What Exactly Is a Promissory Note?

by: dmf32835 Total views: 21 Word Count: 390
View PDF | Print View

Related Discussions Online:

The OIC & the UN: Islamophobia and "defamation of religion"
Posted by bokashiman via FriendFeed

Picasa Web Albums **FILE** U.S. Attorney General Alberto Gonzales, left, and Vice President Dick Cheney are shown in this 2006 file photo at the White House. Cheney and Gonzales have been indicted on state charges involving federal prisons in a South Texas county that has been a source of bizarre legal and political battles under the outgoing prosecutor. (AP Photo/Pablo Martinez Monsivais, file)
Posted by soul1383 via Picasa Web Albums

Harsh Reality Behind the Gizmodo/Reader Symbiosis Revealed by Dilbert [Truth]
Posted by erikjheels via Google Reader

Being Discussed on FriendFeed

Open Question: I asked my old manager to be a reference on my grad school app. His boss said no. Can she do this?
The bank branch manager (my reference) called me just now and said that his boss won't allow him to be my reference. Is that legal? I didn't ask his boss, I asked him. I really feel like calling her and yelling at her. read more...

Open Question: should i sue my apartment!?
this is complicated.... my apartment is attempting to take legal action against me for claiming i didnt pay them rent. I have a contacted them in person with my bank statements showing what i paid,bills and late notices showing what ive paid and i continue to be harrassed with notices..neither late notice breaks down the balance the computer says i have(which was down when we first starting having these problems in oct).. my rent doesnt not even equal to the balance they say i owe..my rent is 710.00 this includes base rent 710, -35.00 for student discount,33.00 for trash and sewer for a total of 708 monthly..i usually pay 711 a month( so i should have a credit every month of a few dollars), ...as of oct 1st according to a late notice saying my balance on the acct was 32.30 from a water and trash fee unpaid(this is the only type of receipt i have from them showing what i owe...That month water/trash/sewer increased from 10 to 33.00 without notice... so i paid what i owed by money order to avoid problems...i signed a 14 month lease moving in aug 30 paid pro rated rent(sept 07 was free) and the last day of my lease was 10/29/2008(making oct last month free)..the apartment claims they gave me Sept free but i signed a 14 month lease(and their bill states i got oct for free)...I paid sept rent and oct was the month that i had free rent according to the lease agreement so i didnt pay in oct..the water fee was not included in the free rent in oct so when i got the late notice i talked to management and went ahead and paid the 32.30 on the acct with a 32.30 money order.management stated they couldnt find that payment made by money order(which i didnt get a receipt for and personally handed them the money order)..i never got receipts from the office ever for any payments)...in october i signed a new lease for 8 months where my 1st months rent was 150.00 off..in nov i got the monthly bill that stated i owed full rent plus the 32.30 and one time concession.. i did not get that discount(150.00)off...im constantly charged over and over for concession on my monthly bill in which the office has admitted has been messed up for quite some time... so i paid what i was told by the young lady in the office when i signed a new leasing agreement which was 710 base rent - 35.00 for student discount + 33.00 for trash/water/sewer - 150.00 = 558.00(i paid 600.00 with a money order in nov.meaning i would have a credit of 42.00 on the acct)...In october their computers were down and they had no way of helping or attempting to review with me what has been paid on the acct and whats been cashed...i contiune to recieve harrassing late notices and neither notices shows what i owe just you have a balance on the accts. and we will send your file to an attorney...the manager has promised to sit down and look at her books but she just sticks late notices on my door instead. i referred a couple to live in the apartment and i have not recieved the referral fee of 400.00..if anything they owe me money (42.00 from nov rent that i over paid and the referral fee of 400.00 that i never got! i would love to pursue legal actions but i dont have the money all up front...so i need to know what my options are... read more...

A promissory note is a legal agreement that is a written promise to repay a debt. It will include how and when the debt will be repaid. It can be through a series of payments, upon demand, or another way both parties can agree upon.

A promissory note will require the full names of the parties, the amount of the obligation, and the debtor's obligation(s). The debtor's obligation includes the terms of repayment, and an interest rate, if any. It can also include what is called an 'acceleration clause'. An acceleration clause will make the entire amount of the note due if just a single payment is late.

When creating a promissory note one should always know their state's 'usury' laws. These laws define the maximum interest rate some one can charge. Most state's charge fees and fines for people who violate usury laws. Other states carry criminal penalties for violators.

Also, when you’re creating a promissory note form you need to know a few legal terms. One legal term you want know is 'Promisor'. A promisor is the person who promises to repay the debt or other obligation secured by the note. Another term is 'Promisee'. A promisee is a person who is to receive payment on the debt or obligation secured by the note. Another term is 'Obligor'. An obligor is another word for 'promisor'. Yet another term you need to know is Obligee. An obligee is another word for 'promisee'. The final term you need to know is 'Consideration'. Consideration is a legal term for the value received by both parties in return for entering into the contract. So the 'mutual consideration' would be that the promisor receives the loan, and the promisee receives repayment as specified in the note.

Once you've gotten those legal terms down then it should be quite easy to create your own promissory note. You can pay a print fee at your local courthouse for a copy, but for people in my state and probably most state's, it's much cheaper to just download a copy online.

Disclaimer: This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as legal advice or used to make legal decisions. Consult an attorney in your area if you’re seeking legal advice.

About the Author

This article has been brought to you by Legal Forms Bank .Biz - legal forms and products databank. Download a copy of your state's promissory note forms, auto bill of sale forms, and other forms through our website instantly.