A Promissory Note is a written promise to pay money to someone. Its primary function is to serve as written evidence of the amount of a debt and the terms under which it will be repaid, including the rate of interest (if any). Promissory notes may also be referred to as loan agreements, IOUs, or payment arrangements. The note serves as a legal document that is enforceable in court creating an obligation for the borrower to repay the loan.Use this Promissory Note template to lend or borrow money. Promissory notes are used for mortgages, student loans, car loans, business loans, and personal loans between family and friends.
How to Use this Document
This Note sets out all of the terms and details of the loan, including the names and addresses of the borrower and lender, the amount of money being borrowed, how often payments will be made, the amount of the payments, and the signatures of the parties.
You can choose from several types of loans accessible within this form.
You can also specify whether or not interest will accrue on the loan and, if so, the interest rate that will be used. You also have the option of including provisions to govern early payments as well as an acceleration clause that would cause the entirety of the loan to come due in the event of late payments or non-payment according to the agreed upon payment plan schedule.
If the lender and the borrower decide to change the terms of the promissory note, use an Agreement to Modify Promissory Note form. Once the loan has been full repaid, complete a Release of Promissory Note form.
Promissory Notes are governed by Article III of the Uniform Commercial Code (the "UCC").
There are a number of essential elements that must be present in order for your Promissory Note to be enforceable in a court of law.
How to modify the template
You fill out a form. The document is created before your eyes as you respond to the questions.
At the end, you receive it in Word and PDF formats. You can modify it and reuse it.
Start by clicking on "Fill out the template"
Answer a few questions and your document is created automatically.
Your document is ready! You will receive it in Word and PDF formats. You will be able to modify it.