This required section provides a worksheet to calculate the financial terms, including the payment amount. Press [Ctrl+F1] for more information.
This required section requests basic information including the amount of the Note, the interest rate to be charged, and the names and addresses of the Promisor(s) and Payee(s). Press [Ctrl+F1] for more information.
This optional section specifies an interest rate that will be charged if the principal is not repaid by the due date. Press [Ctrl+F1] for more information.
This required section describes the payment terms, i.e., the payment amounts and payment intervals. Press [Ctrl+F1] for more information.
This optional section specifies a late charge amount for past due payments. Press [Ctrl+F1] for more information.
This optional section specifies discount terms if the note is repaid prior to the due date. Press [Ctrl+F1] for more information.
This optional section allows the payee to request payment of the entire note balance if an installment is not paid when due. Press [Ctrl+F1] for more information.
This optional section allows the promisor to make pre- payments without penalty. Press [Ctrl+F1] for more information.
This optional section requires the promisor to pay all costs of collection on the note. Press [Ctrl+F1] for more information.
This optional section specifies the events that cause the promisor to be in default of the note. Press [Ctrl+F1] for more information.
This optional section states that the note is secured by property owned by the promisor. Press [Ctrl+F1] for more information.
This optional section requires the promisor to maintain term life insurance payable to the payee in the event of the promisor's death. Press [Ctrl+F1] for more information.
This required section states the general provisions of the document including which state laws will govern the document, provisions for renewal and enforceability of the document. Press [Ctrl+F1] for more information.
This required section provides for one or more promisors to sign and date the note, acknowledging responsibility for the note. Press [Ctrl+F1] for more information.
This optional section allows the payee to assign the note to another party. Press [Ctrl+F1] for more information.
This optional section provides for a third party who will be obligated to pay the note if the promisor fails to do so. Press [Ctrl+F1] for more information.
Times New Roman
Promissory Note
PMNOTE
The Promissory Note is a document that states the terms, rights and obligations that apply to a loan. It specifies the amount of the loan, the interest rate, the repayment terms and includes other specific provisions.
MONTHLY'
!!! !! !! ! ! ! !!!!!!!!! !!!!!
Enter the principal amount of the Note.
Using the format MM/DD/YYYY, enter the date of the Note. This information will determine the first payment date and the due date of the Note which appear later in this section.
Enter an X if the Promisor will be required to pay interest on the Note.
The program provides the "Date of Note" as the date when interest charges begin. You can provide an "interest free" period by entering a later date in this field. For example, if Date of Note is May 1, 1995, a month of "free interest" can be provided by entering June 1, 1995, as the "Date Interest Charges Begin".
Enter an X if the Promisor will not be required to pay interest on the Note.
Enter the interest rate, inserting the decimal point where appropriate. For example, "8.25". Do not make any entry if interest will not be charged.
Enter an X if payment of the Note must be made in full at the request of the Payee.
Enter an X if payments of the Note must be made in full on a specific date.
Enter an X if installment payments of interest only will be required. For example, interest will be due on a quarterly or monthly basis, but the principal will not be due until a future date that is specified in the note.
Enter an X if payments will be due in installments of either principal only or principal and interest.
Enter the type of installments, for example; weekly, bi-weekly, monthly.
This date is provided by the program. This date may be changed by changing the "Date Interest Charges Begin".
This date is calculated, based on the "Number of Payments," the "Payment Frequency," and the "Date of Note".
Enter the Payee's state/province or edit the information as desired.
Enter the Payee's city or edit the information as desired.
Enter the Promisor's name or use the P.I. Manager to select and paste a record. The Promisor is the person (or persons) making payments on the Note.
Enter the name of the second Promisor or use the P.I. Manager to select and paste a record.
Enter an X if there is more than one Promisor.
The program provides the principal amount, based on the "Amount of Note" previously entered.
The program provides the interest rate, based on the "Interest Rate" previously entered.
