This form is a Promissory Note with Confessed Judgment Provisions. The maker of the note promises to repay a loan received from the lender, with interest. The form provides that if the maker defaults upon the loan, the lender may exercise the option of demanding the immediate payment of the entire loan.
If the borrower defaults, the lender can file the note in court, and the court can enter judgment more swiftly than in regular cases.
Generally, it’s tough to challenge a confessed judgment since you’ve already agreed upfront, but there might be some narrow paths to explore.
Think carefully! Understand your ability to repay and the implications if things go south, since you might be waiving some legal rights.
Yes, they pop up often, especially in business transactions or loans, where quick enforcement is key.
People use it because it adds extra security for lenders. If the borrower falls short, the lender can jump right to court without the usual legal hurdles.