A promissory note is a written promise to pay a debt. An unconditional promise to pay on demand or at a fixed or determined future time a particular sum of money to or to the order of a specified person or to the bearer.
Title: New Hampshire Checklist — Items to Consider for Drafting a Promissory Note Introduction: When creating a promissory note in New Hampshire, it's crucial to include various essential elements to ensure its legal validity and enforceability. This comprehensive checklist highlights the key factors to consider while drafting a promissory note that complies with New Hampshire laws. 1. Parties Involved: Clearly identify the parties involved in the promissory note, including the lender (the person lending money) and the borrower (the person receiving the loan). Include their full legal names and addresses. 2. Loan Amount and Terms: Specify the exact principal loan amount and the repayment terms, including the interest rate, if applicable. Ensure that the interest rate adheres to New Hampshire's usury laws to avoid any legal complications. 3. Repayment Schedule: Determine the repayment schedule including the frequency of payments (weekly, monthly, etc.) and the due dates. Clearly state the consequences of late or missed payments such as late fees or collection costs. 4. Collateral: If the loan is secured by collateral, provide a detailed description of the collateral pledged to secure the loan. Include specifics such as the type of collateral (property, vehicle, etc.), its value, and other relevant details. 5. Default and Remedies: Outline the circumstances under which a default may occur, such as missed payments or a breach of terms. Discuss the available remedies for the lender, including acceleration (declaring the entire loan due immediately), repossession of collateral, and legal action. 6. Governing Law: Specify that the promissory note is subject to and governed by the laws of New Hampshire. This indicates that any disputes or matters relating to the note will be resolved according to New Hampshire state laws. 7. Severability: Include a severability clause stating that if any provision of the promissory note is deemed unenforceable, it will not affect the validity of the remaining provisions. 8. Signatures and Notarization: End the promissory note with spaces for the borrower and lender to sign and date. Notarization is not legally required in New Hampshire, but it may add an extra layer of authenticity. Types of New Hampshire Checklist — Items to Consider for Drafting a Promissory Note: 1. Unsecured Promissory Note: This checklist is applicable when there is no collateral backing the loan. It focuses on the terms and conditions related to unsecured loans and emphasizes the borrower's creditworthiness. 2. Secured Promissory Note: This checklist is relevant when the promissory note is backed by collateral. It includes specific details about the pledged collateral, such as its description, value, and any additional agreements related to its possession and transfer. 3. Demand Promissory Note: This checklist is designed for promissory notes payable on demand. It emphasizes the immediate repayment feature of the loan and includes provisions related to the demand for payment.
