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Cognovit Promissory Note

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Cognovit Promissory Note Powered By Docstoc
					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

                                      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
      without penalty.

   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
      enforcement hereof.

   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____.


                                                     WARNING

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

                                                                 (DEBTOR)
                                                                 Per:



                                                                 Name:
                                                                 Title:
                                                                 I have authority to bind the Company.




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DOCUMENT INFO
Description: 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.