You loaned $ 25,000 to a close

You loaned $ 25,000 to a close friend to buy an off-road vehicle. You planned to have him sign a note receivable, with the off-road vehicle becoming collateral, or security, for the note in case your friend failed to pay you. However, in the excitement and rush to get the vehicle, you forgot to have your friend sign the note and you forgot to make the arrangements for collateral. Nothing was signed prior to your giving your friend the cash. How should this transaction have been handled? What are the possible consequences of this transaction between you and your friend?


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