Promissory Note (Long Form)
A promissory note is a contract designed to spell out the terms when one party agrees to loan money to another. Call it a legally binding I.O.U.
If you are lending or borrowing money, a promissory note can spell out the important terms of the agreement. Consider the repayment terms, interest rate (if any), late payment penalties, and more. Choose from the following professional digital forms. A free boilerplate form is also provided for reference.
These digital forms, provided by Nolo, are legally valid in your state, customizable to suit your needs, professionally written, and regularly updated by expert attorneys. Use these if you need to create a legally enforceable contract.
Free Basic Form Template
The form below is a very basic one, using boilerplate language, and is intended for educational purposes only. It has not been vetted by an expert, or updated. It may not be legally valid.
In consideration of value received, the undersigned , "Borrowers", do hereby jointly and severally promise to pay to ___________________________, "Lender", the amount of $___________________, upon which interest will accrue at ___________ percent per ________________. Borrowers agree to pay in conformity with the following terms:
Such payments shall be first applied to interest and then to the principal. This Note may be paid in full at any time without penalty charges. Lender reserves the right to demand payment in full or in part, together with interest accrued, at any time and for any reason as Lender deems a breach of this contract.
In the event this Note shall be in default, and collection proceedings are instituted, the Borrowers agree to pay all reasonable attorney fees and costs of collection. Payments not made within ______ days of due date shall be subject to a late charge of $__________________.
The undersigned and all other parties to this Note, whether as endorsers, guarantors or sureties waive demand, presentment and protest and all notices thereto and further agree to remain bound, notwithstanding any extension, modification, waiver, or other indulgence by any holder or upon the discharge or release of any obligor hereunder or to this Note, or upon the exchange, substitution, or release of any collateral granted as security for this Note.