This form is a sample letter in Word format covering the subject matter of the title of the form.
State Bar Of Texas Promissory Note Form In Montgomery
Category:
State:
Multi-State
County:
Montgomery
Control #:
US-0001LTR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
No, signing a contract in front of a notary is not required. A notary's involvement does not make a contract somehow more binding or more enforceable than it otherwise would be. (To learn what makes a contract legally valid, see the "What makes a contract legally enforceable?" section in Understanding Contracts.)
Yes, a properly executed promissory note is legally binding. As long as the note contains all necessary elements, is signed by the involved parties, and complies with applicable laws, it's enforceable in court if the borrower defaults or fails to meet their obligations.
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.
No, you can't play your own promissory note.
A promissory note must include the date of the loan, the loan amount, the names of both the lender and borrower, the interest rate on the loan, and the timeline for repayment. Once the document is signed by both parties, it becomes a legally binding contract.
Although financial institutions may issue promissory notes—for instance, you might be required to sign one to take out a small personal loan—they also allow companies and individuals to get financing from a non-bank source.
Companies generally carry promissory notes on their balance sheets at the amount of the debt yet to be repaid. Fair market value for a promissory note is determined by calculating the present value of the expected payments on the note.
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.
