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."
Utah Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment of Note In the state of Utah, when a borrower wishes to pay off a promissory note before its due date or in response to an acceleration request, they may need to provide a letter tendering full payment to the lender. This letter serves as a formal communication, acknowledging the outstanding balance, providing necessary details, and expressing the borrower's intention to settle the debt completely. Keywords: Utah, letter, tendering full payment, existing balance, promissory note, acceleration, prepayment. Types of Utah Letters Tendering Full Payment: 1. Utah Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration: In cases where the lender has invoked the acceleration clause of the promissory note, which allows them to demand immediate full repayment, the borrower responds with a letter tendering the full outstanding balance. This letter specifies the reason for acceleration and assures the lender that the complete payment will be made promptly. 2. Utah Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Prepayment: If it is the borrower's intention to pay off the promissory note before its due date voluntarily, they will draft a letter tendering full payment due to prepayment. This letter outlines the reasons for the early repayment, such as financial stability or avoiding additional interest costs, and confirms the borrower's commitment to clearing the entire debt. Content for Utah Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment: [Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date] [Recipient's Name] [Recipient's Title/Position] [Lender's Organization Name] [Address] [City, State, ZIP Code] Subject: Letter Tendering Full Payment of Existing Balance of Promissory Note Dear [Recipient's Name], I hope this letter finds you in good health and spirits. I am writing to tender full payment of the existing balance of my promissory note, [Promissory Note Number], as per the acceleration request/prepayment circumstances. I understand that the acceleration clause/prepayment option in the promissory note [additional details if applicable] has been invoked, and I acknowledge my obligation to repay the total outstanding balance. It is my desire to settle this debt promptly and clear any financial obligations associated with the promissory note. To fulfill my responsibility, I am enclosing payment in the amount of $[Total Amount of Full Payment] as the outstanding balance due. This amount includes all principal, interest, and any applicable fees or charges associated with the note up until [Due Date/Prepayment Date]. Please acknowledge receipt of this full payment at your earliest convenience. Additionally, kindly provide me with a written document confirming the full satisfaction of the promissory note and release of any liens or claims against the collateral, if applicable. I would like to express my gratitude for the opportunity to work with you during this loan term, and I am appreciative of your prompt attention to this matter. Should you require any further documentation or information, please do not hesitate to contact me at the provided details above. Thank you for your cooperation, and I look forward to receiving confirmation of the closure of this account. Sincerely, [Your Name] Note: This content is provided for informational purposes only and should be adapted to fit your specific situation and comply with Utah state laws. Always consult with an attorney or legal professional to ensure the accuracy and validity of your correspondence.
