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| Date: |
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 (the "Lender"), and (collectively, the "Lender"), (or at such other place as the Lender may designate in writing), the sum of with
. TERMS OF REPAYMENT
. Payments
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.
This Note is secured by personal property in a . This Note shall be secured by a to real property commonly known as , , . Any such prepayment shall be applied against the installments of principal due under this note in the inverse order of their maturity and shall be accompanied by payment of accrued interest on the amount prepaid to the date of prepayment.
. 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.
. DEFAULT
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 liquidation, dissolution, incompetency or death of the Borrower;
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; or
8) the sale of a material portion of the business or assets of the Borrower.
assets pledged as security real estate pledged as collateral
. SEVERABILITY OF PROVISIONS
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.
. MISCELLANEOUS
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.
This note may not be amended without the written approval of the holder.
. GOVERNING LAW
This Note shall be construed in accordance with the laws of the
. SIGNATURES
This Note shall be signed by and and by . , on behalf of
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner prescribed by law as of the date first written above.
Signed this _____ day of _______________, _____, at ___________________________, _________________________ .
Borrower:
| By: | Date: |
Lender:
| By: | Date: |
Dated: _________________________
By:____________________________________________________
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
Make an agreement to settle an outstanding debt
Set terms for a loan to be paid in installments
Set loan terms with larger payments at the end
Ensure a loan is repaid on a specific date
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The word "secured" means that the loan is backed by an asset put up as collateral. If the loan cannot be repaid, then the collateral is forfeited to the creditor. A common type of secured loan would be a mortgage, where the loan is secured by the property being purchased.
The major difference between a secured and unsecured Promissory Note is collateral. A secured promissory note, as the name partially implies, is secured by some form of property (i.e. collateral), while an unsecured promissory note does not involve collateral. If the borrower defaults on a Secured Promissory Note, the lender gets to keep the collateral (the property that was used to secure the loan).
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Promissory Notes can be as thorough as you want them to be, but there are a few necessities:
Making a Secured Promissory Note is normally straightforward, but you might still have legal questions. Depending on whom you reach out to, some lawyers won't even agree to review a document that they didn't write. An easier approach worth consideration is to request help from Rocket Lawyer network of attorneys. If you become a Premium member, you have the ability to request a document review from an experienced attorney or get answers to other questions about your Promissory Note. We are always available to help.
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Neither witnesses nor notarization are legally required for your Secured Promissory Note Form.
