North Dakota Demand for Payment of an Open Account by Creditor

• Category: Loans and Lending - Payment Demands
• State: Multi-State
• Control #: US-0245BG
• Format: Word; Rich Text

Description

An open account is created when the parties intend that the individual items of the account will not be considered independently, but as a connected series of transactions. In addition, the parties must intend that the account will be kept open and subject to a shifting balance as additional related entries of debits and credits are made, until either party decides to settle and close the account. In an open account, there is but one single and indivisible liability arising from the series of related and reciprocal debits and credits. This single liability is to be fixed at the time of settlement, or following the last pertinent entry of the account. Finally, the balance must be mutually agreed on by the parties or implicitly imposed on them by law.

North Dakota Demand for Payment of an Open Account by Creditor: A North Dakota Demand for Payment of an Open Account by Creditor is a legally binding document that is used to demand payment from a debtor for an outstanding open account balance. This document is specifically designed for use in North Dakota and follows the state's laws and regulations. The demand for payment is typically made by a creditor who has provided goods or services to a debtor on credit terms. When the debtor fails to make the required payments on time, the creditor has the right to pursue legal action to recover the outstanding balance. The North Dakota Demand for Payment of an Open Account by Creditor serves as a formal notice to the debtor, clearly stating the total amount owed, the due date of the payment, and any applicable interest or fees. It also informs the debtor about the consequences of failing to make the payment within a specified period, such as legal action or reporting to credit bureaus. Keywords: North Dakota, demand for payment, open account, creditor, debtor, outstanding balance, legal action, credit terms, due date, interest, fees, notice, consequences, credit bureaus. Different types of North Dakota Demand for Payment of an Open Account by Creditor: 1. Initial Demand for Payment: This type of demand is sent to the debtor as a first step after a default occurs. It notifies the debtor of the outstanding balance and demands immediate payment. 2. Final Demand for Payment: If the initial demand for payment does not result in the debtor making the payment, a final demand is issued. This document gives the debtor a final opportunity to settle the outstanding balance before further legal action is taken. 3. Demand for Payment with Interest: In cases where the debtor has failed to make timely payments, interest charges may be applied to the outstanding balance. A demand for payment with interest highlights the total amount owed, including any accrued interest, and demands full payment. 4. Demand for Payment with Late Fees: If the original credit agreement includes provisions for late fees, a demand for payment with late fees can be issued. This document outlines the total amount owed, including any late fees incurred, and requires prompt payment. 5. Demand for Payment with Collection Costs: If the creditor has incurred additional costs in attempting to collect the outstanding debt, such as legal expenses or third-party collection agency fees, a demand for payment with collection costs may be sent. This document includes the total amount owed, including the additional costs, and demands full payment. Keywords: initial demand, final demand, interest, late fees, collection costs, outstanding balance, legal action, credit agreement, debt, payment, default, settlement, opportunity