The acknowledgement is the section at the end of a document where a notary public verifies that the signer of the document states he/she actually signed it. Typical language is: "State of ______, County of ______ (signed and sealed) On ____, 20__, before me, a notary public for said state, personally appeared _______, personally known to me, or proved to be said person by proper proof, and acknowledged that he executed the above Deed." Then the notary signs the acknowledgment and puts on his/her seal, which is usually a rubber stamp, although some still use a metal seal. The person acknowledging that he/she signed must be prepared to verify their identity with a driver's license or other accepted form of identification, and must sign the notary's journal. The acknowledgment is required for many official forms and vital for any document which must be recorded by the County Recorder or Recorder of Deeds, including deeds, deeds of trust, mortgages, powers of attorney that may involve real estate, some leases and various other papers.
Acknowledgments may also be drafted to affirm a variety of matters, acting in effect as a written confirmation of an act such as receipt of goods, services, or payment.
A Michigan Promissory Note — With Acknowledgment is a legal document used in the state of Michigan to establish an enforceable agreement between a lender and a borrower. This document outlines the terms and conditions of a loan, including the amount borrowed, interest rate, repayment schedule, and any collateral provided. The main purpose of using a Promissory Note is to create a written record of the loan details and ensure that both parties are in agreement and bound by the terms stated. It provides clarity and protection to both the lender and borrower, as it serves as proof of the loan and can be used as evidence in case of any disputes or collection efforts. The Promissory Note — With Acknowledgment also includes an acknowledgment section where both parties sign to confirm their understanding and acceptance of the terms. This section is crucial as it validates the note and ensures that the borrower is aware of their obligations and the consequences of defaulting on the loan. In Michigan, there are several types of Promissory Notes, each designed to meet specific borrowing situations: 1. Secured Promissory Note: This type of note is used when the borrower offers collateral, such as property or assets, to secure the loan. It gives the lender the right to seize and sell the collateral to recover the loan amount if the borrower fails to repay. 2. Unsecured Promissory Note: Unlike a secured note, an unsecured note does not require any collateral. This type of note relies solely on the borrower's promise to repay, making it riskier for the lender. Interest rates on unsecured notes are typically higher to compensate for the increased risk. 3. Demand Promissory Note: A demand note allows the lender to request repayment in full at any time. This type of note is beneficial when the lender wants the flexibility to call in the loan if circumstances change or the borrower becomes unable to meet the payment obligations. 4. Installment Promissory Note: An installment note establishes a fixed repayment schedule, dividing the loan amount and interest into regular payments over a specified period. This type of note is common for long-term loans, such as mortgages or auto loans. It is important to consult a legal professional or use a reputable template when drafting a Michigan Promissory Note — With Acknowledgment to ensure it adheres to the state's laws and accurately reflects the intended terms of the loan. Both parties should carefully review and understand the note before signing, and it is recommended to retain a copy for future reference.
