Simple Assignment of Promissory Note
What this document covers
The Simple Assignment of Promissory Note is a legal document that facilitates the transfer of rights and interests in a promissory note from one party (the assignor) to another (the assignee). This form is specifically designed for straightforward assignments, ensuring that the necessary details of the assignor, assignee, and the promissory note are clearly recorded. Unlike more complex assignment agreements, this form focuses on simplicity and ease of use, making it suitable for all parties involved in the transaction.
Key parts of this document
- Name and address of the assignor.
- Name and address of the assignee.
- Date of the promissory note.
- Face amount of the promissory note.
- Name of the maker of the note.
- Signature of the assignor and date of assignment.
When to use this form
This form is useful in a variety of situations where one party wishes to transfer their rights to receive payment under a promissory note. Common scenarios include selling an investment, settling debts, or transferring payment rights as part of a business transaction. If you have a promissory note and want to assign the right to collect payments to another person or organization, this form addresses that need effectively.
Intended users of this form
This form is intended for:
- Individuals who hold a promissory note and wish to transfer their rights.
- Businesses that need to assign promissory notes as part of transactions.
- Financial institutions involved in the sale or assignment of notes.
Steps to complete this form
- Identify the parties: Fill in the names and addresses of both the assignor and assignee.
- Specify the promissory note: Enter the date and the face amount of the note being assigned.
- Provide details of the maker: Include the name of the individual or entity that executed the promissory note.
- Attach the promissory note: Ensure that a copy of the original note is included as Exhibit A.
- Sign the document: The assignor must print their name and sign on the designated line, including the date of signing.
Is notarization required?
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to attach a copy of the original promissory note.
- Not including complete addresses for both parties.
- Omitting the date of the assignment, which can create ambiguity.
- Inaccurate or incomplete details about the promissory note or maker.
Benefits of completing this form online
- Convenient access to the form that can be downloaded instantly.
- Editable fields allow for personalized customization to fit specific needs.
- Reliability of professionally drafted documents by licensed attorneys ensures compliance with legal standards.
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FAQ
"A promissory note is enforceable through an ordinary breach of contract claim." In other words, it's not required that the loan be secured; an unsecured loan is still enforceable as long as the promissory note is fully completed. Lender and borrower information.
To transfer a promissory note, it must be negotiable and/or have a provision that allows and explains transfer. In addition, it must comply with state statutes governing promissory notes and assignments thereof. Create a Promissory Note Transfer Agreement.
Total amount of money being loaned. Date of the loan. How the loan was delivered (cash, check, direct deposit) The name and address of the person loaning the money. The name and address of the person borrowing the money.
If you are the borrower, issue the promissory note to the institution or individual that needs it to obtain a loan for you. This should be done with an addendum stating the assignment of your rights or the completion of the assignment paperwork required by the lender.
A simple promissory note might be for a lump sum repayment on a certain date. For example, you lend your friend $1,000 and he agrees to repay you by December 1. The full amount is due on that date, and there is no payment schedule involved.
Date. The promissory note should include the date it was created at the top of the page. Amount. Loan terms. Interest rate. Collateral. Lender and borrower information. Signatures.
An assignment is the document that is the legal record of this transfer from one mortgagee to another. In a typical transaction, when the mortgagee sells the debt to another bank, an assignment is recorded and the promissory note is endorsed (signed over) to the new bank.
However, it is still smart to contact a lawyer to help you prepare a personal promissory note, even if you already used an online template. A lawyer can prepare and/or review the note to ensure that all state law requirements are included. This will help with enforceability if there are any issues down the road.
Write the date of the writing of the promissory note at the top of the page. Write the amount of the note. Describe the note terms. Write the interest rate. State if the note is secured or unsecured. Include the names of both the lender and the borrower on the note, indicating which person is which.
