Promissory Note

Promissory Note

A Promissory note is a legal instrument of finance where a first party known as the “payer” makes a commitment in the form of a written legal document to make a payment to a second party known as the “payee.” The note can be payed in the form of a fixed time declared by nature or at the demand of the second party. The payment over time may be set under an interest of a certain amount per annum. All the specifications of this note shall be determined under a certain set of terms and conditions that are agreed upon. Whenever this Promissory Note is easily fit to be sold and does not have any conditions, then it is also considered to be a negotiable instrument (A document guaranteeing the payment of a specific amount of money within a certain amount of time with the payer’s name written on the document.)

It is also considered to be a note payable in accountancy. A bank note may be an example and is mostly seen as a promissory note. It is a note that may be cashed in by the bearer at anytime usually at his/her demand. The note is important as it is the mode of payment of the buyer to the seller.

A Promissory note is made fully knowing that a payment has to be made at a future date set within the agreement and is subject to a terms and conditions of payment.

Promissory Note

__________________, 20_____ _____________, ____________
$_______. ____

_______________________, referred to herein as “MAKER”, agrees to pay to the Order of _______________________, referred to herein as “HOLDER”, or order, the sum of $____, (______________________________&___/100 Dollars), at __________________, _______________, _____________, with interest thereon at rate of ___% per annum, simple interest.

Said note shall be in due, unless earlier accelerated, in ______ installments, payable every _______, in the amount of $_____. 00 (____________________&__/100 Dollars). All payments received shall be credited first to interest and then to principal. Should MAKER fail to pay any installment when due, then HOLDER shall have the option to accelerate the payment of the full principal sum and accrued interest payable. HOLDER shall have the right for commercially reasonable causes, including but not limited to, the institution of litigation, the filing of tax liens, or any other objective sign of incapacity of the MAKER to pay the principal or interest due, to accelerate the payment of the full principal sum and accrued interest payable.

This note is payable in U.S. Dollars. At any time the maximum rate of interest applicable to this transaction shall not exceed the legal maximum rate of interest for a note of this type. Any sums paid in excess of any lawful limitation shall be applied to principal.

After default herein, this note will bear interest at the highest legal rate for this type of note until paid in full. Upon any default, MAKER agrees to pay a reasonable attorney’s fee for any and all services of an attorney, whether in or out of court, and for appeal and post-judgment collection legal services.
Dated:

____________________________________________
MAKER

PERSONAL GUARANTEE

The undersigned, in consideration of the extension of credit by HOLDER to MAKER, unconditionally personally guarantee the full and prompt payment of principal, interest, and any collection costs, including attorney’s fees to HOLDER. The undersigned consent to any extensions which may be made from time to time between MAKER and HOLDER, and consents to the release or substitution of any collateral.

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READ CAREFULLY: You are executing a legally binding obligation to pay this debt should the primary maker fail or refuse to do so. This may mean that you might be called on to pay this debt and collection costs.
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__________________________________________
GUARANTOR

__________________________________________
GUARANTOR

Promissory Note
Review List

This review list is provided to inform you about this document in question and assist you in its preparation. This is a straightforward promissory note. Be guided accordingly.

1. Make multiple copies. Give one to each related party.

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