Free Promissory Note Template — Fill, Download & Sign

PROMISSORY NOTE

Date: [Loan Date (Date Funds Disbursed)]

State: [Governing State]

PRINCIPAL AMOUNT: $[Principal Amount]

FOR VALUE RECEIVED, the undersigned Borrower promises to pay to the order of Lender the principal sum set forth above, together with interest thereon, subject to the terms and conditions of this Promissory Note ("Note").

BORROWER INFORMATION

Name: [Borrower Full Legal Name]

Address: [Borrower Address]

LENDER INFORMATION

Name: [Lender Full Legal Name]

Address: [Lender Address]

1. PRINCIPAL AND INTEREST

Borrower promises to pay to Lender the principal amount of $[Principal Amount], together with interest at the annual rate of [Annual Interest Rate (%)]% per annum, calculated on a simple interest basis.

Interest shall be calculated solely on the outstanding principal balance.

2. REPAYMENT TERMS

Borrower shall repay this Note in installments of $[Installment Payment Amount] each, due [Payment Due Date], beginning on the first payment date following disbursement and continuing until the full principal amount and all accrued interest have been paid in full.

All payments shall be made to Lender at the address stated above or to such other address as Lender may designate in writing.

3. APPLICATION OF PAYMENTS

All payments received shall be applied first to any outstanding late fees or costs, then to accrued and unpaid interest, and finally to the reduction of principal.

4. DEFAULT

The following events constitute a default ("Event of Default") under this Note:

(a) Borrower's failure to make any payment when due;

(b) Borrower becomes insolvent or makes an assignment for the benefit of creditors;

(c) Any proceeding under bankruptcy or insolvency law is commenced by or against Borrower;

Upon the occurrence of an Event of Default, Lender may exercise all rights and remedies available under this Note and applicable law.

PREPAYMENT

Borrower may prepay this Note, in whole or in part, at any time without penalty. All prepayments shall be applied as provided in Section 3 above.

GOVERNING LAW

This Note shall be governed by and construed in accordance with the laws of the State of [Governing State], without regard to conflict of law principles. Borrower consents to jurisdiction and venue in the courts of [Governing State] for any action arising under this Note.

WAIVERS

Borrower waives presentment, demand for payment, protest, and notice of dishonor. No delay or omission on the part of Lender in exercising any right hereunder shall operate as a waiver of such right.

ATTORNEY'S FEES

If this Note is placed in the hands of an attorney for collection, or if suit is brought to collect this Note, Borrower agrees to pay all reasonable attorney's fees and costs of collection incurred by Lender.

SEVERABILITY

If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

IN WITNESS WHEREOF, the Borrower has executed this Promissory Note as of the date first written above.

_________________________________

[Borrower Full Legal Name]

Borrower Signature

Printed Name: [Borrower Full Legal Name]

Date: _______________

_________________________________

[Lender Full Legal Name]

Lender Signature (Acknowledgment)

Printed Name: [Lender Full Legal Name]

Date: _______________