Free Promissory Note With Set Term of Repayment
Promissory Notes with a Set Term of Repayment are used when a lender loans money based on a set repayment schedule. This promissory note sets out the amount of the payments, the term of the loan and the interest rate. It also sets forth remedies which may be taken in the event of default.
Disclaimer:This was not drafted by an attorney & should not be used as a legal document.
With Set Term of Repayment
$ _________ (Amount) _________ ____, 20__ (Date)
FOR VALUE RECEIVED, the undersigned ______________, (the “Maker”) hereby promises to pay to the order of ______________________ (the “Payee”) at _________________ (Payee’s Address) the whole principal amount of _____________ dollars payable upon the dates set forth in the Repayment Schedule below.
The Maker acknowledges that he/she has full knowledge of the principal amount as well as the terms and conditions set forth in this note.
1. Currency. All payments of principal, interest and penalties (if any) shall be collected in funds in lawful currency of the United States of America.
2. Interest Rate. Interests will be charged on uncured Principal until such Principal has been paid in full. Maker shall pay interest at a yearly rate of ____%.
3. Payment Term. Payment shall be made in the amount of $_____ per month as specified in the Repayment Schedule. Maker shall continue to make monthly payments until all principal, interests and penalties (if any) has been satisfactory paid in full in accordance with the Repayment Schedule.
4. Application of Payments. All payments on this Note shall be applied first to the payment of any costs, fees or other charges incurred in connection with the indebtedness evidenced hereby, next to the payment of accrued interest and then to the reduction of the principal balance.
The Undersigned hereby warrants his/hers full authority to enter into this Promissory Note.
Signed at _____________________________ on this ____ day of _____________, 20__.