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This is an agreement between a lender and a borrower, whereby the borrower promises to pay the lender a predetermined sum of money at some point in the future. The agreement sets forth the interest rate that is added to any unpaid balance. This particular promissory note calls for installment payments that are to be paid to the lender on a specified day of each month. This document should be used by small businesses or other entities that want to establish an installment plan to repay a loan.
Promissory Note Template This is an agreement between a lender and a borrower, whereby the borrower promises to pay the lender a predetermined sum of money at some point in the future. The agreement sets forth the interest rate that is added to any unpaid balance. This particular promissory note calls for installment payments that are to be paid to the lender on a specified day of each month. This document should be used by small businesses or other entities that want to establish an installment plan to repay a loan. PROMISSORY NOTE $____ [Instruction: Insert Amount] ___________ [Instruction: Insert Date] FOR VALUE RECEIVED, the undersigned, ___________ [Instruction: Insert Borrower Name] (“Maker”) promises to pay to the order of ___________ [Instruction: Insert Lender Name] (“Payee”), in monthly installments (“Monthly Installments”) as defined below, at ___________ [Instruction: Address] (or at such other address as may subsequently be designated by Payee by written notice to Maker) the sum of ___________ Dollars ($____) [Instruction: Insert Amount], together with compound interest, from the date hereof until paid in full, at the rate of ___________ (__%) per annum [Instruction: Insert Percent]. All computations of interest will be made by Payee on the basis of a three hundred sixty five (365) days year, for the actual number of days elapsed in the relevant period (including the first day but excluding the last). In no event shall interest to be paid hereon exceed the maximum rate permitted by applicable law and, if, for any circumstances whatsoever fulfillment of any of the provisions of this Note shall require exceeding such maximum rate, the obligation to be fulfilled shall be reduced to the limit thereof; any sums received by Payee in excess of such maximum rate shall be applied to the unpaid principal balance of this Note. 1. Payment and Prepayment. A. Until the Loan or Note is paid in full, for whatever reason, the unpaid principal and accrued interest shall be payable in Monthly Installments, of ___________ Dollars ($____) [Instruction: Insert Amount] payable on the first of each month (“Installment Due Date”), and continuing until the entire balance, including the principal and all interest accrued, is paid in full. B. Principal and interest on this Note shall be payable in lawful money of the United States of America. All payments, when paid, shall be applied first to the payment of accrued interest and then the balance thereof to principal. C. Maker reserves the right to prepay this Note, in whole or in part, with no prepayment penalty. 2. Remedies. If Maker material breaches any of its obligations under this Note or any document or instrument securing this Note, all of the unpaid principal balance hereof, together with all accrued but unpaid interest, shall be due and payable, at the option of the Payee. Failure to exercise this option shall not constitute a waiver of the right to exercise the same in the event of any subsequent default. Maker shall pay all reasonable costs of collection, including without limitation, court costs, reasonable attorney’s fees and expenses, and all other expenses of collection permitted by law. Maker expressly waives presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note as well as all other notices of any kind. 3. Miscellaneous. A. All notices, requests, demands and other communications hereunder shall be in writing delivered by registered or certified mail, return receipt requested, postage prepaid, at the addresses’ first indicated above, or at such other address as the parties may designate by valid notice. B. Maker will not assign or transfer any of its benefits or obligations arising under this Note. C. In the event any one or more of the provisions of this Note shall, for any reason, be held to be invalid, illegal or unenforceable, the same shall not affect any other provision of this Note and the remaining provisions of the Note shall remain in full force and effect. D. No waiver or modification of any of the terms or provisions of this Note shall be valid or binding unless set forth in a writing signed by a duly authorized officer of Payee, and then only to the extent therein specifically set forth. If more than one person executes this Note, their obligations hereunder shall be joint and several. E. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed in accordance with the laws of the State of _____________, [Instruction: Insert State], applicable to agreements to be wholly performed therein, with jurisdiction exclusive to the Federal and State courts located in the County of _____________ [Instruction: Insert County], State of ______________ [Instruction: Insert State]. IN WITNESS WHEREOF, Maker has executed this Note as of the day and year first written above. MAKER: ________________________________ [Instruction: sign] By: ___________________________ [Instruction: Insert Name of Signatory] Title: ___________________________ [Instruction: Insert Title of Signatory]
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