What is a Promissory Note?
A promissory note is like a contract, but a simplified one with some legal terms on it. It is a repay a debt document and it covers on how the repayments are done and the interest rate, if there is one. An acceleration clause is also involved and included. This is when repayment terms are increased so that the whole repayment maybe overdue.
Most people will use car or automobile promissory notes.
Some promissory notes are secured and some are not, secured promissory notes are backed by things like a car or an estate, whereas an unsecured promissory note is considered as an informed case. It’s like people loaning each other money but not under legal terms.
It is however best for a payee of an unsecured note not to loan more money than she or he is ready and willing to lose. It is however termed insecure because there is no security in the loan. There is no closure, anything can happen expectedly and unexpectedly.
One has to know the usury laws. It is very important to know the laws of your state, any interest rates that are not according to the usury laws are considered as criminal penalties.
The maker takes care of the promissory notes. Individual to individual promissory note has a simplified flavor and agreement between the two parties. Company to individual not is the difficult one; promissory notes are not open to the public but are sold to some buyers and then go home. Promissory notes are quite useful, valuable and a well-traveled debt.
For more information click here. For a basic Promissory Note template click here
master promissory note form |
Loan Promissory Note