Easy Questions  
Free Legal Documents

A Guide to Promissory Notes in Adger, AL

A Guide to Promissory Notes in Adger, AL


Some people use one half their ingenuity to get into debt, and the other half to avoid paying it.
 
- George Prentice


A promissory note is a financial instrument that contains a written promise by one party to pay another party a specific sum of money either on demand or at a specified future date. A promissory note typically contains all the terms of the debt, such as the amount, interest rate, maturity date, date and place of issuance, and issuer's signature.
Promissory notes are known by other names such as Note Payable Form, Promissory Note Form, and Note.

The borrower may be referred to as the maker, obligor, payor, or the promisor. The borrowed money is called the principal. The lender may be called the payee, oblige, or promise. The note usually includes a specified amount of interest on the unpaid principal amount. The specified time of payment may be: a) whenever there is a demand, b) on a specific date, c) in installments with or without the interest included in each installment, d) installments with a final larger amount (balloon payment).

A promissory note may contain other terms such as the right of the lender to order payment be made to another person, penalties for late payments, a provision for attorney's fees and costs if there is a legal action to collect, the right to collect payment in full if the note is secured by real property and the property is sold ("due on sale" clause), and whether the note is secured by a mortgage or deed of trust or a financing statement (a filed security agreement for personal collateral).

The promissory note is usually held by the party to whom the money is owed. When the amount due on the note, including interest and penalties is paid, the note must be cancelled and surrendered to the person who signed it. A promissory note need only be signed and does not require an acknowledgement before a notary public to be valid.


When to Use a Promissory Note

• Use a promissory note if you want to formalize the agreement to let a person loan or borrow money from you

• If you want to loan money to a business or private party and you want all the terms in writing

• If you wish to prepare an amortization table of the loan that includes interest

• If you want to see and determine the amount of monthly payment for the loan

• If you are assigned to outline the terms of loan of a lender and a borrower

• Make sure to print, sign and save the document after completing

Basics of a Promissory Note

A loan should have a written contract as to avoid misunderstandings about the terms of payments later. Every loan is unique, so it is a great idea to put everything into writing. Writing a promissory note should be tailored to your specifications of that particular loan. Check out a free preview of a promissory note at 1-2-Law.

Payment Options for your Promissory Note:

Structuring payment can have several options:

• Lump Sum. This means that the borrower will return the money borrowed in a full, single payment. A date due will be indicated on the promissory note or it can be noted as "due on demand". This is the most straightforward type of repayment.

• Due on Demand. The lender can demand anytime that the borrower repay him or her. The borrower is given time before a demand is made, and if agreed by both parties, the borrower can make initial payments before the demand.

• With Interest. A monthly interest rate can be included on the promissory note. The payment will be applied on the interest due first and the principal after. If payment is not made, the lender can have the option to increase the interest rate moving forward.

Collecting on your Promissory Note

Having a promissory note is not a guarantee that the borrower will readily pay you back in a timely manner. If you have difficulties in being paid by the borrower, consider the following:

• Be polite. Sometimes life gets in the way and loan payments are not on time. Some unforeseen circumstances may have befallen the borrower. Generally, borrowers do not want to feel beholden and they are motivated to repay their loans. Asking nicely for repayment and being understanding about unforeseen circumstances may make the borrower more inclined to pay in full. Being polite can pay off in the end

• Ask for payment in writing. If being nice does not yield results, consider the more direct approach of sending a past due notice. This will get their attention and show the borrower that you are serious about collections. As the lender, make sure you have the copies of these notices as they can be useful if your loan ends up in court

• Use a Debt Settlement Agreement. This is done to restructure the payment scheme if the borrower cannot pay the loan. Rather than write off the entire loan as a loss or incur legal fees, the borrower is given the chance to make good on the money borrowed by changing the amount owe or the amount of time the borrower has to pay the lender.

• Call a debt collector. As a last resort, you can call a professional to collect on the payments. Debt collecting agencies will buy your debt at a discount and then use aggressive tactics to collect what they can.