Enter the number of payments that will be required. For example, if monthly payments over a 3 year period will be required, enter "36".
If desired, enter a balloon amount. The program will adjust the Payment Amount, based on the amount that you enter as the Balloon Payment.
Enter an X if you want the program to print the amortization schedule when this document is printed.
PMN01
MONTHLY
! Financial Worksheet Section (1 of 16)
Promissory Note Financial Worksheet
Amount of Note: $! Date of Note: !
! Interest Rate: !%
! No interest will be charged.
Payment Frequency:
! Due on demand
! In full on a specific date
! Installment payments of interest only
! Installment payments
! Principal Only
! Principal and Interest as calculated below:
Note: the following FINANCIAL CALCULATOR is only applicable if installment payments of principal only OR principal and interest will be required.
FINANCIAL CALCULATOR
Beginning Principal !
Annual Interest Rate !%
Number of Payments !
Date Interest Charges Begin !
First Payment Date !
Payment Frequency !
Due Date of Note !
Payment Amount !
Balloon Payment !
! Print Amortization Schedule
Enter the principal amount of the Note.
Using the format MM/DD/YYYY, enter the date of the Note. This information will determine the first payment date and the due date of the Note which appear later in this section.
Enter an X if the Promisor will be required to pay interest on the Note.
Enter the interest rate, inserting the decimal point where appropriate. For example, "8.25". Do not make any entry if interest will not be charged.
Enter an X if the Promisor will not be required to pay interest on the Note.
Enter an X if payment of the Note must be made in full at the request of the Payee.
Enter an X if payments of the Note must be made in full on a specific date.
Enter an X if installment payments of interest only will be required. For example, interest will be due on a quarterly or monthly basis, but the principal will not be due until a future date that is specified in the note.
Enter an X if payments will be due in installments of either principal only or principal and interest.
Installment payments of principal only will be required. The Promisor will not be required to pay interest on the Note. The program completes this field by transferring the information from a previous field.
Payments will be due in installments that include both interest and principal. For example, mortgage payments generally include both interest and principal, with the initial payments constituting primarily interest. The program completes this field by transferring the information from a previous field.
The program provides the principal amount, based on the "Amount of Note" previously entered.
The program provides the interest rate, based on the "Interest Rate" previously entered.
Enter the number of payments that will be required. For example, if monthly payments over a 3 year period will be required, enter "36".
The program provides the "Date of Note" as the date when interest charges begin. You can provide an "interest free" period by entering a later date in this field. For example, if Date of Note is May 1, 1995, a month of "free interest" can be provided by entering June 1, 1995, as the "Date Interest Charges Begin".
This date is provided by the program. This date may be changed by changing the "Date Interest Charges Begin".
Enter the type of installments, for example; weekly, bi-weekly, monthly.
This date is calculated, based on the "Number of Payments," the "Payment Frequency," and the "Date of Note".
If desired, enter a balloon amount. The program will adjust the Payment Amount, based on the amount that you enter as the Balloon Payment.
Enter an X if you want the program to print the amortization schedule when this document is printed.
PMN02
! Promisor Information Section (2 of 16)
PROMISSORY NOTE
$! Date: !
For value received, the undersigned
! ("the Promisor") promises
! [Second Promisor] and !
(collectively the "Promisor") each as principal, jointly and severally, promise
to pay to the order of !
! [Second Payee] and !
, (the "Payee"), at
!, ! !,
! Country: !,
(or at such other place as the Payee may designate in writing) the sum of $! with
! interest from !, on the unpaid principal at the rate of !% annually.
! no interest.
The program provides the principal amount, based on the "Amount of Note" previously entered in the first section. You can only change this amount by changing the "Beginning Principal" in the first section.
The program provides the date, based on the "Date of Note" previously entered in the first section. You can only change this date by changing the "Date of Note" in the first section.
Enter the Promisor's name or use the P.I. Manager to select and paste a record. The Promisor is the person (or persons) making payments on the Note.
