Addendum to Promissory Note
Definition and meaning
An Addendum to Promissory Note is a legal document that modifies the terms of an existing promissory note. This addendum is typically used to make adjustments to interest rates, payment terms, or other significant details that may have changed since the original note was executed. It serves as a formal record of these changes to ensure all parties are aware and in agreement.
Key components of the form
The Addendum to Promissory Note includes several critical elements that should be clearly detailed:
- Parties involved: Identification of the borrower and lender.
- Original promissory note details: Date and amount of the initial note.
- Amendments: Specific changes being made to the original terms.
- Effective date: When the changes will take effect.
- Signatures: Must be signed by both parties to enforce the changes.
How to complete a form
Completing the Addendum to Promissory Note involves the following steps:
- Begin by entering the date on which the addendum is being drafted.
- Clearly state the names and roles (borrower and lender) of the parties involved.
- Reference the original promissory note by including its date and amount.
- Detail the specific changes being made to the note, including any adjustments to interest rates or payment schedules.
- Specify the effective date for these changes.
- Ensure both parties sign and date the form.
Who should use this form
The Addendum to Promissory Note is suitable for anyone who has an existing promissory note and wishes to make alterations to its terms. This includes individual borrowers, business entities, and financial institutions that have lent money under a promissory note. It is particularly beneficial when the financial situation of either party has changed, necessitating a revision of the original agreement.
