Promissory Note Long Form. Looking for a promissory note that covers all of the ins and outs of your financial agreement with your payee?
If you’re not comfortable with a brief letter that only covers the basics…if you need something more detailed…this is the letter to use!!
Trying to put together this letter from the beginning could take quite some time, so don’t!
This letter should include just about everything you need. Just fill in your specifics and you should be all set!
FOR VALUE RECEIVED, the undersigned hereby jointly and severally promise to pay to the order of _, the sum of _ [$_] Dollars, together with interest thereon at the rate of _% per annum on the unpaid balance. Said sum shall be paid in the manner following: [Describe terms]
All payments shall be first applied to interest and the balance to principal. This note may be prepaid, at any time, in whole or part, without penalty.
This note shall at the option of any holder hereof be immediately due and payable upon the occurrence of any of the following:
1. Failure to make any payment due hereunder within _ days
of its due date.
2. Breach of any condition of any security interest,
mortgage, pledge agreement or guaranty granted as
collateral security for this note.
3. Breach of any condition of any security agreement or
mortgage, if any, having a priority over any security
agreement or mortgage on collateral granted, in whole
or in part, as collateral security for this note.
4. Upon the death, dissolution or liquidation of any of
the undersigned, or any endorser, guarantor or surety
5. Upon the filing by any of the undersigned of an
assignment for the benefit of creditors, bankruptcy,
or for relief under any provisions of the Bankruptcy
Code; or by suffering an involuntary petition in
bankruptcy or receivership not vacated within thirty
In the event this note shall be in default, and placed with an attorney for collection, then the undersigned agree to pay all reasonable attorney fees and costs of collection. Payments not made within five days of due date shall be subject to a late charge of _% of said payment. All payments hereunder shall be made to such address as may from time to time be designated by any holder hereof.
The undersigned and all other parties to this note, whether as endorsers, guarantors or sureties, agree to remain fully bound hereunder until this note shall be fully paid and waive demand, presentment and protest and all notices thereto and further agree to remain bound, notwithstanding any extension, modification, waiver, or other indulgence by any holder or upon the discharge or release of any obligor hereunder or to this note, or upon the exchange, substitution, or release of any collateral granted as security for this note. No modification or indulgence by any holder hereof shall be binding unless in writing; and any indulgence on any one occasion. Any modification or change of terms, hereunder granted by any holder hereof, shall be valid and binding upon each of the undersigned, notwithstanding the acknowledgement of any of the undersigned, and each of the undersigned does hereby irrevocably grant to each others a power of attorney to enter into any such modification on their behalf. The rights of any holder hereof shall be cumulative and not necessarily successive. This note shall take effect as a sealed instrument and shall be construed, governed and enforced in accordance with the laws of _.