Installment Promissory Note

All states Financial & Banking Updated August 21, 2026 Free Word and PDF

INSTALLMENT PROMISSORY NOTE — TRANSACTION AND DRAFTING PACKET

Use this packet to collect facts and create reviewed drafting instructions. It is deliberately non-operative: it contains no promise to pay and no signature block. Blank fields and unchecked boxes are unresolved.

1. Matter control

Item Information
Internal matter or loan number [________________________________]
Proposed maker or borrower [________________________________]
Proposed payee or lender [________________________________]
Other obligors [________________________________]
Business or personal purpose [________________________________]
Proposed funding date [__/__/____]
Target first payment date [__/__/____]
Target maturity date [__/__/____]
Reviewing counsel and jurisdictions [________________________________]
Accounting or servicing reviewer [________________________________]

2. Transaction-classification gate

Counsel should classify the transaction before anyone drafts or signs an operative instrument.

2.1 Parties and purpose

Question Response and supporting record
Maker is an individual, entity, trust, estate, or other person [________________________________]
Payee is an individual, regulated lender, seller, employer, affiliate, or other person [________________________________]
Personal, family, household, business, investment, tax, settlement, or purchase-price purpose [________________________________]
Principal will be newly advanced, refinanced, consolidated, deferred, or evidenced from an existing obligation [________________________________]
Credit was advertised, brokered, arranged, or offered across jurisdictions [________________________________]
Related goods, services, real estate, employment, or litigation transaction [________________________________]
Borrower, lender, collateral, and payment locations [________________________________]
Entity authority, fiduciary capacity, sanctions, insolvency, or bankruptcy concern [________________________________]

2.2 Structure

☐ Unsecured installment obligation

☐ Personal-property collateral proposed

☐ Real-property collateral proposed

☐ Guaranty or co-maker proposed

☐ Seller-financed transaction

☐ Variable-rate structure

☐ Balloon or irregular payments

☐ Forgivable, contingent, convertible, subordinated, or participation feature

☐ Consumer or regulated-credit review required

☐ Cross-border, multi-state, tribal, or choice-of-law issue

Counsel's classification and required separate documents: [________________________________]

3. Current-authority register

Do not draft from generic UCC labels, remembered rate limits, or a prior form. Record the current official text, operative version, effective date, and drafting consequence for every applicable jurisdiction.

Issue Jurisdiction Current official authority or form Version or effective date Drafting instruction
Instrument and negotiability classification [________] [________] [________] [________]
Interest and charge limits [________] [________] [________] [________]
Lender, broker, or servicer licensing [________] [________] [________] [________]
Consumer disclosures and timing [________] [________] [________] [________]
Late, default, dishonored-payment, and collection charges [________] [________] [________] [________]
Prepayment rights or charges [________] [________] [________] [________]
Acceleration, notice, and cure [________] [________] [________] [________]
Attorney fees and collection expenses [________] [________] [________] [________]
Electronic records, signatures, and transferable-record treatment [________] [________] [________] [________]
Assignment, transfer, and servicing notices [________] [________] [________] [________]
Collateral attachment, perfection, priority, and enforcement [________] [________] [________] [________]
Guaranty or co-maker requirements [________] [________] [________] [________]
Tax, withholding, reporting, or imputed-interest issue [________] [________] [________] [________]
Choice of law, forum, arbitration, and jury treatment [________] [________] [________] [________]
Execution, witnessing, acknowledgment, delivery, and retention [________] [________] [________] [________]
Other transaction-specific rule [________] [________] [________] [________]

Research completed by and date: [________________________________]

Open legal questions: [________________________________]

4. Principal and funding record

Item Amount, date, or source
Cash advanced at closing $[________]
Prior balance being refinanced or consolidated $[________]
Purchase-price amount deferred $[________]
Capitalized interest or approved charge $[________]
Discount, withheld proceeds, or original-issue adjustment $[________]
Other component $[________]
Proposed face principal $[________]
Net proceeds delivered to maker $[________]
Funding method and evidence [________________________________]
Conditions to funding, if any [________________________________]

Principal reconciliation completed by: [________________________________]

Do not describe a fee as principal or exclude a charge from review merely because the economics appeared in an earlier document.

5. Interest calculation inputs

Input Proposed value Reviewer approval
Fixed or variable structure [________________________________] [________]
Stated annual rate or complete formula [________________________________] [________]
Index source, publication time, and fallback [________________________________] [________]
Margin, floor, cap, and adjustment frequency [________________________________] [________]
Accrual start and stop events [________________________________] [________]
Day-count convention [________________________________] [________]
Compounding or capitalization [________________________________] [________]
Rounding method [________________________________] [________]
Default-rate trigger and duration [________________________________] [________]
Maximum-lawful-charge instruction, if counsel approves one [________________________________] [________]

Independent calculation or amortization review: [________________________________]

6. Charge inventory

List every direct and indirect economic charge, including amounts paid to an affiliate or third party when relevant to the legal and accounting review.

