Promissory Note - Personal Short Term Note with Balloon Payment and Amortization

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Promissory Note - Personal Short Term Note with Balloon Payment and Amortization Powered By Docstoc
					                    LOAN AGREEMENT - PROMISSORY NOTE

       FOR VALUE RECEIVED, the undersigned, [BORROWER], of [ADDRESS], (the

“Borrower”), promises to pay to the order of [LENDER], an individual with an address at

[ADDRESS], and his successors or assigns, the principal sum of SEVEN THOUSAND FIVE

HUNDRED DOLLARS ($7,500.00) together with interest on the unpaid principal amount at the

rate of eighteen percent (18%) according to the following terms.

       1.      DEBT: This Note evidences a debt from [BORROWER] to [LENDER] in the
principal amount of SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00).


       2.      TERM: The term of this note shall be six (6) months and the Borrower shall pay all
principal and interest hereunder no later than October 15, 2012, in accordance with the attached
schedule of payments. The amortization of the obligation hereunder shall be over a five (5) year
period as set forth below.


       3.      INTEREST: The interest rate on the principal balance shall be eighteen percent
(18%) per annum.


       4.      PAYMENTS: The Borrower shall make monthly payments of principal and
interest based on an amortization of the amounts owed calculated over a five (5) year term. The
payments shall begin on May 15, 2012 and shall be in the amount of $190.45 per month and shall
continue monthly until all sums due hereunder are paid in full. Borrower’s sixth (6th) and final
payment due October 1, 2012 will be a balloon payment comprised of all principal and accrued
interest not yet paid. Payments are amortized through April 15, 2017.
       Each payment must be postmarked or wired or delivered by the 15th day of each month.
Each payment shall be first applied to interest, which shall be calculated monthly based on the
above rate, and then to principal.
       All payments shall be made to [LENDER] and delivered or mailed to the following
address: [ADDRESS].




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        In the event that Borrower fails to make any payment in the full amount due and owing
hereunder within seven (7) days of the due date, she shall pay, in addition to interest accruing
thereon, a late charge in the amount of ten percent (10%) of any such overdue payment.


        5.      PREPAYMENT: Borrower may prepay the outstanding principal balance of the
Note at any time. However, upon full payment of this Note, Borrower agrees and understands
that Lender is entitled to receive payment of a minimum interest charge in the amount of $650.00.


        6.      ORIGINATION FEE: An origination fee in the amount of $350.00 is due and
payable to Lender. The Borrower may, at her option, defer this payment until the end of the
original loan term.

        7       DOCUMENT PREPARATION/ATTORNEY’S FEES: Borrower shall be
responsible for document preparation/attorney’s fees in the amount of $300.00 in connection with
the preparation of this Loan Agreement. The Borrower may, at her option, defer this payment
until the end of the original loan term.


        8.      DEFAULT: In the event of the occurrence of any one or more of the following
events ("Events of Default"), this Note shall, at the option of Lender, become immediately due and
payable in full, upon notice to Borrower to that effect:
        (a)     Failure by Borrower to make any payment of principal or interest hereunder on or
before the maturity date; or
        (b)     Failure to comply with any covenant, condition or agreement in this Note; or
        (c)     The death of Borrower; or
        (d)     Borrower or any Guarantor: (i) shall generally not pay, or shall be unable to pay, or
shall admit in writing its inability to pay its debts as such debts become due; or (ii) shall make an
assignment for the benefit of its creditors, or petition or apply to any tribunal for the appointment
of a custodian, receiver or trustee for it or a substantial part of its assets; or (iii) shall commence any
proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution,
or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or (iv) shall have
had any such petition or application filed against it in which an order for relief is entered or an
adjudication or appointment is made, and which remains un-dismissed for a period of sixty (60)


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days or more; or (v) shall indicate, by any act or omission, its consent to, approval of, or
acquiescence in, any such petition, application, proceeding, or order for relief or the appointment
of a custodian, receiver, trustee for all or any substantial part of its properties or assets; or
trusteeship to suffer any such custodianship, receivership, or trusteeship to continue un-discharged
for a period of sixty (60) days or more.

