For smart money transactions, an IOU is a document that must be accurately filled out even among close family members. We will inform you of the form of IOU that proves that you have lent and borrowed money, how to write the IOU, and how to use it to ensure there are no problems with its legal effect.
How to use an IOU when borrowing money and its effect IOU form
index
1. What should I do when lending money?
2. Disposal document with strong evidential effect
3. Disposal document prepared when lending money
￭ IOU and money loan contract
￭ Cash deposit certificate
4. How to write an IOU (money consumption loan contract)
5. If you fail to prepare disposition documents such as an IOU
There is a saying that when you lend money, you sit down and when you receive it, you stand and receive it. When it comes to circumstances, there are many people who lend money with good intentions but are upset because it is difficult to get it back. If you don’t want to be upset like this, you can either not lend the money at all. I would like to tell you what you need to be careful about when lending. We will teach you how to write a statement that has legal effect to avoid being involved in future disputes.
1. What should I do when lending money?
Confirmation of the debtor’s sense of responsibility and willingness to repay
Preparation of disposition documents (IOU, money loan contract, cash storage certificate, etc.)
Recording of conversation with debtor (conversation with principal)
Recorded via KakaoTalk, text message, email, etc. (content and response to lending money)
Leave remittance information (bank transaction statement)
2. Disposal document with strong evidential effect
A disposition document is a document that sets out the contents of a legal relationship between the parties and is signed and sealed by the parties. You can think of contracts that are frequently used. Typical disposal documents include IOUs used when lending money and real estate sales contracts, and other contracts, agreements, memorandums, agreements, etc. are also included.
Since a legal relationship was established through the document, if it is recognized that it was written by the parties, it is recognized that a legal relationship exists according to its contents. Simply put, if you have written a document and put your seal on it of your own volition, you must be held legally responsible for the document.
3. Disposal document prepared when lending money
IOU
Money consumption loan contract
Cash deposit certificate
￭ IOU and money loan contract
You’ve probably heard the word IOU a lot, and it’s common knowledge that you use an IOU when lending money. Some people may be unfamiliar with a financial loan agreement, but you can think of it as the same as an IOU in money transactions with individuals. An IOU (Money Consumption Loan Agreement) is a document prepared to prove this when lending money or when needing to repay money for another problem.
Even though we know very well that we need to write, there are many times when it is not easy to actually write. When I ask for an IOU, I feel embarrassed because I feel like I’m being suspicious of the other person. So, there are many cases where I can’t make a strong request and I write it, but I can’t write it properly.
However, you do not necessarily have to use an IOU. Also, it is not possible to get money right away with just an IOU. An IOU serves as a ‘basis’ to prove that there was a credit-debt relationship – a financial transaction relationship in which money was lent to each other. In other words, it can be considered the most common safety device as a document to prepare for disputes and lawsuits that may arise in the future.
A notarized deed prepared at a notary office is prepared by a notary (a third party) and is usually called a notarized financial consumption loan deed. It costs a fee to get it notarized. You just need to prepare your own ID card and stamp.
There are two ways to get it notarized: take an already-written IOU and have it notarized, or go to a notary public office and fill out the IOU. One thing to note is that although writing an IOU and having it notarized is strong evidence that money was lent, it does not give you the legal authority to enforce it if the debtor does not repay the money.
A way to ensure that the document itself has strong legal effect is to have it notarized.
When notarizing an IOU (money consumption loan contract) at a notary office, if you prepare a notarized deed acknowledging compulsory execution (statement that you will not raise an objection to compulsory execution), the notarized deed becomes the right of execution, and if the other party does not repay the money, You can receive an execution order and immediately proceed with compulsory execution, such as seizure, without a lawsuit (even without a court ruling).
Please check the article below for more information on methods other than IOU, interest, notarization, etc.
We will explain the types of personal and material collateral and notarization, overdue interest, and advantageous methods in litigation.
Preparing for disputes during financial transactions between individuals – interest, types of notarization, and how to receive money lent
In this article, we will easily explain common sense to prepare for legal disputes, such as the content of documents when lending money such as an IOU during financial transactions between individuals, how interest is determined, and types of notarization with different legal effects, without using difficult legal terms.
plus-note.tistory.com
However, since it is generally difficult to get it notarized, it is best to write it in detail to avoid any disputes. Please refer to the bottom of the article for information on how to write an IOU (money consumption loan contract). Share the form.
