this sample promissory note (also available in microsoft word, pdf and plain text downloadable files) spells out how and when you are to be paid, and what happens if the borrower doesn’t repay the loan. having a note won’t guarantee you’ll be repaid, but it does help clear up ambiguities and serves as evidence if you ever decide to take the borrower to court. all payments under this note shall be applied first to accrued but unpaid interest, and next to outstanding principal. the maker shall have the right at any time and from time to time to prepay this note in whole or in part without premium or penalty.
no delay or omission on part of the holder of this note in exercising any right hereunder shall operate as a waiver of any such right or of any other right of such holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion. upon the occurrence of an event of acceleration under this note, and in addition to any other rights and remedies that payee may have, payee shall have the right, at its sole and exclusive option, to declare this note immediately due and payable. the maker’s obligations under this promissory note are subordinated to all indebtedness, if any, of maker, to any unrelated third party lender to the extent such indebtedness is outstanding on the date of this note and such subordination is required under the loan documents providing for such indebtedness. in the event any payment under this note is not paid when due, the maker agrees to pay, in addition to the principal and interest hereunder, reasonable attorneys’ fees not exceeding a sum equal to 15% of the then outstanding balance owing on the note, plus all other reasonable expenses incurred by payee in exercising any of its rights and remedies upon default. this note shall be governed by, and construed in accordance with, the laws of the state of ___________________ (state name).
but if you’re lending a large amount of money, such as a personal loan to family or friends, it’s a good idea to write up a formal promissory note just as if you were a lender from a bank. a promissory note is a legally binding agreement that lays out all the details of the loan. when you sign a promissory note as a borrower, you agree to the terms of the loan and promise that you’ll pay it back. but sometimes we lend money to friends and family, too. having a formal promissory note in place can help solve problems like this. on the flip side, it’s also a good idea to sign a promissory note anytime you borrow money from someone where they could be upset if you didn’t pay it back. but if you’re going to lend someone a few hundred or thousand dollars, for example, you’ll want to make sure you have a formal promissory note written up so everyone is on the same page.
if you’re charging interest on the loan, you can easily calculate the payment amount using an online personal loan calculator. however, using a lawyer is not necessary for the loan to be valid. once you draft the promissory note, it’s time for everyone to sign it: the lender, the borrower and the co-signer (if there is one). make sure everyone who signed the promissory note gets a copy for their records. then, have everyone sign that copy again, and give everyone a copy of the amendment. lindsay vansomeren is a personal finance writer based out of kirkland, washington. jordan tarver is the assistant editor for loans at forbes advisor.
for value received, the undersigned, (the “maker”), hereby promises to pay to the order of. (lender name) (“payee”), the principal sum of $ a promissory note is a promise to pay back money owed within a specific timeframe. the borrower receives the funds after the note is signed and agrees to make in return for a loan that i have received, i promise to pay. u.s. $. (this amount is called. “principal”), plus interest, to the order of the lender. the lender, promissory note pdf, promissory note pdf, free promissory note template – word, sample promissory note for installment payment, simple promissory note no interest.
a promissory note documents the borrower’s legally binding promise to repay a loan under certain terms and conditions. unlike an iou that only this note may not be modified or amended except by written agreement signed by maker and holder. 15. conflicting terms: in the event of any conflict between the a promissory note is an agreement to borrow money from someone else stating specific time-periods for being paid-back along with an interest rate,, promissory letter for payment, microsoft office promissory note template, promissory notes for personal loans, promissory note with payment schedule, promissory note template california, fill in the blank promissory note pdf, promissory note sample philippines, school promissory note sample, sample promissory note for family loan, promissory note mortgage.
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