Easy Questions  
Free Legal Documents

A Guide to Promissory Notes in Alsea, OR

A Guide to Promissory Notes in Alsea, OR


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.

 
Personalize & Print a Free OR Last Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free OR Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Alsea, OR
Gillingham John W
121 NE 75th Ave
Hillsboro, OR 97124
(503) 693-9966
Attorneys
Souther Calvin N Jr
15350 SW Sequoia Pkwy
Portland, OR 97224
(503) 624-9894
Attorneys, Legal Service Plans
Baxter & Baxter, LLP
5635 NE Elam Young Parkway, Suite 300
Hillsboro, OR 97124
(503) 681-9752
Bankruptcy Law Attorneys, Attorneys
Schantz Laura L
3000 NW Stucki Pl Ste 230
Hillsboro, OR 97124
(503) 466-9626
Family Law Attorneys, Attorneys, Legal Service Plans
Cross Dan Attorney
230 NE 2nd Ave Ste D
Hillsboro, OR 97124
(503) 640-9509
Attorneys, General Practice Attorneys, Legal Service Plans
Corbridge & Kroll
19720 NW Tanasbourne Dr Ste 200
Hillsboro, OR 97124
(503) 352-9360
Attorneys, Legal Service Plans
Strahm Scott An Estate Planning & Elder Law Firm
15405 SW 116th Ave Ste 112
Portland, OR 97224
(503) 639-8800
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service
Mc Neil Ken
1323 NE Orenco Station Pkwy # 310
Hillsboro, OR 97124
(503) 615-8336
Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Legal Service Plans
Garland Barbara J
230 NE 2nd Ave # H
Hillsboro, OR 97124
(503) 615-8233
Attorneys, Legal Service Plans
Gifford Milton E
1481 Gateway Blvd
Cottage Grove, OR 97424
(541) 942-7914
Attorneys, Legal Service Plans
Harris Law Firm
7455 SW Bridgeport Rd # 220
Portland, OR 97224
(503) 746-7859
Attorneys, General Practice Attorneys
Farrell Douglas
3000 NW Stucki Pl # 230
Hillsboro, OR 97124
(503) 645-7788
Attorneys, General Practice Attorneys, Legal Service Plans
Heard Robert A
330 NE Lincoln St Ste 100
Hillsboro, OR 97124
(503) 648-7433
Attorneys, Legal Service Plans
Harris J Michael
220 NE 3rd Ave
Hillsboro, OR 97124
(503) 648-7383
Attorneys
Rini Michele C Atty
220 NE 3rd Ave
Hillsboro, OR 97124
(503) 648-7383
Attorneys
Stanton Shelby C
220 NE 3rd Ave
Hillsboro, OR 97124
(503) 648-7383
Attorneys, Legal Service Plans
Widmer Lindsey R
220 NE 3rd Ave
Hillsboro, OR 97124
(503) 648-7383
Attorneys, Legal Service Plans
Legal Aid Services of Oregon
230 NE 2nd Ave Ste A
Hillsboro, OR 97124
(503) 648-7163
Attorneys, Legal Service Plans
Hertsel Shadian
6650 SW Redwood Ln
Portland, OR 97224
(503) 352-6985
Attorneys, Legal Service Plans
Andrew M. Rich PC
330 NE Lincoln St
Hillsboro, OR 97124
(503) 925-6710
Elder Law Attorneys,  Attorneys,  Estate Planning, Probate, & Living Trusts,  Real Estate Attorney
Naranjo Prosser Law
110 NE 10th Ave
Hillsboro, OR 97124
(503) 640-6700
Attorneys, Legal Service Plans
Daigle James M Atty
139 NE Lincoln St
Hillsboro, OR 97124
(503) 648-6677
Attorneys
Brisbee & Stockton
139 NE Lincoln St
Hillsboro, OR 97124
(503) 648-6677
Attorneys, Insurance Attorneys
Wilkinson Merlin D
161 NW Adams Ave Ste 206
Hillsboro, OR 97124
(503) 693-6641
Family Law Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US