        9.      RIGHTS UPON DEFAULT: Upon default by Borrower, Lender may, in his sole
and absolute discretion, without notice, declare the entire then outstanding principal balance
hereunder, all interest accrued thereon, and any other sums due hereunder to be immediately due
and payable without any presentment or further demand or notice of any kind, all of which are
hereby expressly waived by Borrower. Upon default, Lender may employ an attorney to enforce
its rights and remedies, and Borrower hereby agrees to pay to Lender all reasonable attorney's fees,
plus all other reasonable expenses incurred by Lender in exercising any of its rights and remedies
upon default. The rights and remedies of Lender as provided by law and by this Note shall be
cumulative and may be pursued singly, successively, or together in the sole discretion of Lender.
The failure to exercise any such right or remedy shall not be a waiver or release of such rights or
remedies or the right to exercise any of them at another time.

        10.     WAIVER: All parties liable for payment of the Note, whether endorsers,
guarantors, or other parties, hereby waive presentment, demand, protest, notice of protest,
nonpayment, dishonor and acceleration of maturity and agree that the time for payment of this
Note may be extended from time to time, that this Note may be renewed from time to time, and
that any collateral securing payment of this Note may be released, all without notice to them and
without affecting, in any manner, their liability for payment of this Note.

        11.     GOVERNING LAW: This Note shall be interpreted, construed and enforced
according to the laws of the State of [STATE].

        12.     SEVERABILITY: If any provision or term hereof shall be held to be
unenforceable or invalid for any reason by any court of competent jurisdiction then such provision
or term shall be deemed to be severable from the remainder hereof and this Note shall be
enforced without regard to the unenforceable or invalid provision or term in the same manner as if
such term or provision has not been a part hereof.




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        13.       CAPTIONS AND REFERENCES: The captions of the paragraphs in this Note
are for the purpose of convenience only and are not intended to be part of this Note and shall not
be deemed to modify, explain, enlarge or restrict any of the provisions hereof.

        14.       SUCCESSORS AND ASSIGNS: The covenants herein contained shall bind, and
the benefits and advantages shall inure to the legal representatives, successors and assigns of the
parties hereto.



PRIOR TO SIGNING THIS LOAN AGREEMENT-PROMISSORY NOTE
THE BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
CONTAINED HEREIN AND ACKNOWLEDGES RECEIPT OF A
COMPLETED COPY OF THIS AGREEMENT/NOTE.



Date:
                                               BORROWER’S NAME



STATE OF [STATE]
COUNTY OF [COUNTY]


       On this         day of                       2012, before me, the undersigned personally
appeared and acknowledged that he executed the foregoing instrument for the purposes therein
contained. In witness whereof, I hereunto set my hand and official seal.



                                               Justice of the Peace/Notary Public
                                               My commission expires:




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                                            AMORTIZATION SCHEDULE


Month/Year           Payment              Principal             Interest Paid        Total Interest        Balance

May 15, 2012         $190.45              $77.95                $112.50              $112.50               $7,422.05

June 15, 2012        $190.45              $79.12                $111.33              $223.83               $7,342.93

July 15, 2012        $190.45              $80.31                $110.14              $333.97               $7,262.62

Aug.15, 2012         $190.45              $81.51                $108.94              $442.91               $7,181.11

Sept. 15 2012        $190.45              $82.73                $107.72              $550.63               $7,098.38

Oct. 15, 2012        $7,204.86*           $7098.38              $106.48              $657.11               $0



* The balloon payment does not include additional amounts owed in accordance with the provisions of the Loan Agreement-
Promissory Note including Origination Fees ($350.00) and Document Preparation/Attorney’s Fees ($300.00).




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Description: Promissory Note Personal Short Term Balloon Payment Amortization