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."
A New Mexico Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment is an official document that signifies the intention of a mayor to settle the entire outstanding sum of a promissory note before its designated maturity date. This letter serves as a formal notice to the payee or lender that the borrower desires to accelerate the payment or prepay the note in full. The purpose of this letter is to outline the terms and conditions for the early settlement, ensuring proper documentation and compliance with relevant laws and regulations. It is crucial to mention specific keywords to make the content relevant. These keywords include "New Mexico," "Letter Tendering Full Payment," "Existing Balance," "Promissory Note," "Acceleration," and "Prepayment." Types of New Mexico Letters Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment can differ depending on the circumstances under which the note is being settled: 1. Acceleration of Promissory Note: This type of letter is used when the borrower wants to pay off the remaining balance of the promissory note earlier than the originally agreed-upon maturity date. It is usually triggered by certain events, such as default on payments or breach of the note's terms. 2. Prepayment of Promissory Note: In this case, the letter is sent to the lender to signify the borrower's intention to pay the outstanding balance of the note prior to its scheduled maturity date. Unlike acceleration, prepayment might not be prompted by a specific event but rather by the borrower's desire to reduce interest expenses or fulfill financial obligations. The content of a New Mexico Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment generally includes: 1. Heading: The document should begin with a clear heading, including the full name and address of the borrower (mayor) as well as the lender (payee). This information ensures proper identification of involved parties. 2. Date: Specify the date when the letter is written to document the timeline accurately. 3. Salutation: Begin the letter with a formal salutation addressing the lender, such as "Dear [Lender's Name]." 4. Introduction: Clearly state the purpose of the letter by expressing the intention to tender full payment for the outstanding balance on the promissory note due to acceleration or prepayment. 5. Promissory Note Details: Provide specific information about the promissory note, including the date it was issued, the principal amount, interest rate, maturity date, and any other terms relevant to the acceleration or prepayment. 6. Justification of Acceleration or Prepayment: Explain the circumstances or reasons for seeking acceleration or prepayment. This can include default on payment, change in financial circumstances, or strategic financial planning. 7. Offer of Full Payment: Present a precise and unconditional offer to settle the existing balance of the promissory note in full, including any accrued interest and applicable fees. 8. Request for Confirmation: Ask the lender to acknowledge and confirm receipt of the letter, acceptance of the full payment, and their willingness to release all rights and claims under the promissory note upon payment. 9. Contact Information: Provide current contact information for the borrower, including address, phone number, and email, for further communication or documentation purposes. 10. Closing and Signature: Conclude the letter with a professional closing, such as "Sincerely," followed by the borrower's full name and signature. By including these relevant keywords and addressing various types of letters based on the circumstances, this content can better assist individuals in drafting a New Mexico Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment.
