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."
Description: When it comes to fulfilling your financial obligations or opting for early repayment of a Promissory Note in North Carolina, a "Letter Tendering Full Payment of Existing Balance" serves as a formal document to convey your intention. This letter acknowledges your desire to settle the remaining balance of the Promissory Note before its agreed-upon maturity date due to either an acceleration clause or your choice to make an early payment. Keywords: North Carolina, Letter, Tendering Full Payment, Existing Balance, Promissory Note, Acceleration, Prepayment. Types of North Carolina Letters Tendering Full Payment: 1. North Carolina Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration: This type of letter is utilized when the promissory note's acceleration clause is triggered. An acceleration clause allows the lender to declare the entire unpaid balance of the loan due immediately if the borrower fails to meet certain conditions outlined in the agreement. 2. North Carolina Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Prepayment: This type of letter is used when the borrower decides to repay the Promissory Note earlier than the agreed-upon maturity date. By making this early payment, the borrower seeks to settle the remaining balance of the loan, including any outstanding interest, fees, or charges. In both instances, the letter should clearly state the borrower's intent to tender full payment of the existing balance, provide the relevant information regarding the Promissory Note (such as the loan identification number, date of agreement, and outstanding amount), and include any supporting documentation or instructions requested by the lender. It is essential to draft the letter professionally and in accordance with legal standards to ensure both parties' awareness and mutual agreement regarding the early settlement of the Promissory Note.
