What is a promissory note in Colorado?

A promissory note in Colorado is an agreement that governs the exchange of money and the terms of that exchange. A person or entity who loans money to another person or entity uses this Note to define how the Borrower will repay the Loan and what happens if they don’t repay it on time or at all.

Why use a secured promissory note in Colorado?

When you set up a secured promissory note, you ask that the other party provide something of equal value to the Loan as collateral in case they can’t repay it. This object is your “Security,” which makes this type of document much less risky than an unsecured one, as you won’t lose money even if the party doesn’t manage to repay you.

How long is a promissory note valid in Colorado?

The statute of limitation in Colorado on the promissory note is six years. You must add terms to the document how long it’s valid for, which you usually add under the payments section. You must also list the end date when the other party fully repays the Loan and the payment schedule.

How to enforce a promissory note in Colorado?

Colorado doesn’t require that you file the Note with a government agency. However, both parties must sign and date the document and add their names, the loan amount, and the time frame for the repayment. Suppose there’s a violation of one of the terms. In that case, you can send it to a collection agency, file a lawsuit, repossess the collateral security, or sell the Note to another party, who’ll try and collect the debt.

Promissory Note Template Colorado

Prepared for:

[Borrower.FirstName][Borrower.LastName]

[Borrower.Company]

Created by:

[Lender.FirstName][Lender.LastName]

[Lender.Company]

1. Agreement

Borrower:[Borrower.FirstName][Borrower.LastName] of [Borrower.StreetAddress][Borrower.City][Borrower.State][Borrower.PostalCode]

Lender:[Lender.FirstName][Lender.LastName] of [Lender.StreetAddress][Lender.City][Lender.State][Lender.PostalCode]

Principal Amount: $ (Loan.Amount)

Date of Loan: (Loan.Date)

On the date of (Loand.Date), the Borrower receives and promises to repay the Lender the principal sum of the Loan stated above, along with interest accrued. This Note is a legally binding document, and once signed, both parties agree to enforce, uphold, and abide by the terms of this Note.

The monthly interest rate on the principal amount of the Loan is (Interest.Percentage) % from the start date of this Loan until the Borrower has paid it.

2. Security

This agreement operates on the principle of:

Unsecure – The Borrower provides NO SECURITY to the Lender on this Note.

Secure – The property described as (Security.Description) (“Security”) acts as the Security of this Note and will immediately transfer to the ownership of the Lender pursuant to Section six (6) of this Note. The Borrower cannot sell or transfer the Security without the consent of the Lender until the due date of the Loan repayment or until the Loan in its entirety is paid. The Lender can declare all sums under this Note immediately due and payable if the Borrower violates this term.

The Borrower is liable for the balance due in the Note while accruing annual interest at a rate of 12% if the market value of the Security does not meet or exceed the Loan amount. However, the Borrower does not have to pay back the balance of the Loan if the Lender accepts the Security as a total payment for the Loan without further liabilities or obligations.

3. Repayment

The Borrower agrees to repay the Loan and interest accrued in installments, per the schedule below.

Payment Date:	Payment Amount:
(MM/DD/YYYY)	$(Payment.Amount1)
(MM/DD/YYYY)	$(Payment.Amount2)
(MM/DD/YYYY)	$(Payment.Amount3)

3.1 Late Fees

Should the Borrower not pay the agreed upon installment within (Days) days of the due date, the Lender can charge a late fee of $(Late.Fee), which the Borrower must pay along with the late installment and default interest.

The Borrower has the right to prepay part of or the entire principal amount along with its accrued and unpaid interest. There are no premium or penalty charges on this prepayment.

The entire Loan, along with all accrued interest and unpaid late fees, is due no later than (MM/DD/YYYY).

4. In the Event of a Default

The Lender can declare that the Borrower immediately pay all outstanding sums if the Borrower default under this Note or any provision of it, and they do not cure the default within the allotted time of (Days) days.

Default of this Note can occur should any of the following, without limitation, occur:

Borrower does not pay the installments as outlined in Section three (3).
Death, bankruptcy, or incapacitation of the Borrower.
If Borrower violates the terms of this agreement.

Should the Lender incur expenses by enforcing the terms of this Note, the Borrower is solely responsible for it. It includes, without limitation, collection agencies and attorney fees. The Lender will add these costs to the principal amount, which is due immediately upon their demand.

Unpaid late fees, principal amounts, and interest more than 15 days late accrue interest at the maximum rate of the annual interest allowed in Colorado until the Borrower cures their default of this Note.

5. Terms and Conditions

5.1 Waiver

The Borrower, their guarantors, sureties, and endorsers waive notice of dishonor, presentment for payment, protest, and notice of protest.

5.2 Successors and Assigns

This Note inures to the benefit of and is binding to the respective heirs, successors, administrators, executors, and assigns of the Borrower. The Borrower requires the prior written consent of the Lender to transfer or assign this Note and its duties and rights.

5.3 Joint and Several Liability

Should there be more than one Borrower, the Borrowers are jointly and severally liable for this Note.

5.4 Amendment

Should either party want to amend this Note, they must do it in writing, with both parties signing the new agreement, which voids the previous one. No verbal or other agreements affect or modify the terms of this Note.

5.5 Severability

Should any part of this Note be declared void by a court of law or become unenforceable, it will become severed from the Note, and the remaining provisions will be in full force and effect.

5.6 Notifications

Any notice or communication under this Note must be in writing and sent via one of the following options: [Lender.Phone], [Lender.Email], or mailed to [Lender.StreetAddress][Lender.City][Lender.State][Lender.PostalCode].

6. Final Agreement

This Promissory Note is legally binding, and the parties cannot transfer it without the unanimous consent of both. This Promissory Note is the sole agreement governing the Loan, and no other promises, statements, or commitments, whether written or verbal, are considered valid and enforceable.

The laws of the state of Colorado govern this agreement, and all terms are construed following those laws. It is subject to the exclusive jurisdiction of federal and state courts located in (County), Colorado.

IN WITNESS WHEREOF, both parties have executed this Promissory Note by its duly authorized officer as of the day and year below.

[Lender.Company]

Signature

MM / DD / YYYY

[Lender.FirstName][Lender.LastName]

[Borrower.Company]

Signature

MM / DD / YYYY

[Borrower.FirstName][Borrower.LastName]

[Witness.Company]

Signature

MM / DD / YYYY

[Witness.FirstName][Witness.LastName]

Promissory Note Template Colorado

1. Agreement

2. Security