SAMPLE PROMISSORY NOTE
Free Blank IOU Letter Template

Sample Promissory Note Form

This Sample Promissory Note is a legal form used to document the re-payment agreement between the borrower and the lender, with or without interest.

This document lays out the terms of the loan, sum amount, interest rate (if any), the timetable for repayment, late charges (if any), and the lender and borrower's rights and obligations.

The note also helps protect the borrower against possible future legal or non-legal problems.

The note can also specify that:

  • payment must be made immediately upon lender's demand.
  • borrower can pay back the loan at any time with or without a penalty.
  • borrower can repay the loan on a monthly payment schedule until the full debt amount is payed off.



PROMISSORY NOTE


State of _________________ Principal Amount: $_____________ Date: _____/_____/_____

For Value Received, I, _____________ promise to repay to _______________ (The holder) the total amount of ____________________________________ Dollars ($________,___),

Repayment of this note shall be made in _______ equal installments of $___________ that shall become due and payable on the (first) day of each and every month commencing (one) month from the date of this Promissory Note.

Payments shall first be applied against the interest and the remaining directed against the principal unpaid balance until said Note is paid in full.

An interest of _________ Percent (____%) per annum, which shall commence to run on the first day of the unpaid balance.

The term of this note shall be for ____ months and in no event more than five (5) years.

Payments not made within _____ days of due date shall be subject to a late fee charge of _____% percent of said payment.

I agree to pay all collection costs, including attorney fees and court costs which are incurred for the collection of the amount(s) not paid when due.

This note may be pre-paid at any time, in whole or in part, without penalty.

The laws of the state of ________________ shall govern the interpretation of this note.

By signing below, I manifest my agreement and my acceptance to all the terms and conditions described on this note.

_____________________
signature of borrower

____________________________________
Permanent Address

Subscribed before me ____________________________(Notary Public) on this ______ day of ______________________ of 20_____.




There are some limits to what you can charge in the event of late payment. It's better to check your local and state laws before setting up the late fees for a promissory note.

Promissory notes are considered unsecured obligations. In the event that the borrower declares bankruptcy, the note will only be repaid after all the secured debts have been paid.


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