Free Promissory Note With On Demand Payments
Promissory Notes with On Demand Payments are used when a borrower agrees to repay a loan whenever the borrower demands repayment. This note sets out the amount of the loan, interest rate and the obligations of both borrower and lender.
Disclaimer:This was not drafted by an attorney & should not be used as a legal document.
With On Demand Payments
$ _________ (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 of _____________ dollars payable upon Payee’s demand.
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. Principal. The total principal amount for the sale of the above mentioned property is $__________, (“Principal”).
3. 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 ____%.
4. Payment Term. Payment shall be made in the amount of $_____ on the ___ day per month upon demand. Maker shall continue to make monthly payments until all principal, interests and penalties (if any) has been satisfactory paid in full by Payee.
5. 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.
6. Prepayment. Maker shall have the option to prepay this Note, in full or in part, at any time without penalty.
The Undersigned hereby warrants his/hers full authority to enter into this Promissory Note.
Signed at _____________________________ on this ____ day of _____________, 20__.