Money consumption loan contract form.docx
0.02MB
￭ Cash deposit certificate
When lending or borrowing money, it is often difficult to know what to title it. There may be many people who are unfamiliar with the cash deposit certificate, but it is different from the IOU (money consumption loan contract) above. Usually, a cash deposit certificate is written to simply state that cash is being stored without interest, so its purpose can be seen as being written when sending money to an errand to deliver it to a third party, or when leaving money in storage for a while.
Also, the biggest difference is that if the payment date (the date by which the money must be returned) is not entered, the lender can request the money to be returned at any time. In case of dispute, the IOU is filed as a fraud or civil lawsuit, but the cash deposit certificate is filed as a criminal lawsuit for embezzlement.
In a personal transaction, there is no big difference in what you receive, but if you want to receive interest or get it back whenever you want, it would be a good idea to receive both an IOU and a cash deposit certificate. In particular, no matter what you write, it is most important to write down exactly what you need. We share the cash deposit form below.
Cash deposit certificate form.docx
0.01MB
4. How to write an IOU (money consumption loan contract)
Since an IOU is a document that does not have a set format, you only need to fill out the essential parts without omitting them to avoid any disputes later. It does not need to be a printout; rather, writing it down in the debtor’s own handwriting may be stronger evidence.
Please note that this is a mandatory item.
creditor’s name
Debtor’s personal information – name, address, resident registration number, contact information
The principal amount of the loan
Borrowing date (the date the money was lent) and the repayment date (the date the money is to be repaid)
Interest and delay damages in case of late payment
Obtain a copy of your ID card or seal certificate after obtaining the debtor’s seal (stamp, stamp, or signature)
The most reliable way is to attach a seal + seal certificate, and you can also stamp it. Next, choose between a stamp or signature + receive a copy of your ID card. Instead of a copy of your ID card, you may attach a copy of your resident registration. Also, people are wondering how to write it down in close relationships between family members, such as parents, children, siblings, etc. However, if a loan is made without interest due to family difficulties, the interest may or may not be listed on the form.
[Example of IOU writing]
Money consumption loan contract
Creditor Hong Gil-dong (700101-123ㅇㅇㅇㅇ)
ㅇㅇbeonji, Samcheong-dong, Jongno-gu, Seoul
Debtor Immigration Bureau (650101-134ㅇㅇㅇㅇ)
Address: Susong-dong, Jongno-gu, Seoul
1. The debtor borrows 10 million won (10,000,000 won) in gold from the creditor at an interest rate of 10% per annum for one year from March 1, 2020.
2. If the debtor does not repay by the repayment period, late interest of 20% per annum will be charged.
3. In the following cases, term profits are lost and must be repaid even before the repayment period.
go. When the debtor damages, reduces or destroys the collateral
me. When the debtor fails to fulfill his obligation to provide collateral
all. When the debtor becomes bankrupt
2020. 3. 1.
Creditor Hong Gil-dong (Seal)
Debtor Lee Mong-ryong (Seal)
※ In the above example, only matters 2 and 3 are additional matters through special contracts, and the rest are required.
5. If you fail to prepare disposition documents such as an IOU
There are many ways to prepare for money lent without an IOU, so make the most of it and prepare alternatives. The point is that there is information that shows that you lent money to the other party and that the other party acknowledges this.
￭ Recording of conversation with debtor
Recording of conversation with debtor
In cases where it is difficult to prepare supporting documents (disposal documents) such as an IOU, recording conversations can play an important role. It is often thought that it is illegal to secretly record conversations with other people, but it is legal to record conversations with yourself. Under the Communications Secrets Protection Act, recording or listening is prohibited for ‘conversations between people other than yourself.’
Therefore, if it is a conversation between you, it is not illegal or problematic to include someone else’s voice, so if it is difficult to write a document, it is recommended to record the conversation. These days, smartphones have a recording function, so you can easily record and record phone calls.
￭ Text message records
KakaoTalk or text message, Records of money being lent via email, etc.
KakaoTalk, email, text messages, and SNS conversations can also be used as evidence. If you have not been able to write the disposition document or record it, you can send the details of the money lent via text message and receive a reply later. At this time, as when writing a document, it would be a good idea to exchange as much specific information as possible, such as the amount lent and the repayment deadline. At this time, you must tactfully purify the content or terminology in a conversational style to receive the desired reply without hurting the other person’s feelings.
￭ Account transfer transaction details
Account transfer transaction history
Through the various methods mentioned above, you can respond when a legal dispute arises in the future. In extreme cases, even if you have an IOU, the other party may claim that ‘I used the IOU, but did not lend you the money,’ so you cannot prove that you lent the money. It is advisable to have deposit details, etc.