Promissory Note Forms


U.S.Legal Forms, Inc., offers Promissory Note forms for all States. Unsecured, secured and special matter notes. State Specific Notes. Notes with interest, without interest, payable on demand, in installments and lump sum.

A promissory note is a written promise to pay a debt. An unconditional promise to pay on demand or at a fixed or determined future time a particular sum of money to or to the order of a specified person or to the bearer.


Promissory Notes by State

Promissory Note - Lend or Borrow Money Wisely

Promissory note forms are essential evidence of an agreement for loan when lending money of a significant amount. Promissory notes are often used in the case of a personal loan. In the event of default on promissory notes, the terms for late payment and default in the note will apply. If necessary, a promissory note for loan can be used as evidence in court to collect a debt. A cognovit clause can allow a judgment for the lender automatically. Without a sample promissory note, a loan may become a swearing contest between the borrower and lender.

Promissory notes are usually considered negotiable instruments under UCC rules. The terms promissory note, note payable, and loan agreement are often used interchangeably. While a promissory note is technically only a promise to pay a loan, a template of promissory note often contains loan terms such as the interest rate, maturity date, amount of loan, and payment terms.

A promissory note form template can take various forms. Below, we will describe some popular promissory note template types:

Master promissory note - a master promissory note (MPN) is used in government student loans. The MPN is a promissory note that can be used to make one or more loans for up to ten academic years.

Demand note - rather than having a maturity date, this promissory note sample can be called due at any time by the lender. Notes payable on demand can be enforced even if no payment date is stated.

Balloon promissory note - a balloon note is evidence of an agreement for loan that calls for a series of small payments at first, followed by a large payment toward the end of the loan term.

Cognovit note - a cognovit note means that the debtor waives any defenses in the event of a default on the loan. In other words, if the borrower gets behind in payment, the note holder can go to court and automatically get a judgment against the debtor.

Secured promissory note - this indicates a loan backed by a secured interest in an asset that can be foreclosed on if there's a default on the loan.

Installment note - this is an instrument that calls for a series of payment at regular intervals.

Unsecured promissory note - an unsecured note means there is no property pledged as security for the loan, that could be taken and sold in the event of default.

Installment note - this promissory note is a repayment over a course of time in equal amounts at regular intervals.

Top Questions about Promissory Note Forms

  • What makes a promissory note legally binding?

    A promissory note becomes legally binding when it includes essential elements such as the borrower's acknowledgment of the debt, clear repayment terms, and signatures from both the borrower and the lender. It must also comply with the laws applicable in your state. By utilizing trusted promissory note forms, you can create a document that meets these requirements and provides legal protection.

  • Does Microsoft Word have a promissory note template?

    Yes, Microsoft Word offers a variety of templates, including promissory note forms. You can easily access these templates when creating a new document. This allows you to customize the note according to your requirements while ensuring that you have a structure to follow. Additionally, using a template can save you time and provide a professional appearance.

  • Do you need a lawyer to write a promissory note?

    You do not necessarily need a lawyer to write a promissory note. Many individuals create their own promissory note forms using templates available online. However, consulting a lawyer can help ensure that the document complies with state laws and meets your specific needs. It can also address any unique circumstances you may want to include.

  • How do I report a promissory note on my taxes?

    You report a promissory note on your taxes by declaring any interest income on your annual tax return. Make sure to maintain proper records of all transactions related to the note, as the IRS may require this information for verification. Using Promissory Note Forms helps you keep your documents organized and ready for tax season.

  • How to report a promissory note on tax return?

    When reporting a promissory note on your tax return, you need to include the interest income received from the note. Provide accurate details about the payments made and any principal collected. By using Promissory Note Forms from US Legal Forms, you can have a well-structured document that makes tracking this information much easier come tax time.

  • Where do you file a promissory note?

    Typically, you file a promissory note with the county recorder's office in the jurisdiction where the property is located or where the borrower resides. This filing helps create a public record, which can be crucial in the event of a dispute. Utilizing Promissory Note Forms from US Legal Forms can help ensure your document meets all necessary requirements for filing.

  • Does a promissory note need to be recorded?

    Recording a promissory note is not legally required. However, doing so can provide extra protection for the lender while establishing a public record of the debt. If you use Promissory Note Forms from US Legal Forms, you can simplify the process of creating a legally valid document that you can decide to record based on your situation.

  • How do you write a simple promissory note?

    Writing a simple promissory note requires clarity and precision. Start with the title, write the parties’ names, and state the amount being borrowed. Our Promissory Note Forms offer easy-to-follow templates that simplify this process, allowing you to create a clear and effective agreement without unnecessary complexity.

  • How to fill the promissory note?

    Filling out a promissory note involves several simple steps. Begin by listing the borrowers and lenders, followed by the principal amount and the terms of repayment. Our Promissory Note Forms are designed to help you through this process, ensuring you include essential components like dates and signatures for legal enforceability.

  • Do I need to get a promissory note notarized?

    Notarization is not always required for a promissory note, but it is highly recommended. A notarized document helps prevent disputes by providing proof that both parties agree to the terms. Using Promissory Note Forms can facilitate this process, allowing you to include notarization options easily.