The Promissory Note is simple to use, easy to understand, and is a great way to insure repayment of unsecured loans.

Promissory Notes are written promises to repay money to someone.  The primary function of this promissory note is to document the amount of a debt and the terms under which it will be repaid, including the interest rate (if any).  A promissory note is typically signed when money is borrowed or something is bought on credit.  Here are several important reasons why promissory notes should be put in writing

•           You are assured that the borrower and lender have agreed to the same terms, including the repayment schedule and interest rate.

•           You specify exactly what those terms are.

•           Both parties have a written document to refresh their memories if need be.

This note is for unsecured loans—meaning that the borrower does not pledge any property, such as a car, as collateral to guarantee repayment.  This means if the borrower doesn’t repay the loan, the lender must sue in court to get a judgment, which the makes the lender eligible to collect by use of wage garnishment or property attachments.  You can add a security provision to your note, which gives the lender the right to force the sale of personal property pledged as collateral if the borrower doesn’t repay.  You will need an actual security agreement when property is pledged.

The promissory note in this download is easy to use—simply follow the instructions included.  Fill out the form directly on your computer using the PDF file or the RTF file included in this purchase.