Promissory Note - Simple - Colorado

SIMPLE PROMISSORY NOTE — COLORADO

Before you use this: This form is for one unsecured private loan to an individual for personal or household use, excluding medical debt. The lender must not regularly make or arrange loans as a business. A regular lender or a loan with collateral, fees, or a different interest structure needs separate consumer-credit review. Complete the fixed rate and payment schedule before signing.

Date: [__/__/____]
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 8%)
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 until the obligation is paid. If no funds are advanced, Borrower owes nothing under this Note. Interest begins on the advance date. 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. Interest does not compound. 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 here.

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. Each installment is limited to 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. Colorado 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: [________________________________]

Colorado law reference

Colo. Rev. Stat. § 5-1-301(15)(a) defines a consumer loan, in relevant part, by a lender regularly engaged in making loans; this form is for a one-off private transaction. Sections 5-12-101 and 5-12-103(1) supply the general interest framework; this form chooses a written fixed rate of 0–8% with no added charges, without treating 8% as a legal maximum. Section 13-80-103.5(1)(a) gives six years after accrual to sue to recover a liquidated or determinable debt. Section 5-12-102(4) governs interest on a resulting Colorado judgment; when a written instrument provides a specified rate until the obligation is paid, subsection (4)(a) uses that rate.