Promissory Note - Simple - Arizona

SIMPLE PROMISSORY NOTE — ARIZONA

Before you use this: This form is for one unsecured private loan to an individual for personal or household use, executed in Arizona, other than medical debt. The lender must not advertise loans or make three or more consumer loans to Arizona residents in a calendar year; if it does, obtain a licensed-lender review. There are no added fees, and the chosen fixed rate must be written before signing.

Date and Arizona place of execution: [__/__/____], [CITY], Arizona
Lender: [LENDER FULL LEGAL NAME], [ADDRESS]
Borrower: [BORROWER FULL LEGAL NAME], [ADDRESS]
Principal advanced: $[AMOUNT]
Advance date: [__/__/____]
Annual simple interest rate: [____]% (enter 0 for an interest-free loan; this form uses no rate above 10%)
Payment address or account: [________________________________]

Promise to pay

This Note becomes effective when Lender advances the principal to Borrower on the advance date recorded above. Borrower promises to repay only the amount actually advanced, plus interest calculated only on unpaid principal at the annual simple rate shown above. If no funds are advanced, Borrower owes nothing under this Note. Interest begins on the advance date and does not compound. For each day, interest equals unpaid principal multiplied by the stated annual rate divided by 365 if that day is in a nonleap calendar year, or by 366 if that day is in a leap calendar year. No origination fee, late fee, default interest, or prepayment penalty is charged. The parties intend all amounts payable for making this loan to be shown in this note.

Payment schedule

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. No installment exceeds the unpaid principal and accrued interest then due. The entire remaining principal and accrued interest are due 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 in part without penalty; a partial early payment does not postpone the next scheduled due date unless both parties sign a change.

Missed payment

If a payment is more than [____] days late, Lender may give Borrower written notice describing the missed amount. If Borrower does not pay it within [____] days after receiving the notice, Lender may declare the unpaid principal and accrued interest immediately due. No additional default charge applies. Lender may pursue payment through lawful remedies, subject to applicable limitation periods and collection law.

Other terms

This is an unsecured obligation. Any amendment must be in writing and signed by Borrower and Lender. Arizona law governs. Notices may be delivered personally or mailed to the addresses above, or to a replacement address given in writing. This note records the entire payment promise between these parties for this advance.

Borrower signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Lender acknowledgment of terms and advance: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Arizona law reference

Ariz. Rev. Stat. § 44-1201(A)(2) sets a 10% annual default for nonmedical loans unless a different rate is contracted for in writing. This form selects a written fixed rate from 0% to 10% and charges no other lending fees. For debt evidenced by a written contract executed in Arizona, § 12-548(A) sets a six-year action period after accrual. Under § 44-1201(A)(2), a judgment based on a qualifying written interest agreement bears its agreed rate, stated in the judgment. Sections 6-601(16) and 6-602(A)(3) distinguish a person not regularly engaged in consumer lending from one who advertises or makes three or more consumer loans in a calendar year.