Promissory Note (for a seasonal loan)
1. For Value Received, ___[borrower name]___ ("Borrower") promises to pay to the order of
___[lender name]___, of ___[city, state]___ ("Lender"), the sum, in United States dollars, of
___[amount of loan, spelled out]___ dollars ($_______), plus interest accruing at an annual rate
of ___[interest rate, spelled out]___ percent (____%) on the unpaid principal amount beginning
on ___[loan start day/month]___, ___[loan start year]___ (the "Debt").
2. Transferability. Borrower understands that the Lender may transfer this Note. The Lender or
anyone who takes this Note by Transfer and who is entitled to receive payments under this Note
is called the "Note Holder" and will have the same rights and remedies as the Lender under this
3. Payments. Payment of the Debt shall be made in [choose one: monthly/quarterly/annual]
installments by [choose one]:
[ ] personal check sent to __________[address where check is to be mailed]____________
[ ] direct deposit to ____[institution and account number where deposit is to be made]____
[ ] ________________________[describe other form of payment]____________________
Payments shall include principal and interest, as follows:
Beginning on ___[day/month/year repayment begins]___ and continuing until
___[day/month/year of final due date]___, Borrower shall make monthly payments as described
For the calendar months of ___[list months of high season]___ of each year, Borrower shall pay
on the ___[for example, 1st or 15th]___ day of each month the sum of $___[high-season
payment amount]___ to the Lender or Note Holder ("High-Season Monthly Payment").
For the calendar months of ___[list months of low season]___ of each calendar year, Borrower
shall pay on the ___[for example, 1st or 15th]___ day of each month the sum of $___[low-
season payment amount]___ to the Lender or Note Holder ("Low-Season Monthly Payment").
Finally, on ___[month/day/year of final due date]___, Borrower shall pay all amounts remaining
due under the terms of this Note.
___[Name of schedule]___ lays out the payment schedule for this Note.
4. Grace Period and Late Fee. If the Borrower fails to make any payment in the full amount and
within ___[number of days, spelled out]___ (___[number in figures]___) calendar days (the
"Grace Period") after the date it is due, Borrower agrees to pay a late charge to the Lender or
Note Holder in the amount of $_______ (the "Late Fee"). Borrower will pay this Late Fee
promptly but only once on each late payment.
[Choose one of the following alternative clauses:]
5. Security. This is an unsecured note.
[End Alternative A]
5. Security. Borrower agrees that until this Note is paid in full (including principal and interest, if
any), this Note will be secured by a separate security agreement (incorporated here as
Attachment __[fill in]__) and, if applicable, a Uniform Commercial Code Financing Statement,
giving Lender a security interest in the following property:
[End Alternative B]
6. Default and Acceleration. If any installment payment due under this Note is not received by
Lender within the Grace Period, the note will be in default and the entire amount of unpaid
principal will become immediately due and payable at the option of Lender without prior notice
of default to Borrower.
7. Prepayment. This Note may be prepaid in full at any time without cost or penalty to the
8. Attorneys' Fees. If Lender prevails in a lawsuit to collect on this note, Borrower agrees to pay
Lender's attorneys' fees in an amount the court finds to be just and reasonable.
9. Waiver. The undersigned and all other parties to this Note waive the following requirements:
presentment of the Note for payment by Lender
refusal of payment by Borrower after presentment of the Note by Lender, otherwise
known as dishonor, and
Lender’s notification to Borrower of Borrower’s refusal to pay.
10. Lender’s Rights. Lender’s decision not to exercise a right or remedy under this Note at a
given time does not waive the Lender’s ability to exercise that right or remedy at a later date.
11. Liability of Individual Borrowers. The term "Borrower" may refer to one or more borrowers. If
there is more than one borrower, they agree to be jointly and severally liable.
12. Governing Law. This agreement will be governed by and construed in accordance with the
laws of the state of __________________.
Borrower's signature: ________________________
Print name: ________________________________