There must be an agreement between both lender and borrower. The borrower must agree
to repay the money (i.e., it cannot be a gift). Although a specific repayment schedule
is not required, it should be clear how much money is owed and that the borrower will
repay the money. It need not be in writing, unless the agreement specifically provides
for repayment to begin beyond one year from the date of the agreement. If the agreement
will begin to be performed beyond one year, it must be in writing.
NOTE (the following applies to both New Jersey and New York):
Statements such as “when I return to work”, “when I receive SSI” are possibly performable within one year, even though there are no fixed terms and
are therefore acceptable.
Statements, either oral or written such as “when I win the lotto” would not be enforceable since lottery winnings cannot be considered anticipated
income per SI 01120.220C.