Enter an X if there is more than one Promisor.
Enter the name of the second Promisor or use the P.I. Manager to select and paste a record.
Enter the Payee's name or use the P.I. Manager to select and paste a record. The Payee is the person (or persons) who will receive payments from the Promisor.
Enter an X if there is more than one Payee.
Enter the name of the second Payee or use the P.I. Manager to select and paste a record.
Enter the Payee's street address or edit the information as desired.
Enter the Payee's extended street address or edit the information as desired.
Enter the Payee's city or edit the information as desired.
Enter the Payee's state/province or edit the information as desired.
Enter the Payee's zip/postal code or edit the information as desired.
Enter an X to include the country in which the Payee resides, if outside the United States.
Enter the Payee's country or edit the information as desired.
The program completes the amount to be paid by transferring an amount previously entered or calculated in the first section. You can change this amount only by changing the "Amount of Note" in the first section.
The program completes this field by transferring the information from the first section. You may modify the information only by returning to that section.
The program provides the date by transferring the "Date Interest Charges Begin" previously entered in the first section. You can change this amount only by changing the "Date Interest Charges Begin" in the first section.
The program provides the interest rate by transferring the "Interest Rate" previously entered in the first section. You can change this amount only by changing the "Interest Rate" in the first section.
PMN03
! Optional Default Rate Section (3 of 16)
Unpaid principal after the Due Date shown below shall accrue interest at a rate of !% annually until paid.
Enter an X to include a paragraph that provides for a higher interest rate if the Note is not paid in full by the due date.
Enter the default interest rate. For example, a default interest rate of 10.5% should be entered as "10.5".
PMN04
! Payment Terms Section (4 of 16)
The unpaid principal
! and accrued interest
shall be payable
[The selection that is marked below is based on your response to a similar question on the FINANCIAL WORKSHEET SECTION 1.]
! on demand.
! in full on ! (the "Due Date").
! [Installment Payments - Interest Only] in ! installments of interest only beginning on !, and continuing until !, (the "Due Date"), at which time the remaining unpaid principal and interest shall be due in full.
! [Installment Payments - Principal Only OR Principal and Interest] in ! installments of $!, beginning on !, and continuing until !, (the "Due Date"), at which time the remaining unpaid principal or principal and interest shall be due in full.
! [Balloon statement] THE PROMISOR UNDERSTANDS THAT THE PAYMENT OF THE ABOVE INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL BALANCE OF THE NOTE, AND THEREFORE, A BALLOON PAYMENT MAY BE DUE ON THE DUE DATE.
All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment of principal.
The program enters an X to include the phrase "and accrued interest", unless you previously indicated that "no interest" will be charged on the Note.
An "X" appears in this field if you marked this response on the FINANCIAL WORKSHEET SECTION (SECTION 1). You can only change your response by making the appropriate change at SECTION 1.
Using the format MM/DD/YYYY, enter the date on which the Note will be due.
Enter the type of installments, for example; weekly, bi-weekly, monthly.
Using the format MM/DD/YYYY, enter the date on which the first payment will be due.
An "X" appears in this field if you marked this response on the FINANCIAL WORKSHEET SECTION (SECTION 1). You can only change your response by marking the appropriate change in SECTION 1.
The program provides the payment frequency by transferring the "Payment Frequency" previously entered in the first section. You can only change this amount by changing the "Payment Frequency" in the first section.
The program provides the payment amount by transferring the "Payment Amount" previously entered in the first section. You can only change this amount by changing the "Payment Amount" in the first section.
The program provides the date by transferring the "First Payment Date" previously entered in the first section. You can only change this date by changing the "First Payment Date" in the first section.
The program provides the date by transferring the "Due Date" previously entered in the first section. You can only change this date by changing the "Due Date" in the first section.
The program includes this balloon payment if the FINANCIAL CALCULATOR in the first section shows that a balloon payment will be due.
