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This simple promissory note template for Texas lets you create a legal contract between a borrower and a lender. It includes the loan amount, repayment dates, interest, and other important terms of the agreement. Use this template alongside a loan agreement between investors and businesses or on its own when the lender is family or a friend.

Promissory Note Template Texas

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Prepared for:

​[Borrower.FirstName][Borrower.LastName]​

​[Borrower.Company]​

​Created by:

​[Lender.FirstName][Lender.LastName]

​[Lender.Company]​

Borrower:[Borrower.FirstName][Borrower.LastName] of [Borrower.StreetAddress], [Borrower.City], Texas, [Borrower.PostalCode]​

Lender:[Lender.FirstName][Lender.LastName] of [Lender.StreetAddress], [Lender.City], Texas, [Lender.PostalCode]​

Principal amount: $(insert amount of loan)

The principal amount is the full loan amount without any accrued interest.

Date:[Document.CreatedDate]​

Adding the date to your Texas promissory note helps determine the repayment timeline as well as the validity period of the agreement.

This promissory note is a binding legal document by and between Borrower and Lender. By signing the final page of this promissory note, both parties agree to uphold, enforce, and abide by the terms of this document in its entirety.

The Lender agrees to loan the balance indicated above to Borrower. Borrower agrees to repay this amount, plus interest in the amount of (insert interest rate)% per month from the date stated above.

In Texas, the maximum percentage of annual interest on loans is 18% if specified in writing. If your promissory note doesn’t specify the interest on the loan, then it’ll be governed by the state limitations, which is 6%.

The Borrower agrees to secure the loan against their assets, including (insert assets, i.e., house, car, etc) and hereinafter known as the “Security.”

If the Borrower is in default under this Note or is in default under another provision of this Note and such default is not cured within the minimum allotted time by law after written notice of such default, then Lender may, at its option, declare all outstanding sums owed on this Note to be immediately due and payable.

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 Due Date

Payment Amount

(MM/DD/YYYY)

(Payment.Amount)

(MM/DD/YYYY)

(Payment.Amount)

(MM/DD/YYYY)

(Payment.Amount)

Include the payment processing address of the borrower in this section if you’re using a Texas secured promissory note.

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.

Interest rates on promissory notes are always calculated annually. As such, your Texas promissory note can state that the interest is per annum, yearly, or an annual percentage rate (APR).

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:

  1. Failure to make payment by any of the dates in the table above

  2. Borrower’s breach of any other aspect of this promissory note

  3. 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 non-transferable 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 Texas and subject to the exclusive jurisdiction of the federal and state courts located in (insert county), Texas.

Terms and Conditions

Waiver

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

In Texas the Lender doesn’t have to be physically present when the borrower makes payments in terms of the promissory note.

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.

Amendment

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.

Severability

If any part or all of this note is found to be invalid or unenforceable, the remaining provisions will remain valid.

Notifications

Any notice or communication under this Note must be in writing and sent via one of the following options:

​[Lender.Phone], [Lender.Email]​

​[Lender.StreetAddress], [Lender.City], Texas, [Lender.PostalCode]​

For a Texas secured promissory note, you’ll also need to include the physical address for the borrower and any co-signees if this is different from the notification address. You can have these details in the repayment section of the note or where you list the collateral.

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.

Promissory notes in Texas don’t need to be notarized by law. However, for this agreement to be considered legally binding, all parties involved (including any co-signers) need to sign and date this agreement.

​[Lender.Company]​

​

Signature
MM / DD / YYYY

​[Lender.FirstName][Lender.LastName]​

​[Borrower.Company]​

​

Signature
MM / DD / YYYY

​[Borrower.FirstName][Borrower.LastName]​

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FAQ: Promissory Note Template Texas

  • A Texas promissory note form is a legal contract that dictates the agreement between a lender and borrower. This note outlines the understanding of the loan amount, repayment terms, annual interest, and the terms and conditions that both parties agree to. This contract can be entered into between any parties, including family and friends.

  • A secured promissory note is the safest way to ensure that the lender will get their money back. In a secured sample promissory note in Texas, the borrower will supply assets, such as property, as collateral for the loan. Where the borrower defaults or cannot make the required payments, the lender can take ownership of the collateral to settle the amount owed.

  • Promissory notes in Texas are usually valid for four years after signing the note. If the amount hasn’t been paid back by the agreed-upon final date in the agreement and the lender hasn’t filed a lawsuit for the outstanding amount within these four years, the agreement will become unenforceable. This means that the borrower no longer has to pay the lender. Remember to clearly state your final date when using our free promissory note template for Texas.

  • You can collect on a promissory note in Texas in a few ways. If the borrower refuses to pay the agreed-upon amounts, the lender must file a civil lawsuit against the lender. If the lawsuit is successful, the lender can seize property from the borrower or garnish wages or intercept incoming money from other third parties to cover the debt.

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Promissory Note Template Texas

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A promissory note for Texas protects your loan and ensures that you’ll get paid following all the laws of the state.

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