On this page we have posted a few sample templates of Promissory Notes for your conveniance.
(Instalment Note Short Form)
FOR VALUE RECEIVED, the undersigned jointly and severally promise to pay to the order of [LENDER’S NAME], the sum of
($___.00 together with interest thereon at the rate of %(_)per annum on any unpaid balance.
Said sum, inclusive of interest, shall be paid in (monthly/weekly) instalments of $___ each, with a first payment due, (date) 20 , and a like amount on the same day of each (month/week) thereafter until the full amount of this note and accrued interest shall be fully paid.
All payments shall be first applied to accrued interest the balance to principal.
The undersigned reserves the right to prepay this note in whole or in part without penalty.
This note shall be fully payable upon demand of any holder in the event the undersigned shall default in making any payments due under this note within (_) days of its due date.
In the event of any default, the undersigned agree to pay all reasonable solicitor fees and costs of collection to the extent permitted by law.
This note shall take effect as a sealed instrument and be enforced in accordance with the laws of the payee’s state/country.
London / name the 00th of (Month) 2011
Name borrower Name Lender
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(Several repayment alternatives)
On this date of [DATE], in return for valuable consideration received, the undersigned borrower[s] jointly and severally promise to pay to [LENDER’S NAME], the “Lender”, the sum of $[DOLLARS] Dollars, together with interest thereon at the rate of [RATE] percent ([RATE] %) per annum.
[Select from the following provisions, as desired]
Terms of Repayment:
This loan shall be repaid under the following terms: [describe terms]. All payments shall be first applied to interest and the balance to principal.
Terms of Repayment (Periodic Payment):
Starting on [DATE] and continuing until the principal balance of this Note and any accrued interest have been repaid in full, on the [DATE] day of each month the borrowers shall pay the amount of $[AMOUNT]. All payments shall be first applied to interest and the balance to principal.
Terms of Repayment (Balloon):
Starting on [DATE] and continuing thereafter from month to month until the date of [DATE 2], the borrowers shall make payments of interest only in the amount of $[AMOUNT]. On [DATE 2], final payment is due in the amount of $[BALANCE].
Payable On Demand:
The entire unpaid principal and accrued interest thereon, if any, shall become immediately due and payable on demand by the holder of this Note.
In the event that a payment due under this Note is not made within ten (10) days of the time set forth herein, the Borrower shall pay an additional late fee in the amount of $[AMOUNT].
In the event that a payment due under this Note is not made within ten (10) days of the time set forth herein, the Borrower shall pay an additional late fee in the amount of [PERCENT] percent of said payment.
Place of Payment
All payments due under this note shall be made at [DESIGNATED LOCATION], or at such other place as the holder of this Note may designate in writing.
This Note may be prepaid in whole or in part at any time without premium or penalty. All prepayments shall first be applied to interest, and then to principal payments in the order of their maturity.
In the event of default, the borrower[s] agree to pay all costs and expenses incurred by the Lender, including all reasonable attorney fees (including both hourly and contingent attorney fees as permitted by law) for the collection of this Note upon default, and including reasonable collection charges (including, where consistent with industry practices, a collection charge set as a percentage of the outstanding balance of this Note) should collection be referred to a collection agency.
Acceleration of Debt
In the event that the borrower[s] fail to make any payment due under the terms of this Note, or breach any condition relating to any security, security agreement, note, mortgage or lien granted as collateral security for this Note, seeks relief under the Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.
Joint and Several Liability
All borrowers identified in this Note shall be jointly and severally liable for any debts secured by this Note.
No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by both parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.
Transfer of the Note
The borrowers hereby waive any notice of the transfer of this Note by the Lender or by any subsequent holder of this Note, agree to remain bound by the terms of this Note subsequent to any transfer, and agree that the terms of this Note may be fully enforced by any subsequent holder of this Note.
Severability of Provisions
In the event that any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.
Choice of Law
All terms and conditions of this Note shall be interpreted under the laws of [JURISDICTION].
Signed Under Penalty of Perjury, this [DATE] day of [MONTH], [YEAR],
[Note- each borrower should sign separately.]
Signed in the presence of:
[Note- the lender may not be a witness. If more than one witness is used, each should sign separately.]
For a printable version please click below;