Promissory Note Forms - Function Of Promise Note
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 Sample Promissory Note Template
Promissory Note - Lend or Borrow Money Wisely Money Promissory Note Sample
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.