How To Use
The tough language involved in this document is required to improve your chances of collecting on a defaulted note or loan.
The strict terms are required to improve the odds of ultimate collection. This is a simple straightforward document that only requires the signatures of the party. If you are concerned about any later dispute, and being on the safe side is always prudent, we recommend you obtain a notary verification and signature as well.
- Make multiple copies and distribute them to the parties. You should keep your copies with your corporate or personal records.
Installment Loan or Note
$__________ (Loan or Note) ______________ (Date) For value received, the undersigned ________________________ (“Borrower”), _________________________________________ (Address), promises to pay to the order of ___________________________ (“Lender”), the face value of the loan or note of $__________ at a monthly interest rate of ____% or annual interest rate of ____%, in monthly Installments as described further below, to a place designated by Lender, which may from time to time change per the written notice of Lender to Borrower, with the initial address being _____________________________________________________________.
Until the Loan or Note is due in full, for whatever reason, the unpaid principal and accrued interest shall be payable in monthly installments (“Installments”), payable on the first of each month (“Installment Due Date”) of $ __________, and continuing until ______________ (“Due Date”), at which time the remaining unpaid principal, interest, and other costs, if any, shall be due in full unless this Note was called earlier per the rights of the Lender under this Agreement.
Any payments on this Note shall first be applied against legal or collection costs until paid in full, as then may be due, and then against outstanding interest until paid in full, as then may be due, and finally applied to the outstanding principal balance.
The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date with no prepayment penalty.
If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.
In Witness whereof, the parties have executed this Agreement as of the date first written above.