12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Frequency Asked Questions About Promissory Notes in Zip Code 92369

Frequency Asked Questions About Promissory Notes in Zip Code 92369


Promises make debt, and debt makes promises.
 
- Dutch Proverb


A promissory note is used to record the financial details of personal loans, business loans, and real estate transactions. It is a legally binding contract which can be used in a court of law if the borrower defaults on the loan.

Personal promissory notes are the most common form of note payable and can be used when lending or borrowing money from friends or family, or to document the intended purchase of personal belongings such as jewelry, appliances, or vehicles. Depending on the amount of the loan, the lender may also request some sort of collateral to back the note.

When drafting the note it should clearly state how much the loan is for, the amount of interest being charged, and the dates which payments should be made. Most states have laws regarding the amount of interest lenders can charge.

When borrowing money from a bank or lending institution, a promissory note is almost always required. If the borrower defaults on the loan the lender has the right to demand full payment of the note. If the lender is unable to collect on the note they can place a lien against real property owned by the borrower or have their wages garnished. If this occurs, it will have a negative impact on the borrower's credit report.

Promissory notes that are considered "unsecured". This means that if the borrower defaults on the loan it is more difficult for the lender to collect. Although lenders can file a lien against the property and take legal action against the borrower, collection can be a lengthy and expensive process with no guarantee for repayment.


Why use a promissory note? Even though a lender trusts the borrower in good faith that he will be repaid, it is always good practice to get it in writing. Oral agreements can be misinterpreted or misremembered. Promissory notes are clear about the interest rates, due dates, late payment penalties, and other possible terms. A promissory note is also solid evidence that a loan has taken place, in case there is a dispute.

Types of Promissory Notes

Promissory notes come in a variety of types which may include:

• Balloon note. A promissory note that requires smaller payments early in the term of the loan and a large payment at the end of the loan term.

• Demand note. This type of promissory note has no fixed timetable for the payment of loan. It requires full payment of the loan upon demand by the lending party.

• Secured or unsecured promissory note. A secured note includes collateral which may be claimed by the lender upon non-payment. One of the classic examples is the mortgage loan where the home is provided as collateral is provided in case the loan is not paid.

• Master promissory note. Refers to the series of loans that can be made using this type of promissory note over an extended period of time.

Some people may feel offended when asked for a written promissory note. It is however, important to have a written agreement when dealing with personal loans because the relationship can be damaged when disagreements arise. Business loans on the other hand, can be easier to get in writing because it is less personal.


FAQ's on Promissory Note

• What is a promissory note?

A promissory note is evidence of a loan agreement that contains the terms of the agreement for the loan. This note also contains the promise to pay the loan on the agreed date. This promissory note or note payable can be used for a personal loan or commercial transactions.

• Who must sign the promissory note?

A loan agreement is signed by both parties but only the borrowing party needs to sign a promissory note. A witness need not sign but the note can be notarized as evidence that the borrower did sign the document.

• What is a secured promissory note?

Collateral, such as an interest in the borrower's property, is included in the promissory note. In case of a default in payment, the property can be sold to pay the lender.

• What is balloon promissory note?

This is a type of installment note where a series of smaller installment payments are made and a large payment is required towards the end of the loan.

• What is the maximum interest rate I can charge the borrower in a promissory note?

Usury laws dictate the maximum interest rates that can be charged by the lender to the borrower. This varies by state and local laws on interest rates should be checked.

• What can I do if there is a default on the note payable by the borrower?

You may choose to sue the borrower in small claims court. Promissory notes can be used as evidence of the loan default that can be use in a lawsuit related to breach of contract. A cognovits note provision can be included in which the borrower waives any defenses that could be raised by the lender.

• What is a master promissory note?

A master promissory consolidates multiple loans. An example of a master promissory note is a student loan where one can make multiple loans covering the time frame specified in the promissory note outline.
 
