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3 Best and Detail Loan Note Samples and Templates

Loan Note Sample: SAMPLE PROMISSORY NOTE

This document is to be used as a guideline only.  HowStuffWorks does not guarantee that this document is suitable, or legally accurate, for all situations, and is not liable for any deficiencies in the document’s content.

 

Borrower Information:

Name:

 

Date:
Street Address:

 

Date of Birth:
City:

 

Area code/Telephone number:
State:

 

Driver’s License Number:
Zip:

 

Social Security Number:

 

Lender Information:

Name:

 

Area code/Telephone number:
Street Address:

 

If paying by check, make check payable to:

Send payments to:

City:

 

State:

 

Zip:

 

 

Loan Information:

Loan Amount: Loan Period:

 

Interest Rate: Payment Schedule:

 

 

 

 

 

1. Promise to Pay. For value received, ____________________  (Borrower) promises to pay ____________________  (Lender) $___________  and interest at the yearly rate of _____% on the unpaid balance as specified below.

2. Installments.

Borrower will pay ______ payments of $_____ each at monthly/yearly/_________ intervals on the _____ day of the month.

Borrower will pay one lump payment on ______________ date.

Borrower will pay ______ payments of $_____ each at monthly/yearly/_________ intervals with a final balloon payment of ____________ at the end of the loan term on _________ date.

3. Application of Payments. Payments will be applied first to interest and then to principal.

4. Prepayment. Borrower may prepay all or any part of the principal without penalty.

5. Loan Acceleration. If Borrower is more than _______ days late in making any payment, Lender may declare that the entire balance of unpaid principal is due immediately, together with the interest that has accrued.

7. Security

This is an unsecured note.

Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by a security agreement and Uniform Commercial Code Financing statement giving Lender a security interest in the equipment, fixtures, inventory and accounts receivable of the business known as ____.

Borrower agrees that until the principal and interest owed under this promissory note are paid in full, this note will be secured by the

mortgage
deed of trust covering the real estate commonly known as _________________
and more fully described as follows:   ___________________________________

8. Collection Costs. If Lender prevails in a lawsuit to collect on this note, Borrower will pay Lender’s costs and lawyer’s fees in an amount the court finds to be reasonable.

The undersigned and all other parties to this note, whether as endorsers, guarantors or sureties, agree to remain fully bound until this note shall be fully paid and waive demand, presentment and protest and all notices hereto and further agree to remain bound notwithstanding any extension, modification, waiver, or other indulgence or discharge or release of any obligor hereunder or exchange, substitution, or release of any collateral granted as security for this note. No modification or indulgence by any holder hereof shall be binding unless in writing; and any indulgence on any one occasion shall not be an indulgence for any other or future occasion. Any modification or change in terms, hereunder granted by any holder hereof, shall be valid and binding upon each of the undersigned, notwithstanding the acknowledgement of any of the undersigned, and each of the undersigned does hereby irrevocably grant to each of the others a power of attorney to enter into any such modification on their behalf. The rights of any holder hereof shall be cumulative and not necessarily successive. This note shall take effect as a sealed instrument and shall be construed, governed and enforced in accordance with the laws of the State of  __________________.

Witnessed:  ________________________  Date: ______________

Witnessed:  ________________________  Date: ______________

Borrower:  ________________________  Date: ______________

Borrower:  ________________________  Date: ______________

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Sample Loan Note Sample

This note is to confirm that I, __________, (hereinafter referred to as Lender) hereby loan the principal sum of _____ Dollars ($ . ) to ____________ ) hereinafter referred to as Borrower).

This Note bears interest at the rate of _____ Percent ( %), per annum. Monthly payments of principal and interest on this Note in the Amount of _________ Dollars ($ . ) per month, are due and payable on the ____ day of each and every month beginning with the month of _______, ____.

The principal sum of the Note shall be secured by _________ as collateral. Upon final repayment of the principal and interest due, Lender agrees to release said collateral from any liens or obligations in connection with this Note.

In the event Borrower defaults on repayment on this loan, or payment is more than 60 days late, Lender reserves the right to demand payment in full. Should Borrower be unable to make said repayment, Lender shall be entitled to claim the collateral property as payment, plus any collection and legal fees and expenses involved in reclaiming said principal amount.

The undersigned parties agree to the terms and conditions presented in this letter. Borrower acknowledges receipt of the said principal sum stated above. Lender acknowledges receipt of this document as a legally binding Note.

The parties enter into this Note and accept this Note as legally binding as of the date stated below.

____________________
(Borrower)

____________________
(Lender)

Date: __________

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Promissory Note Example

Date: 26th May, 2010
Principal Amount: US$ 5,60,000

For value I received, I Marcus Phil (name of borrower) the undersigned promises to Paul Mackenzie (name of lender) the sum of US$ 5,60,000 in consecutive, monthly payments of US$ 5000 (monthly installment) commencing on this date of 26th May, 2010, (mention the date) and thereafter on same day of each and every subsequent month until fully paid. In the event the borrower defaults in any payment beyond 25 days from the agreed date of payment, a late penalty charge of US$ 20 per month per day will be assessed until all the amount is paid back. This will include the interest, late charges and applicable fees. The papers regarding the legal matters concerning all transactions will be send the address as mentioned in the loan form. The borrower must inform the lender in any case of address change. This note may be prepaid by the borrower at any time in whole or parts without premium or penalty.

Borrower agrees to pay all the cost of collection, legal expenses and lawyer fees, incurred or paid by the lender in collection and enforcement of this note.

Borrower’s Signature
Name: Marcus Phil
Address: (Give complete Address)
Driver License Number: 848855
Social Security Number: 474848

In witness whereof, I set my hands under seal this 26th day of May 2010 and I acknowledge receipt of a completed copy of this instrument.

Notice/Seal of Authority

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