Charge Amount or formula Recipient Trigger and timing Included in legal review
Origination or documentation [________] [________] [________] [________]
Commitment or unused amount [________] [________] [________] [________]
Late payment [________] [________] [________] [________]
Returned or failed payment [________] [________] [________] [________]
Default interest [________] [________] [________] [________]
Prepayment [________] [________] [________] [________]
Collection expense [________] [________] [________] [________]
Servicing or payment method [________] [________] [________] [________]
Third-party or collateral cost [________] [________] [________] [________]
Other [________] [________] [________] [________]

All-in economic review completed by: [________________________________]

7. Installment schedule instructions

Choose a structure only after the principal, interest, charges, dates, and rounding method reconcile.

☐ Equal principal-and-interest payments

☐ Fixed principal plus accrued interest

☐ Interest-only period followed by amortization

☐ Balloon payment

☐ Graduated, seasonal, irregular, or customized schedule

☐ Variable-rate payment recalculation

Payment number Due date Principal Interest Disclosed charge Total
[____] [__/__/____] $[________] $[________] $[________] $[________]
[____] [__/__/____] $[________] $[________] $[________] $[________]
[____] [__/__/____] $[________] $[________] $[________] $[________]
Final [__/__/____] $[________] $[________] $[________] $[________]

Complete schedule file and version: [________________________________]

Payment total, final balance, and maturity reconciliation: [________________________________]

8. Payment-handling instructions

Issue Selected term
Payment address or account [________________________________]
Permitted payment methods [________________________________]
Currency [________________________________]
Time zone and receipt cutoff [________________________________]
Weekend or holiday treatment [________________________________]
Application order [________________________________]
Partial or disputed payment treatment [________________________________]
Payoff statement process [________________________________]
Changed payment instructions and fraud-control verification [________________________________]
Servicer and borrower-contact information [________________________________]

9. Prepayment and schedule changes

Issue Negotiated instruction
Full prepayment [________________________________]
Partial prepayment [________________________________]
Required notice [________________________________]
Charge or premium [________________________________]
Application to principal, installments, or maturity [________________________________]
Re-amortization or payment recalculation [________________________________]
Extension, deferral, modification, or capitalization process [________________________________]

No prepayment outcome or schedule adjustment is selected by this packet.

10. Default and remedy design

Do not import automatic bankruptcy acceleration, broad cross-default, setoff, confession, self-help, fee recovery, or a fixed cure period from another note.

Issue Counsel-approved instruction
Payment default [________________________________]
Notice method and content [________________________________]
Cure period or other condition [________________________________]
Acceleration election and effective event [________________________________]
Nonpayment events, if appropriate to the selected instrument [________________________________]
Cross-default or cross-acceleration [________________________________]
Default interest and late charge interaction [________________________________]
Collection expenses and attorney fees [________________________________]
Setoff or account-control issue [________________________________]
Waiver, reinstatement, and later defaults [________________________________]
Insolvency and bankruptcy review [________________________________]
Other remedy or limitation [________________________________]

11. Collateral, guaranties, and related documents

An installment note does not by itself complete a collateral, perfection, priority, mortgage, deed-of-trust, guaranty, subordination, or intercreditor plan.

Related document or step Required? File, status, and responsible reviewer
Loan or credit agreement [________] [________________________________]
Security agreement [________] [________________________________]
Financing statement or other perfection step [________] [________________________________]
Mortgage, deed of trust, or real-estate filing [________] [________________________________]
Control, possession, notation, or title step [________] [________________________________]
Guaranty or co-maker agreement [________] [________________________________]
Subordination or intercreditor agreement [________] [________________________________]
Insurance, appraisal, inspection, or valuation [________] [________________________________]
Board, member, trustee, or other authority record [________] [________________________________]
Consumer or transaction disclosure package [________] [________________________________]

12. Instrument-status design

Counsel should decide whether the operative document is intended to qualify for a particular instrument status and then test every proposed term against the current law of each relevant jurisdiction.

Design question Decision and drafting consequence
Payable to a named person, order, bearer, or otherwise [________________________________]
Fixed monetary amount and described interest or charges [________________________________]
Definite payment dates or ascertainable timing [________________________________]
Conditions to payment [________________________________]
References to or incorporation of other writings [________________________________]
Additional undertakings or instructions [________________________________]
Collateral, prepayment, acceleration, forum, or waiver language [________________________________]
Transfer restrictions or legends [________________________________]
Paper original, electronic record, or another execution medium [________________________________]
Intended status and counsel's conclusion [________________________________]

Do not label the operative document “UCC compliant,” “negotiable,” or “non-negotiable” until counsel completes and records this analysis.

