Firearms to repay loan.

[DadSmith]

Was wondering if it's legal to repay a loan from a friend with a firearm?

Not sure if this is the right place to post this.

 

[chenowethpm]

If your friend is a proper person and is in agreement with taking firearms for a private loan then it’s totally legal. If I loaned money to a friend and they offered to pay me back with firearms I would gladly accept, as long as I didn’t need the cash.

 

[jagee]

Sure, why not?

 

[Vigilant]

It used to be illegal in Indiana to pledge a handgun as collateral for a loan. That may have been for pawn shops only, but since you are repaying a loan, I don’t know that anything prevents that. I don’t know if it is still illegal to pledge as collateral though.

 

[Trigger Time]

Vigilant is right as far as the laws regarding pawn shops.

As far as what you and your friend do in a private transaction, its no ones damn business especially the government.

 

[jy951]

Well if there is interest income on the loan, then it is the government's business to charge you income tax on it.

Vigilant is right as far as the laws regarding pawn shops.

As far as what you and your friend do in a private transaction, its no ones damn business especially the government.

 

[DangerousDave]

As long as your friend is not a felon and as long as he lives in the same state as you do, I don't see any problems with it.

 

[jagee]

Well if there is interest income on the loan, then it is the government's business to charge you income tax on it.

If I'm in a loan agreement with a friend that is charging me interest on a personal (friendly) loan, I need new friends.

 

[walt o]

the law in Indiana has been changed and it is legal to pawn a handgun .

 

[Vigilant]

the law in Indiana has been changed and it is legal to pawn a handgun .

That’s good to know.

 

[Vigilant]

On a side note, can the friend even loan money with interest legally w/o UCC filing?

 

[jy951]

On a side note, can the friend even loan money with interest legally w/o UCC filing?

Yes you can. And whether or not it's legal, you still have to pay income tax on it.

 

[Trigger Time]

Well if there is interest income on the loan, then it is the government's business to charge you income tax on it.

Yeah if you make it their business then I guess it is. Sounds like since you like walking the straight line you and your buddy should consult a lawyer not ingo

 

[lawyers guns and money]

Maybe if you did it quietly , as if you just sold it to him. Without mention of a loan? That is still legal, for now

 

[cce1302]

Just keep it quiet or some moron out there will insist that it's "common sense" that it should be illegal.