legal advice
I lent 10,000 dollars to a fmaily member.In return they gave me a living room set as collateral. They failed to pay me back,so I kept the set as payment. They came to my home with the police,and the police told me I have to give it back.Is this right?
Re: legal advice
I disagree with the preceding answer based on my reading of the facts to show that the collateral was placed in your possession by the borrower with an express, although oral, understanding that it was to be collateral for the $10,000 loan. When the property was delivered to your possession and the loan was made, you acquired a perfected security interest in the collateral. Delivery of the collateral is an exception to the usual requirement that a security interest be in writing. See Commercial Code sections 9203(b)(3)(B) and 9313(a). This was also the rule under the common law preceding the adoption of the Uniform Commercial Code. Therefore, there is no way (under the facts given) for this to be theft.
Re: legal advice
I disagree with the preceding answer based on my reading of the facts to show that the collateral was placed in your possession by the borrower with an express, although oral, understanding that it was to be collateral for the $10,000 loan. When the property was delivered to your possession and the loan was made, you acquired a perfected security interest in the collateral. Delivery of the collateral is an exception to the usual requirement that a security interest be in writing. See Commercial Code sections 9203(b)(3)(B) and 9313(a). This was also the rule under the common law preceding the adoption of the Uniform Commercial Code. Therefore, there is no way (under the facts given) for this to be theft.
