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Promissory Note Template

FieldValue
TypeSkill Resource
Source~/.copilot/skills/legal/templates/promissory-note-template.md
DescriptionNot specified

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Promissory Note Template

PROMISSORY NOTE

$[Principal Amount]

[City], [State] — [Date]


Parties

Maker: [Full Legal Name], residing at [Address] (“Maker”).

Payee: [Full Legal Name], residing at [Address] (“Payee”).


Promise to Pay

For value received, Maker promises to pay to the order of Payee the principal sum of [Amountwrittenoutinwords]Dollars( Amount written out in words] Dollars ([amount]), together with interest as set forth below.


Interest

Simple interest shall accrue on the unpaid principal balance at the rate of [_] percent ([_]%) per annum from the date of this Note until paid in full.

Alternative — no interest: This Note bears no interest if the parties so agree; delete this section and state “This Note is non-interest-bearing.”


Repayment

Option A — Installment Payments

Maker shall pay $[amount] per [week / month], beginning on [first payment date], with a final payment of all remaining principal and accrued interest due on [maturity date].

Option B — Lump-Sum Payment

The entire principal balance plus accrued interest shall be due and payable in full on [maturity date].

Delete the option not used.


Place of Payment

All payments shall be made to Payee at [address or account information], or at such other address as Payee may designate in writing.


Prepayment

Maker may prepay this Note in whole or in part at any time without penalty. Prepayments shall be applied first to accrued interest and then to principal.


Default

Maker shall be in default if:

  1. Maker fails to make any payment within [___] days after it is due; or
  2. Maker becomes insolvent, makes a general assignment for the benefit of creditors, or is the subject of a voluntary or involuntary bankruptcy proceeding.

Upon default, Payee may, at Payee’s option and without further notice, declare the entire unpaid principal balance and all accrued interest immediately due and payable (acceleration).


Costs of Collection

If this Note is placed with an attorney for collection following default, Maker agrees to pay Payee’s reasonable attorney’s fees and costs of collection in addition to the unpaid balance.


Waivers

Maker waives presentment, demand, notice of dishonor, protest, and all other notices to which Maker might otherwise be entitled.


Governing Law

This Note shall be governed by the laws of the Commonwealth of Virginia [or insert applicable state], without regard to conflict-of-law principles.


Entire Agreement

This Note constitutes the entire agreement of the parties with respect to the loan described herein and may not be amended except in a signed writing.


Signature

Only the Maker signs a promissory note. The Payee accepts by holding the Note.


Maker’s Signature: _________________________ Date: ___________

Printed Name: _____________________________

Address: _________________________________


This template is a starting point only. Consult an attorney to confirm it meets applicable state requirements, usury limits, and any recording or notarization obligations.