Promissory Note - Simple - California

PROMISSORY NOTE (SIMPLE - CALIFORNIA)

Before use: Complete the interest-rate field before signing; enter 0 to agree expressly to an interest-free loan. Confirm the chosen interest rate, any lender requirements, and this transaction's terms under current California and federal law.

This Note records one unsecured loan between individuals for money used primarily for personal, family, or household purposes. Complete every bracket before signing. Use another form for a business, real-property, or regulated-lender loan.

• Date: [__/__/____]
• Borrower: [FULL LEGAL NAME], [ADDRESS]
• Lender: [FULL LEGAL NAME], [ADDRESS]
• Principal advanced: $[AMOUNT]
• Date funds were delivered: [__/__/____]
• Annual simple interest rate: [RATE]% (not more than 10% under this Note)
• Payment amount and frequency: $[AMOUNT] every [MONTH/WEEK]
• First payment date (after funds were delivered; use day 1-28 for monthly payments): [__/__/____]
• Final payment date (on or after the first payment date): [__/__/____]
• Payment method and destination: [METHOD AND ADDRESS OR ACCOUNT]

Promise to pay

For the principal advanced on the date above, Borrower promises to pay Lender the unpaid principal and interest under this Note. This is an unsecured obligation. No property is pledged by this Note.

Interest and payments

Simple interest accrues only on unpaid principal from the date funds were delivered until that principal is paid. For each day, interest equals unpaid principal multiplied by the annual rate divided by 365 in an ordinary calendar year, or by 366 in a leap calendar year. Unpaid interest does not itself earn interest. The parties agree to no origination fee, recurring fee, late fee, or higher default rate.

Borrower will make the scheduled payments until the debt is paid in full. No scheduled payment may exceed the unpaid principal and accrued interest then due. Each payment applies first to accrued unpaid interest and then to principal. On the final payment date, Borrower will pay all remaining principal and accrued interest. Lender will give Borrower a written receipt or account record on request.

After the first payment, weekly payments are due every seven days; monthly payments are due on the same numbered day of each following month. The final payment date controls any remaining balance.

Borrower may pay any amount early without a prepayment charge. An early payment reduces principal after accrued unpaid interest is paid.

Missed payment

If a payment is more than [NUMBER] calendar days late, Lender may give Borrower written notice describing the amount due. Borrower has [NUMBER] calendar days after receiving that notice to pay the overdue amount. If Borrower does not cure within that period, Lender may declare the remaining unpaid principal and accrued interest immediately due, subject to applicable law. Lender will give written notice of acceleration. The parties agree to no automatic collection fee or attorney fee.

Notices and changes

Notice under this Note must be delivered personally, by mail, or by email to the addresses below. A party may change an address by giving the other party written notice.

• Borrower email: [EMAIL]
• Lender email: [EMAIL]

Any change to this Note must be in a writing signed by Borrower and Lender. California law governs this Note, subject to any law that cannot be changed by agreement. This Note does not waive either party's right to seek a jury trial in a California state court.

Signatures

• Borrower signature: ____________________ Date: [__/__/____]

• Printed name: [NAME]

• Lender acknowledgment of advance and terms: ____________________ Date: [__/__/____]

• Printed name: [NAME]