Promissory Note Template

This Promissory Note (the “Note”) is made on [Date] by [Borrower Name] (“Borrower”) in favor of [Lender Name] (“Lender”).

1. Principal and Interest

Borrower promises to pay [Principal Amount] plus interest at [Interest Rate]% per year.

2. Repayment Schedule

Payments will be made [Payment Schedule] beginning [Start Date] and ending [Maturity Date]. Any remaining balance is due on the maturity date.

3. Late Fees

Payments received more than [Grace Period] days late incur a late fee of [Late Fee].

4. Prepayment

Borrower may prepay without penalty unless otherwise stated.

5. Default

If Borrower defaults, the entire balance becomes due and payable at Lender’s option, and Lender may recover collection costs as permitted by law.

6. Governing Law

This Note is governed by the laws of [Governing Law Jurisdiction].

7. Severability

If any provision of this Note is held to be invalid, illegal, or unenforceable, the remaining provisions will continue in full force and effect. The Parties will negotiate in good faith to replace any invalid provision with a valid provision that achieves the original intent.

8. Entire Agreement

This Note constitutes the entire understanding between the Parties and supersedes all prior negotiations, understandings, and agreements. No representations or statements not contained in this Note will be binding.

9. Amendment

This Note may only be amended or modified by a written document signed by both Parties.

10. Waiver

No waiver of any provision of this Note will be deemed or will constitute a waiver of any other provision, nor will any waiver constitute a continuing waiver unless otherwise expressly stated.

11. Assignment

Lender may assign this Note. Borrower may not assign or delegate obligations without Lender’s prior written consent.