This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Michigan Installment Promissory Note with Acceleration Clause and Collection Fees is a legally binding document that establishes the terms and conditions of a loan agreement between a lender and a borrower based in Michigan. This type of promissory note is used when a borrower agrees to repay a loan amount, along with accrued interest, in regular installments over a specific period. The Acceleration Clause included in the promissory note allows the lender to demand immediate payment of the entire outstanding loan balance if the borrower fails to meet specific payment obligations or breaches the terms of the agreement. This clause provides protection to the lender by enabling them to ensure full repayment without resorting to lengthy legal proceedings. The Collection Fees provision is another significant aspect of a Michigan Installment Promissory Note. It outlines the charges that the borrower must pay in case of default or late payment. These fees are typically charged for the lender's expenses, including legal fees, collection agency charges, or any other costs associated with recovering the outstanding debt. Collection fees encourage borrowers to make timely repayments and act as a deterrent against defaulting on the loan. Within Michigan, there are several types of Installment Promissory Notes with Acceleration Clause and Collection Fees, each serving different purposes: 1. Basic Installment Promissory Note with Acceleration Clause and Collection Fees: This is the standard version of the promissory note that includes the essential terms and conditions, acceleration clause, and collection fee provisions. 2. Secured Installment Promissory Note with Acceleration Clause and Collection Fees: This type of promissory note includes additional clauses that grant the lender security interest in a specified collateral, such as real estate, vehicles, or other valuable assets. If the borrower defaults, the lender has the right to seize and sell the collateral to recover the outstanding debt. 3. Unsecured Installment Promissory Note with Acceleration Clause and Collection Fees: Unlike a secured note, this type is not backed by any collateral. Therefore, the lender's only recourse in case of default is to pursue legal action to recover the debt. The acceleration clause and collection fees still apply. 4. Demand Installment Promissory Note with Acceleration Clause and Collection Fees: This variation enables the lender to demand full payment of the outstanding balance at any given time, regardless of the initially agreed-upon repayment schedule. The acceleration clause is triggered when the lender chooses to exercise their right to demand immediate payment. In summary, a Michigan Installment Promissory Note with Acceleration Clause and Collection Fees is a comprehensive legal document that outlines the repayment terms, rights, and obligations of both the lender and borrower. By including an acceleration clause and collection fees provisions, it offers added protection to the lender and acts as a deterrent against non-payment or default. Different variations of this promissory note exist to suit varying circumstances and needs.
