STANDARD PROMISSORY NOTE
DATE OF VALIDITY:
This Promissory Note, referred to hereinafter as the !the Note” commences as of ____/_____/20____
PARTIES:
This Note hereby binds in agreement the following named parties:
• THE BORROWER: _______________(name of signee), with the registered address of
__________________________, in the town of________ in the state of ____________, referred to
hereinafter as the !Borrower”.
• THE LENDER: _______________ (name of signee), with the registered address of
__________________________, in the town of __________ in the state of _____________, referred
to hereinafter as !the Lender”.
LOANED AMOUNT:
• PRINCIPAL SUM: The Borrower promises to pay the Lender the principal sum of ___________
Dollars ($_________) hereinafter referred to as the !Borrowed Money”.
• INTEREST RATE: Interest will accrue on the unpaid sum at a rate of ________% per annum,
beginning from the Start Date and following the Terms and Conditions stated below.
LOANED AMOUNT:
1. PAYMENTS: The full balance of this Note, including any and all accrued interest and late fees, is
due and payable on ____/_____/20____, hereinafter referred to as !the Due Date”.
The payments for the sum owed by the Borrower will be paid via one of the following options:
☐ LUMP SUM - The Borrower will pay a single lump sum, comprising the combined principal
and interest of ______________ Dollars ($_________________) by the Due Date.
☐ INSTALLMENTS - The Borrower will pay the principal and interest in regular installments
of _____________ Dollars ($________________) on a:
☐ weekly basis, with any remaining balance payable on the Due Date.
☐ monthly basis, with any remaining balance payable on the Due Date.
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☐ quarterly basis, with any remaining balance payable on the Due Date.
2. SECURITY: The Borrowed Money stated in this Note will be:
☐ SECURED - There shall be Property described as _________________ hereinafter referred to
as !the Security” which will transfer to the possession and ownership of the Lender
IMMEDIATELY in the event of a default on the Borrowed Money owed*.
☐ UNSECURED - NO SECURITY will be provided with this Note.
* IMPORTANT: The Security stated above cannot be transferred or sold without the permission of the Lender
before the agreed-upon Due Date. If this provision is breached by the Borrower, the Lender may declare the
entire sum owed by this Note immediately due and payable unless prohibited by local law. Additionally, the
Lender has the right to accept the named Security as full payment for the Borrowed Money, unless If the
property"s market value is below the sum owed. If the property does not sufficiently cover the money owed the
Borrower will be liable for any remaining balance, which will accrue interest at the maximum rate permitted by
law.
3. LATE PAYMENTS AND DEFAULT PROVISIONS:
a. FEE - A late payment fee of _________ Dollars ($__________) will be charged if an
installment is not paid on time or the money is not returned on the Due Date.
b. INTEREST RATE: If the Borrower does not pay the Note in full on the Due Date or does
not pay an installment on time as agreed, the unpaid principal shall accrue interest at the
maximum rate permitted by law until the Borrower is no longer in default.
c. ACCELERATION: If the Borrower defaults on the payment of this Note or is in default of
another provision of this Note, and it is not cured within the minimum allowed time by law
after written notice of the default is provided, the Lender may declare all outstanding sums
immediately due and payable.
4. ALLOCATION OF PAYMENTS: Payments by the Borrower will be credited against the
Borrowed Money owed in the following order:
PAYMENT ALLOCATION ORDER MONEY OWED BY THE BORROWER
1st Late fees the Borrower owes
2nd Interest due
3rd The principal sum
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5. PREPAYMENT: The Borrower may repay the sums of money owed in this Note ahead of the
payment schedule without penalty or additional fees.
6. ATTORNEY"S FEES AND COSTS:
a. The Borrower shall pay all costs that the Lender incurs when enforcing this Note and
collecting debts owed after a default, including reasonable attorneys"#fees.
b. If the Lender or Borrower pursues legal action to enforce this Note, the successful party may
recover reasonable attorneys"#fees and costs (including those incurred in any bankruptcy
proceeding or appeal) from the unsuccessful party.
7. ENFORCEABILITY OF THIS NOTE:
c. NON-WAIVER: Failure or delay by the Lender in exercising the Lender"s rights under this
Note will NOT be considered a waiver of those rights.
d. SEVERABILITY: Any provision within this Note that is determined to be void or
unenforceable for any reason will not invalidate the enforceability of any other provision.
e. INTEGRATION: There are no verbal or other agreements that alter or affect the terms of
this Note. This Note may NOT be modified or amended except by a written agreement signed
by both the Borrower and the Lender.
8. NOTICE: Any notices required or permitted by this Note must be given in writing and delivered
either:
a. in person; or
b. by certified mail, postage prepaid, return receipt requested; or
c. by facsimile; or
d. by a commercial overnight courier that guarantees next-day delivery and provides a receipt.
All such notices must be made to the parties at the addresses listed on this Note.
9. CO-SIGNER: (Check the appropriate box below)
☐ CO-SIGNER - This Note will have a Co-Signer, known as _______________, referred to
hereinafter as !the Co-Signer”*.
☐ NO CO-SIGNER - - This Note does not have a Co-signer.
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* IMPORTANT: The Co-signer agrees to and acknowledges the liabilities and obligations on behalf of the
Borrower under the terms of this Note. If the Borrower fails to make payment, the Co-Signer will be personally
responsible and guarantees the payment of the principal, late fees, and any accrued interest under the terms of
this Note.
10. GOVERNING LAW: This Note shall be governed by the laws in the State of ________________.
PARTY SIGNATURES:
IN WITNESS WHEREOF the parties have duly
Lender’s Signature___________ Date ____/____/_____
Print Name_______________
Borrower’s Signature___________ Date ____/____/_____
Print Name_______________
Co-Signer Signature___________ Date ____/____/_____
Print Name_______________
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Witness Signature___________ Date ____/____/_____
Print Name_______________
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