Promissory Note - Simple - District of Columbia

SIMPLE PROMISSORY NOTE — DISTRICT OF COLUMBIA

Before you use this: This form is for one unsecured private loan to an individual for personal or household use. This form uses a fixed written interest rate of 0–6% and no added lending fees. Business lending, secured lending, or a higher rate needs separate legal review of licensing and interest limits.

THIS NOTE IS NOT NEGOTIABLE AND IS NOT AN INSTRUMENT GOVERNED BY D.C. CODE ARTICLE 3.

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 6%)
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 principal 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 [__/__/____] (a date on or after the first installment). 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. District of Columbia 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: [________________________________]

District of Columbia law reference

D.C. Code § 28-3301(a) permits a written interest rate up to 24% for covered instruments, subject to its stated exceptions; § 28-3302(a) supplies 6% when there is no expressed contract. This form selects a written 0–6% rate and no additional charges. Section 26-901(a) imposes a license rule on the business of lending at more than 6% on security; this form is unsecured and limited to private lending. Section 12-301(7) generally sets three years after accrual for a simple contract. Section 28-3302(c) contains a Treasury-linked judgment-interest formula; a resulting judgment controls its own interest.

D.C. Code § 28:3-104(d) permits the conspicuous nonnegotiability statement above, so this note is drafted as a simple contract.