Promissory Note with Confessed Judgment Provisions
Understanding this form
A Promissory Note with Confessed Judgment Provisions is a legal document where a borrower (the maker) agrees to repay a specified loan amount to a lender, including interest. This form includes provisions that allow the lender to demand immediate repayment of the loan if the borrower defaults. The inclusion of confessed judgment provisions means that if the borrower fails to meet their obligations, the lender can obtain a judgment against them without a court trial, making this form distinct from standard promissory notes.
When this form is needed
This form is typically used when an individual or entity needs to borrow money and wants to provide the lender with a clear, enforceable promise to repay. It is suitable for personal loans, business financing, or any situation where formal documentation is necessary to secure a loan. It can be particularly useful when the lender wants to ensure they have a quick legal recourse in case the borrower defaults.
Who should use this form
- Individuals borrowing money from friends or family.
- Business owners seeking financing from lenders or investors.
- Loan officers and financial institutions facilitating loans.
- Attorneys drafting loan agreements for clients.
Completing this form step by step
- Identify and enter the names and addresses of the borrower and lender.
- Specify the loan amount and interest rate.
- Detail the repayment terms, including payment frequency and due dates.
- Include a designated address for where payments should be sent.
- Both parties should sign and date the document to validate the agreement.
Does this document require notarization?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
Avoid these common issues
- Failing to include the full names and addresses of the borrower and lender.
- Not specifying the interest rate, which can lead to confusion or disputes.
- Omitting the repayment schedule or payment terms.
- Neglecting to sign the document, making it unenforceable.
Benefits of completing this form online
- Convenient access to templates that can be customized quickly.
- Editability allows users to incorporate specific details easily.
- Reliability in obtaining a legally binding agreement drafted to meet common standards.
- Immediate download means you can print and use the form as soon as it is completed.
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FAQ
A confession of judgment is a written agreement, signed by the defendant, that accepts the liability and amount of damages that was agreed on. A confession of judgment is a way to circumvent normal court proceedings and avoid a lengthy legal process to resolve a dispute.
A provision that may be included in notes, leases, and contracts by which the debtor, lessee, or obligor authorizes any attorney to go into court to confess a judgment against him or her for a default in payment.
The three-year shelf-life of affidavits of confession of judgment is sometimes overlooked by practitioners and is important to bear in mind.
It can only be filed if your funder is unable to collect on your debt. If there's never a need to take collection action against you, a confession of judgment is simply an innocuous piece of paper. All that said, you should avoid signing one if you can possibly help it it's not worth risking your business' future.
United StatesConfessions of judgment are permitted in many states. New Jersey and Pennsylvania permit them, among others. Some states, including Michigan, require they be specially labelled or have other procedural requirements.
A confessed judgment clause allows a creditor's attorney to file an affidavit with the lawsuit and effectively confess, on behalf of the debtor, that the judgment is owed.Confessed Judgments are governed by Maryland Rules 2-611 (in Circuit Court) and 3-611 (in District Court).
United StatesConfessions of judgment are permitted in many states. New Jersey and Pennsylvania permit them, among others. Some states, including Michigan, require they be specially labelled or have other procedural requirements.
In Maryland, a judgment is only valid for 12 years. If you have not been able to collect your judgment within that time, you will have to renew the judgment to continue your collection efforts.
