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."
Title: Virginia Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment of Note Keywords: Virginia law, promissory note, full payment, acceleration, prepayment, existing balance, legal document, lender, borrower Introduction: In accordance with Virginia law, this detailed description will outline the proper format and content of a Virginia Letter Tendering Full Payment of Existing Balance of Promissory Note. This letter is specifically written when a borrower desires to accelerate or prepay the outstanding loan amount in full and provides instructions to the lender on how to proceed. I. Types of Virginia Letters Tendering Full Payment: 1. Virginia Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration: This type of letter is utilized when the borrower wishes to pay off the entire balance of the promissory note prior to the agreed-upon maturity date due to an acceleration provision. The acceleration provision allows the lender to demand immediate repayment if certain conditions are met, such as a default in payment. 2. Virginia Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Prepayment: This type of letter is employed when the borrower decides to pay off the outstanding loan balance before the agreed-upon maturity date voluntarily. The borrower may opt for prepayment to save on interest expenses or for other reasons. II. Content of Virginia Letter Tendering Full Payment: 1. Sender Information: — Legal name and address of the borrower. — Contact details (phone number, email) for future correspondence. 2. Date: — The date on which the letter is being written. 3. Recipient Information: — Legal name and address of the lender— - Contact details of the lender. 4. Subject Line: — "Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration" or "Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Prepayment." 5. Salutation: — Proper formal salutation addressing the lender (e.g., Dear Mr./Ms./Dr. [Last Name]). 6. Introduction: — Clarification that the purpose of the letter is to tender full payment of the existing balance of the promissory note. — Confirmation of the desire to accelerate or prepay the loan. 7. Loan Information: — Provide the promissory note's details such as the loan amount, original maturity date, interest rate, and any applicable acceleration or prepayment clauses. 8. Payment Details: — Specify the total amount being tendered for full payment, including any accrued interest or penalties. — Instructions regarding the preferred payment method (e.g., certified check, wire transfer). — Request for the lender to confirm receipt of payment and provide instructions for the release of any associated security interests or liens. 9. Conclusion: — Express gratitude for the lender's services throughout the loan term. — Request for a written acknowledgment of the loan's full satisfaction. 10. Closing: — Formal closing (e.g., Sincerely, Respectfully). 11. Signature: — Handwritten or digital signature of the borrower. 12. Enclosures: — Mention any additional documents being enclosed, such as supporting financial statements or copies of the promissory note agreement. Conclusion: When drafting a Virginia Letter Tendering Full Payment of Existing Balance of Promissory Note, it is vital to adhere to the relevant legal requirements and include all necessary components. By providing the lender with a comprehensive and detailed letter, the borrower ensures a smooth transaction and successful closure of the loan.
