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 Dakota Promissory Note — with Acknowledgment is a legally binding written contract that outlines the terms and conditions for one party (the "borrower") to repay money borrowed from another party (the "lender"). This document is essential for establishing a clear understanding between the borrower and lender regarding the loan. Within North Dakota, various types of Promissory Notes with Acknowledgment exist to cater to different lending scenarios and requirements. Some common types of Promissory Notes include: 1. Unsecured Promissory Note: This type of note is issued when there is no collateral involved. It signifies that the lender is relying solely on the borrower's promise to repay. 2. Secured Promissory Note: When collateral is involved, such as property, vehicles, or other valuable assets, a secured Promissory Note is used. This type of note ensures that if the borrower defaults on the loan, the lender has the legal right to claim the specified collateral. 3. Installment Promissory Note: An installment Promissory Note is devised when the loan is split into fixed periodic payments, including both principal and interest. This type of note helps borrowers manage repayment by spreading it over a predetermined period. 4. Demand Promissory Note: A Demand Promissory Note allows the lender to request repayment of the outstanding loan balance at any time. This type of note provides the flexibility to call in the loan when the lender deems it necessary. 5. Balloon Promissory Note: A Balloon Promissory Note allows borrowers to make smaller payments over a specific period. However, at the end of the term, a single substantial payment, known as the balloon payment, is required. In all types of North Dakota Promissory Notes, the Acknowledgment section plays a crucial role. It includes the borrower's acknowledgment that they understand their obligations under the note and confirms their intention to follow its terms and conditions. This not only acts as a protective measure for the lender but also serves as evidence that the borrower has willingly entered into the loan agreement. When drafting a North Dakota Promissory Note — With Acknowledgment, it is important to include specific details such as the loan amount, interest rate, repayment schedule, late payment penalties, default consequences, and any specific terms or conditions agreed upon by both parties. It is recommended to consult with a legal professional to ensure that the Promissory Note aligns with state laws and adequately protects the lender's interests.
