Promissory Note Template
If the market value of the Security does not exceed the Borrowed Money, the Borrower shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. The Lender shall have the option to accept the Security as full payment for the Borrowed Money without further liabilities or obligations.
Borrower agrees to make periodic payments towards the total amount of the loan plus interest accrued, indicated in the table below:
|Payment Date||Payment Amount|
|(MM.DD.YYYY)||Payment 1 Amount|
|(MM.DD.YYYY)||Payment 2 Amount|
|(MM.DD.YYYY)||Payment 3 Amount|
If the Lender receives any installment payment more than (insert number) days after the date it is due, a late payment fee of $(insert dollar amount)shall be payable with the scheduled installment payment along with any default interest due.
This note will be repaid in full, including any interest and late fees, no later than MM/DD/YYYY.
The Borrower has the right to prepay all or any part of the principal amount of this Note, together with accrued and unpaid interest thereon, at any time without penalty or premium of any kind.
Holder reserves the right to enforce this promissory note as payable in full in each of the following conditions:
- Failure to make payment by any of the dates in the table above
- Borrower’s breach of any other aspect of this promissory note
- Death, incapacitation, or bankruptcy of Borrower
If the Borrower fails to pay the note in full on the due date or has failed to make an installment payment due within 15 days of the due date, the unpaid principal shall accrue interest at the rate of (insert number) percent per year OR the maximum rate allowed by law, whichever is less, until the Borrower is no longer in default.
Borrower agrees to be solely responsible for all costs, expenses, and expenditures incurred by Lender in enforcing the terms of this promissory note, including, without limitation, fees from attorneys and collection agencies.
Any legal costs the Lender incurred by enforcing this note as a result of any default by the Borrower will be added to the principal then outstanding and shall be due and payable to the Lender immediately upon demand of the Lender.
This note is legally binding and nontransferable by either party without prior written consent by both parties.
This promissory note is the sole agreement governing the loans mentioned. No other statements, promises, or commitments shall be considered valid or enforceable.
This promissory note and the interpretation of its terms shall be governed by and construed per the laws of the State of (insert state) and subject to the exclusive jurisdiction of the federal and state courts located in (insert county), (insert state).
Terms & conditions
The Borrower and all sureties, guarantors, and endorsers waive presentment for payment, notice of dishonor, protest, and notice of protest.
Successors and assigns
This Note will inure to the benefit of and be binding on the respective heirs, executors, administrators, successors, and permitted assigns of the Borrower. This Note prohibits the Borrower from assigning their rights or delegating its duties without the Lender’s prior written consent. This Promissory Note may not be transferred without the express written consent of the Lender.
Joint and several liability
If there is more than one Borrower of this Note, each Borrower shall be jointly and severally liable.
No verbal or other agreements shall modify or affect the terms of this Note. Neither Borrower nor Lender may amend or modify this Note except in writing.
If any part or all of this note is found to be invalid or unenforceable, the remaining provisions will remain valid.
IN WITNESS WHEREOF, each of the Parties has executed this Promissory Note, both Parties by its duly authorized officer, as of the day and year set forth below.