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Maverick, Attorney
Category: Business Law
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Experience:  20 years of professional experience
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I am a U S citizen who recently sent some money (about $150,000)

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I am a U S citizen who recently sent some money (about $150,000) to a friend (who is a citizen and resident of Panama) who I met 15 years ago while we were both in school in Louisville, ky. This was to help him buy, improve, and stock a cattle farm in Panama. I'm not sure if he considers this a loan, or if I will have a minority equity interest(we have no firm or written agreement). When do I need supply info, what info, and to whom?
Submitted: 6 years ago.
Category: Business Law
Expert:  Maverick replied 6 years ago.

Did you have any oral conversations on that subject.


Could he argue it was a gift?


What were your intentions with regards XXXXX XXXXX money and what did you understand from his oral statements that his intentions were regarding the money?


Does he already have all the money in his possession?


How was it transfered to him, by check, wire transfer, etc?


How long ago did you send the money?


Customer: replied 6 years ago.
I was to have an interest in the properties bought real and chattel) under a "quarter interest for a third" payment arrangement, with his extra carried interest as payment for all the management and on-site supervision. Title are in his name only, and he checks with me only concerning concept and possible opportunities, and not day to day operations. The money was definitely not a gift.The money was transfered in 7 separate wire transfers, and is all in his possession. I plan to continue with participation in more projects if all goes well. The transfers began in March, 2008.
We never decided exactly how this was structured, and I feel treating this as a loan with a basic interest rate and a further oayment if the project went well, or a a straight-up equity participation would be within what we discussed and would be okay with him.
Expert:  Maverick replied 6 years ago.

At the link below youwill find : Treaty between the United States of America and the Republic of Panama concerning the Treatment and Protection of Investments.


First you should read this treaty and print it out for future reference in case you decide to become an equity partner. This is a fairly complicated process and I would recommend that you seek the advice of an international business transactions lawyer to help you complete the transaction properly. You can use the links below as a place to locate such a lawyer near you.


My suggestion is that you go the promissory note route so that it is easily enforceable if things go south compared to some type of equity participation which can get very expensive to litigate and resolve internationally.


At this link you will find a treaty that governs promissory notes and how they are to be enforced between the two countries. I would also suggest that you print and read and attach that to a promissory note that your friend is to sign. The promissroy note will need to be backed by a security interest in his land. Once again, this is complicated enough so that you will need the assistance of a international business transactions lawyer.

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