Arkansas Simple Promissory Note

ARKANSAS SIMPLE PROMISSORY NOTE

Before you use this: Use for one unsecured personal loan from one individual to another, outside a lending business. Enter an annual interest rate from 0% to 10%; write 0 for an interest-free loan. This Note has no origination, late, default-interest, or prepayment charge.

Note date: [__/__/____]
Lender: [FULL LEGAL NAME], [MAILING ADDRESS]
Borrower: [FULL LEGAL NAME], [MAILING ADDRESS]
Principal actually advanced: $[AMOUNT] on [__/__/____] by [PAYMENT METHOD]
Annual simple interest rate: [RATE FROM 0 TO 10]%
Payment address or account: [ADDRESS / ACCOUNT]

Promise and interest

This Note becomes effective only when Lender advances funds to Borrower. Borrower then promises to pay Lender only the principal actually advanced above, plus interest on the unpaid principal at the stated annual simple rate. Interest begins on the advance date. For each day, interest equals the unpaid principal multiplied by the annual rate divided by 365, or by 366 for a day in a leap year. Interest does not compound. No fee, higher default rate, or other finance charge is payable under this Note.

Payment dates

Borrower will pay $[AMOUNT] first on [__/__/____] (choose a date after the advance from the 1st through the 28th), then on that same day of each following month until the final due date or earlier full payment. Each installment is limited to the unpaid principal and accrued interest then due. Any unpaid principal and accrued interest are due in full on [__/__/____] (on or after the first scheduled payment date). Payments apply first to accrued interest and then to principal. Borrower may pay early in whole or part without charge. A partial early payment does not postpone the next scheduled date unless Lender agrees in writing.

Missed payment

If Borrower misses a scheduled payment, Lender may send written notice identifying the missed amount to Borrower's address above or a later address Borrower gives in writing. If Borrower does not pay the missed amount within [__] days after receiving that notice, Lender may declare the unpaid principal and accrued interest immediately due and seek payment through lawful process. This cure period and acceleration choice are agreed terms; they create no additional charge.

General terms

This is an unsecured payment promise. Arkansas law governs. A change to the principal, interest rate, or payment dates must be in writing and signed by Borrower and Lender. The parties choose the 0–10% rate entered above as the only loan finance charge. This contractual range is below Ark. Const. amend. 89, § 3's 17% ceiling for loans outside its government and federally insured depository categories; 10% is not stated as a general statutory maximum.

Borrower: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]

Lender acknowledgment of advance and terms: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]