Simple Promissory Note

Description

Basic promissory note to use when borrowing funds.

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Shared by: Raymond Spiess
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posted:
11/13/2008
language:
English
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PROMISSORY NOTE Date: _________________ Amount: ________________ FOR GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, I, ____________________________________ ("Payor") for myself individually promise to pay to _________________________ ("Payee") or order, at _______________________________________________________________, or at such other place as a Payee may designate, the sum of $___________ plus interest at the rate of _____________ per annum payable at a minimum of $____________ per year. In any given month, a minimum of $____________shall be paid in payments of no more than two payments per month in the amount of no less than $__________ per payment. Once $______________ has been paid in any given year, no additional payments need be paid during the course of that calendar year. There is no penalty for making additional payments. If the payor fails to make payments as provided, then payee shall provide written notice to Payor who shall have ten (10) days from the date of such notice to cure the default. Payments hereunder shall continue until the total principal amount and any interest due is paid. The obligation to pay money hereunder shall be secured by this promissory note. This promissory note is executed in connection with an agreement dated ___________. This promissory note is payable in lawful money of the United States of America. Should any action be commenced to enforce the terms hereof, such shall be by arbitration before a single arbitrator in Los Angeles, pursuant to the rules of the American Arbitration Association. The prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred. Service on Payor can be by any method approved by the Code of Civil Procedure of the State of California and by mailing any Demand for Arbitration to Payor at _________________________________ or any update of those addresses supplied to Payee by Payor. Payor will not defend such arbitration on any grounds other than whether Payor has been fully credited for the payments, which Payor has made to Payee. (Payor) ________________________________ (Payee) ______________________________

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