PMN05
! Optional Late Charge Section (5 of 16)
The Promisor promises to pay a late charge of $! for each installment that remains unpaid more than ! day(s) after its due date. This late charge shall be paid as liquidated damages in lieu of actual damages, and not as a penalty.
Enter an X to include a paragraph that requires the Promisor to pay a late charge if an installment is not paid by the due date.
Enter the dollar amount that will be charged each time that an installment is not paid within the grace period.
Enter the number of days that may pass before the late charge will be assessed.
PMN06
! Optional Discount Section (6 of 16)
If the principal and accrued interest are paid in full on or before !, the Promisor shall be entitled to a discount equal to !% of the unpaid principal immediately prior to such payment.
Enter an X to include a discount paragraph that offers the Promisor an incentive to pay off the Note prior to the due date.
Using the format MM/DD/YYYY, enter the date by which the Note must be paid in full to receive a discount. Generally, this date should be after the "Date of Note" and prior to the "Due Date of Note", as shown in SECTION 1.
Enter the amount of the discount as a percentage of the amount of the final payment being made. For example, if you state that the Promisor will be entitled to a 30% discount for paying off the Note early, the Promisor could make a final payment of $140.00 on an unpaid balance of $200.00.
PMN07
! Optional Acceleration Section (7 of 16)
If any installment is not paid when due, the remaining unpaid balance and accrued interest shall become due immediately at the option of the Payee.
Enter an X to include a paragraph that gives the Payee the right to declare all of the remaining installments due at once, if any installment is not paid when due. It is recommended that this paragraph be included if you are the Payee.
PMN08
! Optional Prepayment Section (8 of 16)
The Promisor reserves the right to prepay this Note
! (in whole or in part) prior to the due date with no prepayment penalty.
! by making payment in full of the then remaining unpaid principal and accrued interest.
Enter an X to include a paragraph that allows the Promisor to prepay the Note without penalty. This paragraph offers a limited incentive to prepay the Note.
Enter an X to allow the Promisor to prepay the Note in whole or in part without penalty.
Enter an X if the Promisor must prepay the entire Note to avoid paying a prepayment penalty.
PMN09
! Optional Costs Section (9 of 16)
If any payment obligation under this Note is not paid when due, the Promisor promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process.
Enter an X to include a paragraph that requires the Promisor to pay the Payee's costs, if the Payee is required to hire an attorney or incur other costs in order to collect unpaid amounts from the Promisor. It is recommended that this paragraph be included if you are the Payee.
PMN10
! Optional Events of Default Section (10 of 16)
If any of the following events of default occur, this Note and any other obligations of the Promisor to the Payee, shall become due immediately, without demand or notice:
1) the failure of the Promisor to pay the principal and any accrued interest in full on or before the Due Date;
2) the death of the Promisor(s) or Payee(s);
3) the filing of bankruptcy proceedings involving the Promisor as a Debtor;
4) the application for appointment of a receiver for the Promisor;
5) the making of a general assignment for the benefit of the Promisor's creditors;
6) the insolvency of the Promisor; or
7) the misrepresentation by the Promisor to the Payee for the purpose of obtaining or extending credit.
! In addition, the Promisor shall be in default if there is a sale, transfer, assignment, or any other disposition of any assets pledged as security for the payment of this Note, or if there is a default in any security agreement which secures this Note.
! If any of the above defaults apply to one Promisor, all Promisors shall be deemed in default of this Note regardless of whether all Promisors are directly involved in the default.
Enter an X to include a paragraph that lists the events that will be considered defaults under the Note. (For example, death of the Promisor, Promisor's filing for bankruptcy, or a misrepresentation to obtain credit.) NOTE: It is recommended that this paragraph be included.
Enter an X to include a paragraph that states that the Promisor shall be in default if the property offered as security is sold or transferred.
Enter an X to include a paragraph that states that the default of one Promisor will be considered a default by all Promisors. This paragraph should be included if there will be more than one Promisor.
