subject: Format Of A Promissory Note [print this page] Format Of A Promissory Note Format Of A Promissory Note
A Promissory is an agreement between a borrower and the money lender regarding the return of the payment on a fixed time, as mentioned in this note. Such a form has the following format:
A promissory note consists of detailed columns in the beginning, which is meant for the names of the money lender and the borrower.
Some provisions would be stated to select from before continuing. These provisions are:
- Terms of the repayment-this will describe the terms of repayment by the borrower.
- Terms of periodic payment-It begins on the date' and continues till the principal balance' of the note. These are the dates on which the borrower is entitled to pay the lender every month.
- Payable on demand- In case of an inability to pay on the due date, the borrower has to pay on whatever date the lender asks him to.
- Late fees can be made applicable upon a borrower by the lender.
The next column comprises of designated location'. This requires to be filled in by the note holder, mentioning the place where he wishes to receive his payments back.
Next column is of the prepayment if any. The Promissory note may be prepaid either in parts, or completely, without any penalty.
Default forms the subject for next column. In this, the borrower is liable to pay all the attorney fees and every other cost incurred by the lender.
The next section is of joint and several liabilities'. All the borrowers mentioned in this note, are liable for any debts as per the note, jointly.
Another section mentions that there must not be any modifications of any terms till a mutual agreement is presented by both the parties.
There are several columns which demand details of the loan taken, the loan period, and the contact details of the two parties.
Finally, the form requires signatures of the lender, the borrower and the witness respectively.
