Promissory Note
_____________________________ (“Lender”) and ____________________________
(“Borrower”) hereby enter into this loan agreement this _____ day of _______________, 20___.
1. Amount of Loan. Lender shall loan Borrower the sum of
_____________________________ dollars ($___________).
2. Interest. Interest shall be calculated on the unpaid balance as Simple/Compound (circle
one) interest at the rate of _________________________ percent (_____%).
3. Payment Terms. Payments shall be applied first to interest and then to the unpaid
balance of the loan and shall be made according to the following terms.
a. Monthly Payments. Monthly payments shall be due on the ______ day of each
month.
b. Late Payments. Payment shall be considered late if not paid by the close of
business on the ______ day of the month. A late fee of $_______ shall apply to
all late payments.
c. Term of Contract. Payments shall be due beginning on the ______ day of
______________(month), 20_____ with a final payment due on the _____ day of
_____________ (month), 20_____, for a contract term of _________________
(____) months.
4. Collateral. This loan shall be secured by
________________________________________ (describe the collateral), to which
Lender shall hold title until such time as the loan is paid in full.
5. Loan Acceleration. Should Borrower fail to make any monthly payment before the
following months payment becomes due, he/she shall be in default. Should Borrower be
unable to cure the default within ________ (_____) days, Lender may call the entire
amount of the loan due.
6. Attorney Fees and Court Costs. Should Borrower fail to comply with the terms of this
loan agreement he/she will be responsible for all of Lender’s attorney fees and any Court
costs associated with enforcement of this agreement.
7. General Provisions.
7.1 Governing Law. The parties agree that this agreement shall be governed by the
laws of the state of _____________________________ and that the Courts of the state