Promissory Note - Simple - Hawaii

SIMPLE PROMISSORY NOTE — HAWAII

Before you use this: This is one unsecured private loan of no more than $250,000 to an individual for personal or household use. The lender is an occasional private lender, not a financial institution or a lender offering a regulated lending program. It uses a written fixed simple-interest rate of 0–12% a year and no added lending charges. The lender must not be using this form for a credit card, home business loan, or a different lending program.

Date: [__/__/____]
Lender: [LENDER FULL LEGAL NAME], [ADDRESS]
Borrower: [BORROWER FULL LEGAL NAME], [ADDRESS]
Principal actually advanced: $[AMOUNT] (not more than $250,000)
Advance date: [__/__/____]
Annual simple interest rate: [____]% (0–12%; enter 0 for an interest-free loan)
Payment address or account: [________________________________]

Promise to pay

This note becomes effective only when Lender advances funds to Borrower. Borrower then promises to pay Lender only the principal actually advanced above and interest on unpaid principal at the written annual simple rate. Interest begins on the advance date, uses actual days elapsed, divides the annual rate by 365 for each day in a common year and by 366 for each day in a leap year, and does not compound. This note charges no origination fee, late fee, default interest, collection surcharge, or prepayment penalty. No amount beyond the stated principal is financed as a fee.

Payments

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. All remaining principal and accrued interest are due on [__/__/____] (a date on or after the first installment). Payments apply first to accrued interest, then to principal. Borrower may pay early in whole or part without charge. A partial early payment does not postpone the next due date unless the parties sign a change.

Missed payment

If a payment is more than [____] days late, Lender may give Borrower written notice identifying the missed amount. If Borrower does not pay it within [____] days after receiving that notice, Lender may declare the remaining principal and accrued interest immediately due and pursue lawful collection remedies. Default does not increase the agreed rate or create a new fee.

Other terms

This obligation is unsecured. Hawaii law governs. Notices may be personally delivered or mailed to the addresses above, or to a replacement address supplied in writing. Changes to this note must be written and signed by Borrower and Lender. This note states the entire payment promise for this advance.

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

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

Hawaii law reference

HRS § 478-1 defines consumer credit by borrower, purpose, principal/commitment amount, and dwelling-security conditions. This form limits its single unsecured household loan to $250,000 or less to use that consumer-credit route. HRS § 478-4(a) permits a written simple-interest rate up to 12% per year for a consumer credit transaction other than a credit card agreement, subject to its stated scope. This note uses that rate route and does not add lending charges.