Qitzur Shulchan Arukh – 179:13-14
יג: הַמַּלְוֶה אֶת חֲבֵרוֹ עַל הַמַּשְׁכּוֹן, שֶׁאִם לֹא יִפְרָעֶנּוּ לִזְמַן פְּלוֹנִי, יְהֵא הַמַּשְׁכּוֹן חָלוּט לוֹ, יִזָּהֵר לוֹמַר לוֹ בִּשְׁעַת הַלְוָאָה, אִם לֹא תִפְדֶה אוֹתוֹ עַד זְמַן פְּלוּנִי, יְהֵא קָנוּי לִי מֵעַכְשָׁו
Someone who lends his friend money on a collateral such that if he does not pay it in a certain time, the collateral would b, he should be careful to tell him at the time of the lending “If you do not pay it off until such-and-such a time, it should be transferred to my possession as of now.”
יד: מִי שֶׁהוּא יוֹדֵעַ שֶׁחַיָּב לַחֲבֵרוֹ, וַחֲבֵרוֹ אוֹמֵר לוֹ, וַדַּאי לִי שֶׁאֵינְךָ חַיָב לִי, פָּטוּר מִלְשַׁלֵּם לוֹ, שֶהֲרֵי מָחַל לוֹ
Someone who know he is obligated to his friend [borrowed money or objects] and his friend says to him, “It is certain to me that you do not owe me”, he is not obligated to pay him, since the lender forgave him [the loan].
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