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!
 
 

A Guide to Promissory Notes in Zip Code 92821

A Guide to Promissory Notes in Zip Code 92821


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 12Law.

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 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 Legal Services near Zip Code 92821
Carroll Gilbert & Bachor LLP
711 S Brea Blvd
Brea, CA 92821
(714) 671-9963
Estate Planning, Probate, & Living Trusts,  Attorneys,  Business Law Attorneys,  Corporation & Par
Domingo Ferari
265 S Randolph Ave # 200
Brea, CA 92821
(714) 256-9171
General Practice Attorneys, Attorneys, Legal Service Plans
We The People
649 W Imperial Hwy
Brea, CA 92821
(714) 255-9110
Divorce Assistance, Paralegals, Legal Forms, Notaries Public, Legal Service Plans, Attorneys, Family
Friedman Jeffrey H
265 S Randolph Ave
Brea, CA 92821
(714) 972-9100
Attorneys
Nassar Law
242 South Orange Avenue #108
Brea, CA 92821
(888) 499-9016
Personal Injury Law Attorneys, Bankruptcy Law Attorneys
Kopy Kat-Copytech
570 W Lambert Rd Ste C
Brea, CA 92821
(714) 850-8705
Attorneys Support & Service Bureaus, Copying & Duplicating Service, Attorneys
Anderson Theodore A
690 S Brea Blvd
Brea, CA 92821
(714) 255-8525
General Practice Attorneys, Attorneys, Legal Service Plans
Universal Specialties Group Inc
460 W Lambert Rd Ste G
Brea, CA 92821
(714) 255-8183
Environment & Natural Resources Law Attorneys, Attorneys
McCune, Brenda
3230 E Imperial Hwy Ste 315
Brea, CA 92821
(714) 646-6894
Family Law Attorneys, Attorneys, Legal Service Plans
William A. Hinz
110 W Fir St
Brea, CA 92821
714.990.3255
Attorneys, Divorce Attorneys, Legal Clinics
Preferred Legal Service
595 W Lambert Rd Ste. 210
Brea, CA 92821
(714) 672-4702
Probate Law Attorneys,  Paralegals,  Eviction Service,  Bankruptcy Services,  Divorce Assistance,  L
Immigration Desiree Dominguez
1215 W. Imperial Hwy, Ste 205
Brea, CA 92821
(714) 871-4529
Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
Hopson Stirling J
411 W Lambert Rd
Brea, CA 92821
(714) 257-3500
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Landlord & Tenant Attorneys,  Crimina
Phoenix Document Preparation
110 W Fir St
Brea, CA 92821
(714) 864-2231
Legal Document Assistance,  Paralegals,  Bankruptcy Services,  Divorce Assistance,  Family Law Attor
Eric V Luedtke Law Offices
3230 E Imperial Hwy Ste 208
Brea, CA 92821
(714) 579-1700
Attorneys, Family Law Attorneys, Labor & Employment Law Attorneys, Divorce Attorneys, Legal Service
The Fridley Law Firm
3 Pointe Dr
Brea, CA 92821
(714) 990-1520
Attorneys, General Practice Attorneys, Wills, Trusts & Estate Planning Attorneys
Diana K. Zilko
418 S Brea Blvd
Brea, CA 92821
(714) 256-1200
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Family Law Attorneys
CRM Lien Svc
3010 Saturn St Ste 103
Brea, CA 92821
(714) 524-0844
Collection Law Attorneys
Victoria Magpantay & Associates
770 S Brea Blvd Ste 219
Brea, CA 92821
(714) 990-0810
Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US