PMN11
! Optional Security Section (11 of 16)
This Note is secured by a
dated !. The Payee is not required to rely on the above security for the payment of this Note in the case of default, but may proceed directly against the Promisor.
Enter an X to include a paragraph which provides that the Promisor will be pledging property (in a separate security agreement) to secure the repayment of the Note. It is advisable to contact an attorney if a security agreement will be used. Press [Ctrl+F1] for more information.
Enter a description of the security agreement in which the Promisor will be pledging property to secure the repayment of the Note.
Using the format MM/DD/YYYY, enter the date of the agreement.
PMN12
! Optional Life Insurance Section (12 of 16)
Promisor is required to maintain term life insurance payable to the Payee in an amount sufficient to pay the principal and accrued interest in full in the event of Promisor's death.
Enter an X to include a paragraph that requires the Promisor to provide credit life insurance. This insurance would name the Payee as the primary beneficiary and would be of a sufficient amount to pay the Note in full if the Promisor dies.
PMN13
! General Provisions Section (13 of 16)
If any one or more of the provisions of this Note are determined to be unenforceable, in whole or in part, for any reason, the remaining provisions shall remain fully operative.
All payments of principal and interest on this Note shall be paid in the legal currency of the United States. Promisor waives presentment for payment, protest, and notice of protest and nonpayment of this Note.
No renewal or extension of this Note, delay in enforcing any right of the Payee under this Note, or assignment by Payee of this Note shall affect the liability of the Promisor. All rights of the Payee under this Note are cumulative and may be exercised concurrently or consecutively at the Payee's option.
This Note shall be construed in accordance with the laws of the State of !.
Enter the specific state whose laws will govern the interpretation of the provisions of the Note and disputes between the Promisor and the Payee or edit the information. The state selected must have some connection to the Note.
PMN14
! Signature Section (14 of 16)
Signed this _____ day of _______________, 19____, at !, !.
Enter the city in which the promissory note will be signed or edit the information as desired.
Enter the state/province in which the promissory note will be signed or edit the information as desired.
The program transfers the Promisor's name from a previous section. This information may be modified without affecting earlier data. If the Promisor is a company, enter the contact person's name or use the P.I. Manager to select and paste a record.
Enter an X to include the title of the person who will sign the Note.
Enter the title of the person who will sign the Note or edit the information as desired.
The program completes this checkbox if you indicated earlier that there will be a second Promisor.
The program transfers the Second Promisor's name from a previous section. This information may be modified without affecting earlier data. If the Promisor is a company, enter the contact person's name or use the P.I. Manager to select and paste a record.
Enter an X to include the title of the person who will sign the Note for the second Promisor.
PMN15
! Optional Assignment Section (15 of 16)
ASSIGNMENT
For value received, the above Note is assigned and transferred to
__________________________________________________, ("Assignee") of
Enter an X to include a paragraph that permits the Payee to assign the Note to another party. The Promisor would then make payments to this new party instead of the Payee in the Note.
PMN16
! Optional Guaranty Section (16 of 16)
GUARANTY
! [Individual Guarantor]
! [Corporate Guarantor]
unconditionally guarantees all the obligations of the Promisor under this Promissory Note.
Enter an X if there is a third party who will serve as a Guarantor on this Note. A Guarantor is a person or entity who is obligated to make the Note payments if the Promisor fails to do so.
Enter an X if the Guarantor is an individual.
Enter the Guarantor's name or use the P.I. Manager to select and paste a record.
Enter an X if the Guarantor is a corporation.
Enter the corporate name or use the P.I. Manager to select and paste a record.
This field is marked if you previously indicated that the Guarantor is an individual.
This field is marked if you previously indicated that the Guarantor is a corporation.
Enter the name of the company officer who will sign the guaranty or use the P.I. Manager to select and paste a record.
Enter an X to include the title of the company officer.
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