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From a Mums and Dads perspective, the most common arrangement needing appropriate security documentation is a loan between family members or friends.  Such loans should always be properly documented and where appropriate secured by way of mortgage or debenture charge (if there is a company involved).

Moneys should preferably not be advanced before all the relevant security documentation is in place.  See Friedman Lurie Singh & D’Angelo before its too late to protect yourself.