 
Edit, Download, & Print a Free
Alabama Last Will
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Edit, Download, & Print a Free
Alabama Living Will
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
 
Edit, Download, & Print a Free
Alabama Power of Attorney
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Adger, AL
Wilson Jr James E
732 Carter Hill Rd
Montgomery, AL 36106
(334) 834-9899
Attorneys, Legal Service Plans
Total Attorneys - DUI
PO Box 273984
Billingsley, AL 36006
(334) 259-9549
Attorneys, Legal Service Plans
Halstrom, Timothy
4170 Lomac St
Montgomery, AL 36106
(334) 272-9524
General Practice Attorneys, Attorneys
Dwayne L Brown
4150 Carmichael Rd Ste A
Montgomery, AL 36106
(334) 285-9444
Attorneys, General Practice Attorneys, Legal Service Plans
Padula Law Firm PC
119 Church St
Rainbow City, AL 35906
(256) 442-9100
General Practice Attorneys, Attorneys, Legal Service Plans
The McAdory Firm, LLC
200 88th Street South
Birmingham, AL 35206
(205) 370-9094
Bankruptcy Law Attorneys,  Estate Planning Attorneys,  Civil Litigation & Trial Law Attorneys,  Divo
Roebuck M Lloyd
1810 Old Government St
Mobile, AL 36606
(251) 479-9010
Attorneys, General Practice Attorneys, Legal Service Plans
Hollifield Charles P
3225 Lexington Rd
Montgomery, AL 36106
(334) 263-9010
Attorneys, Legal Service Plans
Thiry & Caddell
1911 Government St
Mobile, AL 36606
(251) 478-8880
Legal Service Plans,  Accident & Property Damage Attorneys,  Bankruptcy Law Attorneys,  Corporation
Jack "Trip" Smalley
2607 Dauphin Street, Suite C
Mobile, AL 36606
(251) 610-8744
Family Law Attorneys,  Divorce Attorneys,  Commercial Law Attorneys,  Personal Injury Law Attorneys,
Robert M Harrington JR
4612 Fox Den Ln
Montgomery, AL 36106
(334) 272-8603
General Practice Attorneys
Howard Rick A
4001 Carmichael Rd Suite 300
Montgomery, AL 36106
(334) 215-8585
Attorneys,  Labor & Employment Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Discriminati
Howard Rick A
4001 Carmichael Rd Ste 300
Montgomery, AL 36106
(334) 215-8585
Attorneys, Civil Litigation & Trial Law Attorneys, Insurance Attorneys, Product Liability Law Attorn
Betts Laura
4001 Carmichael Rd Ste 300
Montgomery, AL 36106
(334) 215-8585
Attorneys, General Practice Attorneys
Darneille Jason D
4001 Carmichael Rd Ste 300
Montgomery, AL 36106
(334) 215-8585
Attorneys, Legal Service Plans
Goldfinger Roy S PC
4472 White Acres Rd
Montgomery, AL 36106
(334) 395-8500
General Practice Attorneys, Attorneys, Legal Service Plans
Pappanastos John N
4131 Carmichael Rd Ste 2
Montgomery, AL 36106
(334) 264-8500
General Practice Attorneys, Attorneys
Waldrop And Associates PC
6700 Odyssey Dr NW Ste 105
Huntsville, AL 35806
(256) 539-8343
Family Law Attorneys, Tax Attorneys, Attorneys
McTighe James H
4750 Woodmere Blvd
Montgomery, AL 36106
(334) 356-8337
Attorneys
Grainger Legal Services LLC
4220 Carmichael Ct N
Montgomery, AL 36106
(334) 523-8101
Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Family Law Attorneys,  Probate Law Att
Abell William K
4171 Lomac St # D
Montgomery, AL 36106
(334) 271-8008
Attorneys, Family Law Attorneys, Social Security & Disability Law Attorneys, Corporation & Partnersh
Harrison Gammons & Rawlinson PC
2430 L & N Dr SW
Huntsville, AL 35806
(256) 533-7711
Real Estate Attorneys,  Attorneys,  Title Companies,  Insurance
McLeod Vonda S. LLC
4131 Carmichael Rd
Montgomery, AL 36106
(334) 245-7711
Personal Injury Law Attorneys, Attorneys, Social Security & Disability Law Attorneys
Blevins Jerry M Attorney
2800 Zelda Rd # 200-3
Montgomery, AL 36106
(334) 262-7600
Criminal Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US