13. Disputes and general terms

Issue Selection after jurisdiction-specific review
Governing law and connection to the transaction [________________________________]
Court forum and venue [________________________________]
Arbitration administrator, rules, seat, fees, and court exceptions [________________________________]
Jury-trial treatment [________________________________]
Notices and effective time [________________________________]
Assignment and transfer restrictions [________________________________]
Amendments and waivers [________________________________]
Integration with related documents [________________________________]
Severability or reformation [________________________________]
Counterparts and electronic process [________________________________]
Confidentiality or data handling [________________________________]

14. Execution, delivery, and control record

Control Instruction or completion record
Correct legal names and capacity [________________________________]
Signing authority evidence [________________________________]
Witness, acknowledgment, or notarization review [________________________________]
Required legends, notices, or disclosures [________________________________]
Final exhibits and schedule version [________________________________]
Signing method and platform [________________________________]
Delivery and funding sequence [________________________________]
Custodian or controller of authoritative record [________________________________]
Original replacement, lost-note, or transfer procedure [________________________________]
Retention and access controls [________________________________]

15. Approval and drafting handoff

Review item Initials and date
Transaction and jurisdiction classification complete [________]
Current official authority register complete [________]
Principal and funding reconcile [________]
Interest and all charges approved [________]
Payment schedule independently checked [________]
Defaults, notices, cure, and remedies approved [________]
Instrument-status analysis complete [________]
Separate collateral and guaranty documents complete [________]
Dispute and execution terms approved [________]
Operative note approved for signature by counsel [________]

16. Signature hold

This packet is not an installment promissory note and should not be signed as a promise to pay.

Operative note file or version: [________________________________]

Prepared by: [________________________________]

Approved by counsel: [________________________________]

Approved by accounting or servicing reviewer: [________________________________]

Exhibit A — Complete amortization schedule

[Attach the reviewed schedule and identify its file or version.]

Exhibit B — Charge and proceeds reconciliation

[Attach the reviewed all-in charge and net-proceeds calculation.]

Exhibit C — Related-document register

Document Current version Executed or completed Custodian
Operative note [________] [________] [________]
Loan or credit agreement [________] [________] [________]
Security document [________] [________] [________]
Guaranty [________] [________] [________]
Disclosure package [________] [________] [________]
Authority record [________] [________] [________]
Funding evidence [________] [________] [________]
Other [________] [________] [________]

This template is provided for informational purposes only and does not constitute legal advice.

Insert Image

Insert Table

Watch Ezel in action (sample case)Choose a plan

All changes saved
Save
Export
Export as DOCX
Export as PDF
Generating PDF...
promissory_note_installment_universal.pdf
Ready to export as PDF or Word
AI is editing...
Chat
Review

Draft it in the editor

The AI drafts each section from your answers and you review every word. Drafting from scratch takes hours; finish yours for $99 one time.

  • Built on this template
    Uses the state version and the statutes it cites.
  • Formatted like the template
    Captions, numbering and layout stay intact.
  • AI editing
    Rewrite any section from your own notes.
  • Export as PDF and Word
    Yours to review, sign, or file.
Secure checkout via Stripe
Need to customize this document?

Related legal templates

The same document for another state, and more Financial & Banking forms.

State-specific versions

Alabama Alaska California Florida New York Texas

More Financial & Banking templates

Abstract of Judgment - Real Property Lien Recording Agricultural Loan Agreement (Crop/Livestock Collateral) Balloon Payment Promissory Note Bank Levy Instructions Bid Bond Borrower Defense Loan and Financial Impact Worksheet Browse all

About this template

Last updated
August 21, 2026
Citations checked
August 21, 2026
Jurisdiction
All states
Category
Financial & Banking

Financial and banking documents govern loans, security interests, account agreements, and commercial transactions between lenders, borrowers, and financial institutions. Promissory notes, guaranties, security agreements, and UCC filings have precise legal requirements, and mistakes can leave a lender unsecured or a borrower on the hook for more than they agreed to. Well-drafted finance paperwork protects both sides and keeps the deal enforceable if something goes wrong later.

Not legal advice

This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.

Checked against the law it cites

A reviewer verified this template's legal citations against the official source on August 21, 2026.

Draft your Installment Promissory Note in the editor

Answer a few questions, let the AI editor draft each section from your answers, review it, and download Word and PDF. $99 one time, or $249 per month for every document and every Ezel app.