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 North Carolina Promissory Note — With Acknowledgment is a legally binding document used when one party (the borrower) promises to repay a specific amount of money to another party (the lender) within a specified timeframe. This written agreement serves as proof of the loan and outlines the terms and conditions, including repayment schedule, interest rate, and any additional provisions agreed upon by both parties. When drafting a North Carolina Promissory Note — With Acknowledgment, certain elements are crucial to ensure its validity and enforceability. These include: 1. Parties involved: Clearly state the full names and contact information of both the borrower and lender. 2. Loan details: Specify the exact amount borrowed and the terms of repayment, including the interest rate (if applicable) and the method of payment (e.g., monthly installments, single payment). 3. Collateral (if applicable): If the loan is secured by collateral, such as real estate or a vehicle, provide a detailed description of the collateral and its value. This helps protect the lender's interests in case of default. 4. Late payment and default terms: Clearly define the consequences of late or missed payments, including any late fees or penalties. Outline the options available to the lender in case of default, such as legal action or seizure of collateral. 5. Governing law: Specify that the Promissory Note is governed by North Carolina state laws to ensure its validity and enforceability in the state's courts. North Carolina recognizes two main types of Promissory Notes — With Acknowledgment: 1. Secured Promissory Note — With Acknowledgment: This type of note includes collateral provided by the borrower to secure the loan. The collateral serves as a guarantee to the lender that they can recover their investment in case of default. Providing collateral often leads to lower interest rates for the borrower. 2. Unsecured Promissory Note — With Acknowledgment: Unlike the secured note, this type does not require any collateral. It relies solely on the borrower's promise to pay back the loan. Since there is no security for the lender, interest rates for unsecured loans are generally higher. By utilizing a well-drafted North Carolina Promissory Note — With Acknowledgment, both parties can clearly establish their rights, obligations, and expectations regarding the loan. It serves as a vital legal protection and ensures transparency during the lending process. Nevertheless, it is recommended to consult with a legal professional to create a customized Promissory Note that adheres to all applicable laws and suits the specific lending arrangement.
