refers to what jurisdiction's law is to be applied when there is a dispute in a transaction. The loan document may then be recorded in the county recorder's office where the property is located.
A promissory note may provide for payments to be made in installments or in a lump sum. The terms may provide for a series of smaller payments at the beginning of the loan period and a larger balloon payment at the end of the loan period. The option for a confessed judgment agreement, also called a cognovit note, may also be included. A confessed judgment agreement requires the debtor not to claim defenses and agree to have a judgment entered against him if he fails to pay and the matter is taken to court.
If a mortgage already exists on the property, the lender most likely has a prior lien recorded on the property. A mortgage loan will typically create a lien on a home and if filed before another debtor, the mortgage lien will be entitled to be paid first before the remaining proceeds, if any, can be paid to junior creditors.
Promissory Note: A promissory note is a written promise to pay a debt and is typically signed at the time of the loan. It is an unconditional promise to pay on demand or at a fixed or determined future time a particular sum of money to or to the order of a specified person or to the bearer.
Cognovit Note: A cognovit note is a note in which the maker acknowledges the debt and authorizes the entry of judgment against him or her without notice or a hearing : a note containing a confession of judgment. This type of note is not valid in many States.
Collateral Note: A collateral note is a note secured by collateral. Same as a secured note.
Demand Note: A demand note is a note payable on demand from the person who is owed the money.
Floating Note: A floating rate note (or adjustable rate note) is a note where interest varies.
Recourse Note: A recourse note is a note where the default may result in loss of collateral and also personal suit and judgment. Most notes are recourse notes.
Renewal Note: A renewal note is a note that renews a previous note due date.
Unsecured Note: An unsecured note is a note that is not secured by any collateral but only the promise to pay (i.e. signature only is required to loan the money).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
