Promissory Note (Balloon Payment)
When loaning or borrowing money, use a promissory note as the contract covering the terms of repayment.
If you need to outline how a loan must be repaid, a promissory note is the legal form to use. 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 an 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.
PROMISSORY NOTE - BALLOON PAYMENT
FOR VALUE AND CONSIDERATIONS RECEIVED, I , the undersigned , individually guarantee to pay to the total sum of ______________ which includes an interest payment of _________and the principal payment of __________ per month. Such interest payment has been calculated at the rate of ______ percent per year.
The following terms and conditions shall be valid throughout the life of the Note:
Such payment shall continue for a period of _________ months until _________________and the final payment (Balloon payment) of _____________________shall be due and payable on ____________ . This Note may be prepaid in whole or in part at any time with premium or penalty of percent of the outstanding balance of the loan. All prepayments shall be applied first to interest, then to principal payments in the order of their maturity.
The Borrower agrees to pay all costs and expenses, including but not limited to all reasonable attorney fees, for the collection of this Note in an event of default. All payments shall be made on the day of each month at _________________________, or at such other place as the holder hereof may from time to time designate in writing.
Each maker, surety, guarantor and endorser of this Note waives presentment, notice and protest, and agrees to all extensions, renewals, or releases, discharge or exchange of any other party or collateral without notice.
(FOR GUARANTEE PURPOSES)
I, , shall act as the sole guarantor of the Borrower. In the event of default, I shall personally be held liable for the full payment of the Note.