What is a Promissory Note with Balloon Payments?
When to use a Promissory Note with Balloon Payments:
- You're party to a loan that has balloon payments.
- You want to prepare an amortization table if the loan includes interest.
- You want to determine the amount of a monthly payment.
BALLOON PAYMENT PROMISSORY NOTE
For value received, the undersigned (the "Borrower"), at , , , promises and (collectively, the "Borrower"), at , , , each as principal, jointly and severally, promise to pay to the order of at , , (or at such other place as the Lender may designate in writing), the sum of with
. TERMS OF REPAYMENT
The unpaid principal shall be payable in installments of , beginning on , and continuing until , (the "Due Date"), at which time the remaining unpaid principal and interest shall be due in full.
THE BORROWER UNDERSTANDS THAT THE PAYMENT OF THE ABOVE INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL BALANCE OF THE NOTE, AND THEREFORE, A BALLOON PAYMENT MAY BE DUE ON THE DUE DATE.
. Application of Payments
All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment of principal.
. Acceleration of Debt
If any installment is not paid when due, the remaining unpaid principal balance and accrued interest shall become due immediately at the option of the Lender.
. COLLECTION COSTS
If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process.
If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become due immediately, without demand or notice:
1) the failure of the Borrower to pay the principal and any accrued interest when due;
2) the death of the Borrower or Lender;
3) the filing of bankruptcy proceedings involving the Borrower as a Debtor;
4) the application for the appointment of a receiver for the Borrower;
5) the making of a general assignment for the benefit of the Borrower's creditors;
6) the insolvency of the Borrower;
7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or extending credit.assets pledged as security real estate pledged as collateral
If any one or more of the provisions of this Note are determined to be unenforceable, in whole or in part, for any reason, the remaining provisions shall remain fully operative.
All payments of principal and interest on this Note shall be paid in the legal currency of the United States. The Borrower waives presentment for payment, protest, and notice of protest and demand of this Note.
No delay in enforcing any right of the Lender under this Note, or assignment by Lender of this Note, or failure to accelerate the debt evidenced hereby by reason of default in the payment of a monthly installment or the acceptance of a past-due installment shall be construed as a waiver of the right of Lender to thereafter insist upon strict compliance with the terms of this Note without notice being given to Borrower. All rights of the Lender under this Note are cumulative and may be exercised concurrently or consecutively at the Lender's option.
. GOVERNING LAW
This Note shall be construed in accordance with the laws of the
This Note shall be signed by and by and and by . , on behalf of
IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner prescribed by law as of the date first written above.
The is secured by collateral pledged by . Therefore, a Security Agreement should be signed by the parties in addition to the .
and fail fails or and and
Promissory Note with Balloon Payments FAQs
How can I draft a Promissory Note with Balloon Payments online?
It is very easy to get what you need using a free Promissory Note with Balloon Payments template from Rocket Lawyer:
- Make your Promissory Note - Answer a few questions and we will do the rest
- Send or share - Review the document with a lawyer, if needed
- Sign it - Sign your Promissory Note online and make it legal
Any Promissory Note Form from Rocket Lawyer can be edited to address your unique situation. When you're ready to begin, you can click on the "Make document" button. Your document will be constructed step by step so you can be sure that it has all of the appropriate information within.
Do I need an attorney for my Promissory Note with Balloon Payments?
Writing a Promissory Note with Balloon Payments is generally simple to do, but you may still have questions. Depending on whom you ask, some lawyers will not even accept requests to review documents that they did not author. An easier approach would be through Rocket Lawyer attorney services. As a Premium member, you can request guidance from an attorney with relevant experience or get answers to other legal questions about your Promissory Note. We're always here to support you.
What would it typically cost to make a Promissory Note with Balloon Payments?
The fees associated with hiring and working with a law firm to produce a Promissory Note with Balloon Payments could range between two hundred and one thousand dollars, depending on where you are and how complex the matter is. Rocket Lawyer offers much more than other Loan Agreement template websites that you might encounter. As a Rocket Lawyer member, you can get up to a 40% discount when hiring an attorney from our network.
Is anything else required after I make a Promissory Note with Balloon Payments?
After creating this Promissory Note on Rocket Lawyer, you will have the ability to get to it at any time and place. You also may interact with the document in all of the following ways: editing it, saving it in Word or PDF format, printing it, and signing it with RocketSign®. Each Promissory Note also comes with a set of next steps you should take to finalize the document.
Does a Promissory Note with Balloon Payments need to be notarized or witnessed?
Neither witnesses nor notarization are legally required for your Promissory Note.