Lending money to family members is relatively risky investment

Dear Mr. Berko: In March 2003 I lent $8,000 to my very close
first cousin of 43 years. I have his personal note stipulating that the loan is
to be paid back in three years, by March 2006, at an interest of 8 percent. I'm
holding as collateral 85,000 shares of Sanchez Laboratories, which he bought at
50 cents a share in July 2001, which he said is worth at least $1.25 a share.

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