Add a Calculated Field Legal Illinois Promissory Notes Forms For Free

The borrower will likely argue it should be 8% per annum, which is the legal rate of interest. As a matter of contract law, if the parties did not agree on a lawful interest rate (i.e. 16% or less on a loan of less than $20,000.00) it would stand to reason that the legal interest rate of 8% per annum should apply.

It must include all the mandatory elements such as the legal names of the payee and maker's name, amount being loaned / to be repaid, full terms of the agreement and the full amount of liability, beside other elements. The note must clearly mention only the promise of making the repayment and no other conditions.

Promissory notes are quite simple and can be prepared by anyone. They do not need to be prepared by a lawyer or be notarized. It isn't even particularly significant whether a promissory note is handwritten or typed and printed.

You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.

But what exactly do you need to write a promissory note? Include their full legal names, addresses, and contact numbers—include any co-signers if applicable. The terms of this note should specify the amount borrowed, repayment terms (including interest rate, if applicable), and the due date or schedule of payments.

Promissory Notes - The Basics Identification of Parties. Amount owed and interest to be charged. Date of payments. Right to assign (transfer the obligation to another.) Place the Note is entered into and to be enforced. Signature Line.

In Illinois, the maximum interest rate that can be charged on a promissory note is 9% per year, unless otherwise provided by law or by agreement between the parties. The above requirements for promissory notes are general guidelines, and specific details may vary depending on the circumstances of each case.

After signing, the parties should indicate the date they signed the contract. In Illinois, a promissory note does not need a notary or witness.

Important Points to Remember about Promissory Notes A Promissory Note must always be written by hand. It must include all the mandatory elements such as the legal names of the payee and maker's name, amount being loaned / to be repaid, full terms of the agreement and the full amount of liability, beside other elements.