Personalize & Print a Free CA Last Will Create 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 CA Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Articles:
Related Legal Services near Zip Code 92369
Bustillos Michael Luis
225 N Las Posas Rd
San Marcos, CA 92069
(760) 439-9800
Attorneys
Linde Law Firm
9000 W Sunset Blvd Ste 1025
West Hollywood, CA 90069
(310) 203-9333
General Practice Attorneys, Attorneys, Legal Service Plans
Apex Lien Service
5660 Skyway
Paradise, CA 95969
(530) 876-8300
Collection Law Attorneys
Keith E Cooper Esq
8721 Santa Monica Blvd #706
West Hollywood, CA 90069
(323) 786-8061
Entertainment & Sports Law Attorneys, Corporation & Partnership Law Attorneys, Real Estate Attorneys
David P Rudich David P Rudich Law Offices
9255 W Sunset Blvd Ste 803
West Hollywood, CA 90069
(310) 550-8020
General Practice Attorneys, Attorneys
Total Attorneys - Divorce
PO Box 273879
West Hollywood, CA 90069
(424) 238-7721
Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans
Skay Jacqueline M
100 E San Marcos Blvd
San Marcos, CA 92069
(760) 745-7576
Attorneys,  Estate Planning, Probate, & Living Trusts,  Financial Services,  Wills, Trusts & Esta
Duran Loquvam & Robertson
9000 W Sunset Blvd
West Hollywood, CA 90069
(310) 724-7377
Attorneys, General Practice Attorneys, Legal Service Plans
Chang & Diamond APC
100 E San Marcos Blvd
San Marcos, CA 92069
(619) 233-6300
Attorneys,  Business Bankruptcy Law Attorneys,  Collection Law Attorneys,  Bankruptcy Law Attorneys
Dehoff Kevin
12775 Steiner Rd
Plymouth, CA 95669
(209) 256-6292
Attorneys
Frank Amador, Attorney
8721 Santa Monica Blvd #658
West Hollywood, CA 90069
(213) 840-6023
Accident & Property Damage Attorneys,  Civil Litigation & Trial Law Attorneys,  Criminal Law Attorne
Bustarde Law
100 E San Marcos Blvd Suite 400
San Marcos, CA 92069
(760) 510-5905
Business Litigation Attorneys, Civil Litigation & Trial Law Attorneys, Landlord & Tenant Attorneys,
People's Paralegal Svc
635 N Twin Oaks Valley Rd
San Marcos, CA 92069
(760) 471-5573
Paralegals
Disability Help Center
277 Rancheros Drive
San Marcos, CA 92069
(760) 798-4461
Disability Services,  Legal Document Assistance,  Social Security Consultants & Representatives,  At
Sargent Law Firm
100 E San Marcos Blvd
San Marcos, CA 92069
(760) 933-4391
Personal Injury Law Attorneys
AAA Attorney Service Inc.
4122 E Chapman Ave
Orange, CA 92869
(714) 633-4167
Attorneys Support & Service Bureaus,  Legal Service Plans,  Attorneys,  Paralegals,  Process Servers
Bailey Myra
5778 Almond St
Paradise, CA 95969
(530) 877-3855
Mediation Services,  Probate Law Attorneys,  Adoption Law Attorneys,  Guardianship Services,  Attorn
Baker Thomas E
722 Fir St
Paradise, CA 95969
(530) 872-3515
Attorneys,  Legal Service Plans,  Probate Law Attorneys,  Estate Planning, Probate, & Living Trust
Financial Relief Legal Advocates Inc.
1047 Antonio Cir.
Orange, CA 92869
(714) 319-3446
Bankruptcy Law Attorneys
The Reeves Law Group - Personal Injury Lawyers
100 E. San Marcos Blvd.
San Marcos, CA 92069
(760) 992-3346
Personal Injury Law Attorneys, Attorneys, Traffic Law Attorneys
Kesluk Brian S
9255 W Sunset Blvd # 411
West Hollywood, CA 90069
(310) 273-3180
General Practice Attorneys, Attorneys, Legal Service Plans
Zev Rubinstein Law Office
100 E San Marcos Blvd # 400
San Marcos, CA 92069
(760) 804-2790
Attorneys Referral & Information Service, Attorneys
Cavalluzzi & Cavalluzzi
9200 W Sunset Blvd Suite 807
West Hollywood, CA 90069
(310) 246-2601
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law
Jury Insight
9220 W Sunset Blvd
West Hollywood, CA 90069
(310) 860-2600
Civil Litigation & Trial Law Attorneys, Legal Clinics, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US