Promissory Note - Simple

PROMISSORY NOTE — SIMPLE

Before you use this: Fill in the governing state and all payment terms, and check that state's rules for interest, charges, notices, and any required lending disclosures. This note records an unsecured loan and does not claim negotiable-instrument status.

Note date: [__/__/____]

Maker (borrower): [FULL LEGAL NAME]

Maker address: [________________________________]

Payee (lender): [FULL LEGAL NAME]

Payee address: [________________________________]

Promise to pay

For value received, the Maker promises to pay the Payee $[PRINCIPAL AMOUNT], being the principal actually advanced on [__/__/____], plus interest and any charge expressly stated in this Note and permitted by applicable law. Payment will be made in United States dollars to [PAYMENT ADDRESS OR METHOD]. The Payee will give written notice of any change in the payment destination.

This Note is unsecured. It does not grant a lien on property or bind a guarantor.

Interest

Select and complete one term:

☐ No interest. No interest accrues on the principal.

☐ Fixed interest. Interest accrues on unpaid principal at [ANNUAL RATE]% per year from the date the principal is advanced. Interest is calculated using [ACTUAL DAYS / 365-DAY YEAR or OTHER AGREED METHOD]. No interest accrues on unpaid interest or charges unless a separate written term below expressly provides for it and applicable law permits it: [________________________________].

The parties will use a rate and calculation method permitted for this transaction under applicable law. This Note does not declare an unlawful charge automatically valid.

Payments and maturity

The Maker will pay $[PAYMENT AMOUNT] on the [DAY] day of each [MONTH / OTHER PERIOD], beginning [__/__/____], for [NUMBER] scheduled payments. All unpaid principal and accrued interest are due on [__/__/____] (Maturity Date). If payments vary, a schedule signed by both parties and attached as Exhibit A states the due dates and amounts. The completed payment amount, schedule, and Maturity Date must agree with the principal and any interest term selected above.

Unless applicable law requires another order, the Payee will apply payments first to accrued interest and then to principal, and finally to an agreed and lawful charge. The Maker may prepay all or part of the principal at any time without a charge. A partial prepayment reduces later interest on principal repaid, but does not change a scheduled due date unless the parties agree in writing.

Late payment and acceleration

Late charge: [NONE / $[AMOUNT] if a scheduled payment remains unpaid [NUMBER] days after its due date]. A late charge applies only if permitted by applicable law, and no installment will incur more than one late charge. No other default rate, returned-payment fee, collection charge, or fee applies unless expressly stated in a signed addendum and permitted by applicable law.

If a payment is [NUMBER] days overdue, the Payee will give the Maker written notice of the unpaid amount and a way to pay it. The Maker has [NUMBER] days after receipt, or any longer period required by applicable law, to cure. If the Maker does not cure, the Payee may declare the remaining principal and accrued interest immediately due, subject to any restriction imposed by applicable law. The Payee may seek payment through a court with jurisdiction. Each party bears its own collection expenses and attorney fees unless a court awards them under applicable law or the parties add a lawful, signed fee term: [OPTIONAL TERM OR "NONE"].

Records, notices, and changes

The Payee will record the advance, payments, charges, and balance and give the Maker a written payoff amount on reasonable request. A change to this Note must be in writing and signed by both parties. Notices must be delivered personally, by tracked mail, or by another method the recipient agrees to in writing, to the addresses above or a new address given in writing. A notice is effective on actual receipt unless applicable law requires another method or time.

The law of [GOVERNING STATE] governs this Note, subject to mandatory law that applies regardless of that choice. A dispute may be brought in a court with jurisdiction and proper venue. This Note does not require arbitration or waive a jury trial.

Signatures

The Maker signs to promise payment on the terms above. The Payee signs to acknowledge the agreed terms and advance.

Exhibit A — Payment schedule (if needed)

Additional rows or attached schedule signed by both parties: [________________________________]