How to Write A Promissory Note

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How to Write A Promissory Note Powered By Docstoc
					                        WRITE A PROMISSORY NOTE
                (Equal Monthly Installments, All Principal and Interest Paid)

                                             NAMES
   Borrower: _______________________________________
   Lender:    _______________________________________

                                    PROMISE TO PAY
For value received, Borrower promises to pay Lender $ __________ and interest at the yearly
rate of _____% on the unpaid balance as specified below.

                             MONTHLY INSTALLMENTS
Borrower will pay ___ monthly installments of $________ each.

                        DATE OF INSTALLMENT PAYMENTS
Borrower will make an installment payment on the ______ day of each month beginning
_____________ until the principal and interest have been paid in full.

                               APPLICATION OF PAYMENTS
Payments will be applied first to interest and then to principal.

                                       PREPAYMENT
Borrower may prepay all or any part of the principal without penalty.

                                    LOAN ACCELERATION
If Borrower is more than ___ days late in making any payment, Lender may declare that the
entire balance of unpaid principal is due immediately, together with the interest that has accrued.
                                           SECURITY
   [ ] This is an unsecured note.
   [ ] Borrower agrees that until the principal and interest owed under this promissory note are
   paid in full, this note will be secured by a security agreement and Uniform Commercial Code
   Financing statement giving Lender a security interest in the equipment, fixtures, inventory
   and accounts receivable of the business known as__________________________.
   [ ] Borrower agrees that until the principal and interest owed under this promissory note are
   paid in full, this note will be secured by the mortgage / deed of trust covering the real estate
   commonly known as ____________________ and more fully described as follows:
   ________________________________.




                                    COLLECTION COSTS
If Lender prevails in a lawsuit to collect on this note, Borrower will pay Lender's costs and
lawyer's fees in an amount the courts finds to be reasonable.

                                   ENTIRE AGREEMENT
This is the entire agreement between the parties. It replaces and supersedes any and all oral
agreements between the parties, as well as any prior writings.

                            SUCCESSORS AND ASSIGNEES
This agreement binds and benefits the heirs, successors and assignees of the parties.

                                          NOTICES
All notices must be in writing. A notice may be delivered to a party at the address that follows a
party's signature or to a new address that a party designates in writing. A notice may be
delivered:
    (1) in person,
    (2) by certified mail, or
    (3) by overnight courier.

                                  GOVERNING LAW
This agreement will be governed by and construed in accordance with the laws of the state of
_________________.

                                       MODIFICATION
This agreement may be modified only by a writing signed by the party against whom such
modification is sought to be enforced.

                                              WAIVER
If one party waives any term or provision of this agreement at any time, that waiver will only be
effective for the specific instance and specific purpose for which the waiver was given. If either
party fails to exercise or delays exercising any of its rights or remedies under this agreement, that
party retains the right to enforce that term or provision at a later time.

                                       SEVERABILITY
If any court determines that any provision of this agreement is invalid or unenforceable, any
invalidity or unenforceability will affect only that provision and will not make any other
provision of this agreement invalid or unenforceable and such provision shall be modified,
amended or limited only to the extent necessary to render it valid and enforceable.
Dated:                ___________________________
Name of Business: ____________________________________, a
                      _______________________________________
By:                   _______________________________________
Printed Name:         _______________________________________
Title:                _______________________________________
Address:              _______________________________________




© Copyright 2010 Docstoc Inc.                                                              2
eable, any
invalidity or unenforceability will affect only that provision and will not make any other
provision of this agreement invalid or unenforceable and such provision shall be modified,
amended or limited only to the extent necessary to render it valid and enforceable.
Dated:                ___________________________
Name of Business: ____________________________________, a
                      _______________________________________
By:                   _______________________________________
Printed Name:         _______________________________________
Title:                _______________________________________
Address:              _______________________________________




© Copyright 2010 Docstoc Inc.                                                              3
______

   Printed Name: _______________________________________

   Title: ______________________________________________

   Address: ___________________________________________




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