A Cognovit Promissory Note documents a loan transaction but also allows the creditor
to obtain a court judgment against the debtor without going to trial. In this template
document the debtor agrees that in the event of a default of the loan obligations by the
debtor, a judgment can be entered against the debtor without a trial. Only a few select
states allow the use of this type of promissory note and state law should be consulted
before using such an agreement. Some states that may allow the use of this type of
promissory note are Ohio, Pennsylvania, Maryland, Virginia and Delaware.
COGNOVIT PROMISSORY NOTE
AMOUNT: $____________________ DATE: __________
INTEREST RATE: $____________________ DUE DATE: ___________
For value received, the undersigned acknowledges itself/himself/herself indebted and
promises to pay to the order of _______________ (the “Creditor”) the sum of
__________________ ($________) Dollars of lawful money at __________________,
[Comment: insert location for payment] or such other address as the Creditor in writing may
direct, payable as follows:
1. The sum of __________________ dollars ($________)is payable to the Creditor
on or before _______________________;
2. The balance of the Promissory Note outstanding is to be repaid in equal consecutive
monthly instalments of _____________ dollars ($_______) payable on the _____ day of
each and every month, commencing on ______________; provided, however, that the
last such monthly instalment shall be due and payable on the ________ day of
___________, 20__ and shall be in the amount of_____________ dollars ($_______);
3. This Promissory Note is open for repayment at any time or times in whole or in part
4. The undersigned hereby waives demand and presentment for payment, and notice of non-
payment and notice of protest and dishonor of this Promissory Note. The undersigned
further agrees to pay all costs of collection, including legal fees for an attorney in case the
principal of this Promissory Note or any payment on the principal thereon is not made at
the maturity thereof or when otherwise due.
5. This Promissory Note shall be governed by the laws of the Province/State of
________________, which laws shall be applicable to the interpretation, construction and
6. In default of payment of the principal amount, interest or other amounts secured by this
Promissory Note or upon the bankruptcy or insolvency of the undersigned or upon the
filing of a petition in bankruptcy against the undersigned or upon the making of a
proposal in bankruptcy by the undersigned, the whole of the monies secured by this
Promissory Note remaining unpaid shall, at the option of the Creditor, forthwith become
due and payable and all the powers in and by the Promissory Note or by law conferred in
case of default shall become exercisable.
7. The undersigned, hereby authorizes any attorney at law to appear in any Court of
applicable jurisdiction after the above-referenced indebtedness becomes due to the
Creditor, whether by acceleration or otherwise, to waive the issuing and service of
process, and to confess judgment against the undersigned in favour of the Creditor for the
amount then appearing due together with all costs of the suit, and to waive all errors and
all rights of appeal and stays of execution. No such judgment or judgments against the
undersigned shall be a bar to a subsequent judgment or judgments against the
undersigned against whom judgment has not been obtained hereon; this being a joint and
several warrant of attorney to confess judgment.
DATED at ____________________, this _____ day of _____________, 20____.
BY SIGNING THIS PROMISSORY NOTE, YOU GIVE UP YOUR RIGHT TO NOTICE
AND COURT TRIAL. IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY
BE TAKEN AGAINST YOU WITHOUT PRIOR KNOWLEDGE, AND THE POWERS
OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY
CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED
GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE
AGREEMENT, OR ANY OTHER CAUSE.
Witness: (Debtor Name)
or if Debtor a Company
I have authority to bind the Company.
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