Our sample Installment Promissory Note Form with balloon payment makes provision for a variable residual payment amount to be calculated at the end of the payment term.
You can stipulate the final amount due on your Note, although that may need adjustment if the Borrower's payments are not exactly to schedule.
We also offer a variety of other free loan agreements with different payment options which may be better suited to your requirements such as:
Visit our main Promissory Note Page for links to the above free legal documents and to explore the additional guidelines, information on interest free personal loan agreements and other repayment options before compiling your promissory note.
Important: All our free legal forms are provided for informational purposes only and you use them at your risk. Consult with an attorney to ensure your forms are valid in your jurisdiction.
Full Names ________________________________
(Hereinafter referred to as the Borrower)
Full Names ________________________________
(Hereinafter referred to as the Lender)
Borrower hereby unconditionally promises to pay the Lender the sum of ______________________ (US$________) together with interest accrued at the rate of __________percent (______%) per year on any unpaid balance.
1. Payment Schedule and Terms
1.1 Borrower will pay ____ payments of US$_______ (_____________________US dollars) each on the _____ day of every month, starting on the _______day of _________________20____. A single final balloon payment for the entire outstanding Principal amount, fees and interest accrued must then be paid on or before the ___________day of _____________________20____. All payments shall first be applied to outstanding late fees, then to interest and the balance to the Principal amount.
1.2 Lender shall provide Borrower with a final written statement of monies due prior to the due date of the balloon payment.
1.3 Payment shall be delivered to the above stated address of the Lender or any place or in any other manner as may be designated from time to time in writing by the Lender or holder of this Note or mutually agreed upon in writing.
1.4 The Borrower may prepay this Note in full or in part at any time without premium or penalty. All prepayments shall first be applied to outstanding late fees, then to accrued interest and thereafter to the principal loan amount.
1.5 If payment is not made within ____ days as stipulated in the payment terms the Borrower shall pay an additional late fee in the amount of $______.
1.6 If the Borrower fails to make any payment when due for whatever reason and the Lender provides notice of such failure, the Borrower must effect payment of the amount due within ____ days, failing which the Lender can demand immediate payment of the entire outstanding Principal amount and accrued interest.
1.7 The Borrower waives demand and presentment for payment, notice of non-payment, off-set, protest and notice of protest and agrees to remain fully bound until this Note is paid in full.
2. Additional Fees
In case of default this Note may be turned over for collection and the Borrower shall pay all reasonable legal fees and collection charges in addition to other amounts due.
This is an unsecured Note
This Note is secured by a Security Agreement which will remain in full force and effect until this Note and the Security Agreement are released in writing by the Lender.
4. Transfer, Liability and Binding Effect
4.1 The Lender may transfer this Note to another holder without notice to the Borrower and the Borrower agrees to remain bound to any subsequent holder of this Note under the terms of this Note.
4.2 All Borrowers or Co-signors identified in this Note shall be jointly and severally liable for the repayment of the debt described in this Note and the terms of this Note shall equally be binding upon their successors, legal representatives and assigns.
4.3 The terms of this Note shall accrue to the benefit and be enforceable by the Lender and his/her successors, legal representatives and assigns.
5.1 Where appropriate words signifying one gender shall include the others and words signifying the singular shall include the plural and vice versa.
5.2 No relaxation, indulgence, waiver, release or concession of any terms of this Note by the Lender on one occasion shall be binding unless in writing and if granted shall not constitute an amendment to this agreement or prejudice any of the Lender's rights.
5.3 This Note shall be construed, interpreted and governed in accordance with the laws of the State of _______________ and should any provision of this Note be judged by an appropriate court of law as invalid, it shall not affect any of the remaining provisions whatsoever.
Signed at ______________________ on this ________day of ________________________20____.
Borrower Signature __________________________________
Lender Signature _____________________________
Signed in the presence of:
(1) Witness Name _____________________________
(1) Witness Signature __________________________________
(2) Witness Name _____________________________
(2) Witness Signature __________________________________
Your promissory note form must be witnessed by independent witnesses i.e. the lender must not sign as witness.
If you wish to have your document notarized, you can replace the witness section with the following:
This document was acknowledged before me on this ______day of ____________________20__ by ________________________(Principal's full legal Name)
Signature of Notary Public ______________________
Full legal Name ______________________________
My commission expires ________________________
State of ________________________
County of ______________________
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