A sample of an acceleration clause in a promissory note would be: "the failure to pay any installment when due shall mature the entire indebtedness at the option of the holder of this Note." A sample of a prepayment clause in a promissory note would be: "the undersigned may prepay the principal amount outstanding in whole or in part without penalty."
Maine Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment of Note In the state of Maine, when an individual or entity decides to accelerate or prepay the balance of a promissory note, it is crucial to formally notify the lender through a Letter Tendering Full Payment. This letter serves as a legal document stating the intent to fulfill the financial obligation and settle the outstanding balance in its entirety. It ensures a smooth transaction and provides evidence of compliance with the terms of the promissory note. Keywords: Maine, Letter Tendering Full Payment, Existing Balance, Promissory Note, Acceleration, Prepayment, Financial Obligation, Settlement, Smooth Transaction, Compliance. Types of Maine Letter Tendering Full Payment of Existing Balance of Promissory Note: 1. Maine Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration: In situations where the borrower wishes to pay off the promissory note earlier than the agreed-upon terms, acceleration occurs. This type of letter explicitly informs the lender about the acceleration and requests details regarding the exact outstanding balance, any potential fees, and instructions for the payment process. Keywords: Maine, Letter Tendering Full Payment, Existing Balance, Promissory Note, Acceleration, Pay off, Agreed-upon terms, Outstanding balance, Fees, Payment process. 2. Maine Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Prepayment: Prepayment refers to the act of settling the outstanding balance of a promissory note before its maturity date. This type of letter is crafted to notify the lender of the borrower's intention to prepay the note and seeks information on the final balance, any accrued interest, and the preferred method of payment. Keywords: Maine, Letter Tendering Full Payment, Existing Balance, Promissory Note, Prepayment, Outstanding balance, Maturity date, Accrued interest, Method of payment. 3. Maine Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration and Prepayment: In certain cases, borrowers may want to both accelerate and prepay their promissory note. This letter encompasses both situations, requesting the lender to provide the total balance due, any interest earned, applicable fees, and precise instructions for settling the accelerated and prepaid amount. Keywords: Maine, Letter Tendering Full Payment, Existing Balance, Promissory Note, Acceleration, Prepayment, Total balance due, Interest earned, Applicable fees, Settlement Instructions.
