Balloon Payment Promissory Note

BALLOON PAYMENT PROMISSORY NOTE

Before you use this: Select the governing state and complete the parties, actual funding, price, dates, payment schedule and any applicable consumer, business or securities review. This note records one identified advance. Any collateral or separate credit transaction requires its own signed document.

Issue date: [__/__/____] Note number: [IDENTIFIER]

Borrower: [EXACT LEGAL NAME, ENTITY TYPE IF ANY, ADDRESS]

Lender: [EXACT LEGAL NAME, ENTITY TYPE IF ANY, ADDRESS]

Principal advanced: $[AMOUNT] on [FUNDING DATE] by [METHOD AND TRANSACTION RECORD]. Borrower acknowledges receipt of the amount actually advanced. No unadvanced amount becomes principal under this note.

Governing state: [STATE] Payment address or account: [DETAIL]

Promise and pricing

For value received, Borrower promises to pay Lender the unpaid principal actually advanced, interest calculated under this note, and only the specific charges stated below. The interest rate is [FIXED RATE]% per year using [ACTUAL/365 OR OTHER SPECIFIED DAY-COUNT METHOD]; interest begins [DATE] and is calculated on the unpaid principal. If a variable rate is chosen instead, the index, observation date, margin, adjustment frequency, floor and ceiling are [COMPLETE TERMS]; delete the fixed-rate choice. Default interest, if any: [RATE, TRIGGER, PERIOD AND LIMIT OR NONE].

Funding record: [BANK CONFIRMATION OR RECEIPT, EXHIBIT]

Permitted fees: [EACH FEE, AMOUNT, TRIGGER AND RECIPIENT OR NONE]. No fee is implied from a cross-reference or a blank field.

Installments and balloon

Borrower shall pay [NUMBER] installments of $[AMOUNT] each on [DAY] of each [MONTH / OTHER PERIOD], beginning [DATE] and ending [DATE]. No installment exceeds the actual unpaid amount then due under this note, and no later installment or balloon is due after payment in full. Each installment includes [PRINCIPAL / INTEREST / BOTH] calculated as [EXACT METHOD]. The agreed schedule is attached as Exhibit A and shows, for each due date, beginning balance, interest, principal, payment and ending balance.

Balloon due at maturity: On [MATURITY DATE], Borrower shall pay all unpaid principal plus interest accrued through that date, estimated on the signed schedule at $[BALLOON AMOUNT]. The estimate assumes every scheduled payment is made on time at the stated rate; early, late or changed payments alter the actual balance. Lender shall send the final itemized balance by [DATE OR NUMBER DAYS BEFORE MATURITY]. The balloon is due on the stated maturity date even if Lender does not send a reminder, subject to applicable notice law. No refinancing or extension is promised.

Balloon acknowledgement: Borrower understands that, if the signed schedule is followed without early or extra payments, the scheduled installments do not repay the principal in full and an estimated $[AMOUNT] will remain due at maturity. Borrower initials: [INITIALS].

Exhibit A — signed installment and balloon schedule: [ATTACH EXACT DATES AND AMOUNTS].

Payment administration

Payments are applied first to [DOCUMENTED PERMITTED COLLECTION COSTS, IF ANY], then accrued unpaid interest, then principal, subject to the selected state's law. Lender will provide a dated accounting showing advances, interest, charges, payments and balance on reasonable written request. Borrower may prepay [AT ANY TIME WITHOUT CHARGE / ON SPECIFIED TERMS AND CHARGE REVIEWED UNDER SELECTED LAW]; interest after prepayment is calculated only on remaining principal.

If a payment is not received within [NUMBER] days after its due date, Lender may send a written default notice specifying the missed amount, payment history and a [NUMBER]-day cure period. After the cure period, Lender may declare the unpaid balance of this note due by written notice, subject to any mandatory rule of the selected state. A late charge is [AMOUNT / METHOD / NONE], assessed only once per late payment and not duplicated in default interest.

A demand, default notice or address change must be sent by [TRACKED MAIL / PERSONAL DELIVERY / AGREED EMAIL] to the addresses stated above and is effective on [ACTUAL RECEIPT / OTHER AGREED EVENT]. Payment instructions may be changed only by a verified written notice from Lender. Borrower and Lender may amend this note only by a writing signed by both. An assignment carries only the unpaid balance and defenses arising from this note, with written notice to Borrower. [STATE] law governs, subject to mandatory law. No arbitration, jury waiver, automatic lien, injunction or personal liability of a non-signer is created here.

Borrower signature: [SIGNATURE / NAME / TITLE IF ENTITY / DATE]

Lender acknowledgment of funding and terms: [SIGNATURE / NAME / TITLE IF ENTITY / DATE]