Easy Questions  
Free Legal Documents

A Guide to Promissory Notes in Charlestown, IN

A Guide to Promissory Notes in Charlestown, IN


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 IN 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 IN 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 Charlestown, IN
Stephen Murphy Law
2207 E Morgan Ave Ste A
Evansville, IN 47711
(812) 266-9483
Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  General Practice Attor
Sprunger Rick L
1540 Shady Oak Dr
Berne, IN 46711
(260) 589-8902
Attorneys, Legal Service Plans
Amber Douglas G
1194 Joliet St
Dyer, IN 46311
(219) 865-8470
Attorneys
Amber Golding Hofstetter
1194 Joliet St
Dyer, IN 46311
(219) 865-8470
Attorneys, General Practice Attorneys
Fesko Tim
425 Joliet St # 217B
Dyer, IN 46311
(219) 227-8387
General Practice Attorneys, Attorneys, Legal Service Plans
Manning & Gonzalez, P.C.
200 Monticello Dr
Dyer, IN 46311
(219) 865-8376
Debt Adjusters,  Business Law Attorneys,  Attorneys,  Juvenile Law Attorneys,  Wills, Trusts & Esta
Kurt Schnepper
3820 Oak Hill Rd
Evansville, IN 47711
(812) 437-8365
Attorneys, Criminal Law Attorneys
Long Douglas R
403 Historical West 8th St
Anderson, IN 46011
(765) 644-8337
DUI & DWI Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
Miller Robert W
709 Winding Way
Anderson, IN 46011
(765) 642-8301
Attorneys
Stanley Pagorek
425 Joliet St
Dyer, IN 46311
(219) 864-8300
General Practice Attorneys, Attorneys
Pyle Carla K.
275 Joliet St # 330
Dyer, IN 46311
(219) 322-8222
Attorneys, Legal Service Plans
Rubino, Ruman, Crosmer & Polen
275 Joliet St
Dyer, IN 46311
(219) 322-8222
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Sersic Steven J
275 Joliet St # 330
Dyer, IN 46311
(219) 322-8222
Attorneys, Legal Service Plans
Crosmer Andrew A
275 Joliet St # 330
Dyer, IN 46311
(219) 322-8222
Attorneys, Legal Service Plans
Foster O'Daniel Hambidge & Lynch
3820 Oak Hill Rd
Evansville, IN 47711
(812) 424-8101
DUI & DWI Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys
Montgomery Clarel
466 US Highway 27 S
Berne, IN 46711
(260) 589-8090
General Practice Attorneys
Taylor Samuel D
3776 W 500 N
Anderson, IN 46011
(765) 642-7194
Attorneys
Demange Julie A
1160 Joliet St # 201
Dyer, IN 46311
(219) 865-6262
Attorneys, Legal Service Plans
Stassin Larry D
1160 Joliet St # 201
Dyer, IN 46311
(219) 865-6262
Attorneys
Layer Tanzillo Stassin & Babcock PC
1160 Joliet St
Dyer, IN 46311
(219) 865-6262
Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Attorneys,  DUI & DWI Attorne
Total Attorneys - DUI
274038 State Road 250
Bennington, IN 47011
(812) 200-5236
Attorneys, Legal Service Plans
Wiesneth Law Office
125 N Weinbach Ave
Evansville, IN 47711
(812) 297-5036
Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Law
Carter Yvonne
3820 Oak Hill Rd
Evansville, IN 47711
(812) 401-4968
Traffic Law Attorneys, Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
Ivancevich George S
1546 Joliet St
Dyer, IN 46311
(219) 865-4556
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US