Promissory note [Long form] | Letters for all Occasions
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Promissory note [Long form]

For value received, the undersigned hereby jointly and severally promise to pay to the order of _____________, the sum of _____________ (amount), together with interest thereon at the rate of _______ % per annum on the unpaid balance. Said sum shall be paid in the manner following: _________________________________________________________ (Describe terms)

All payments shall be first applied to interest and the balance to principal.This note may be prepaid, at any time, in whole or part, without penalty.This note shall at the option of any holder hereof be immediately due and payable upon the occurrence of any of the following:

1. Failure to make any payment due hereunder within _________ days of its due date.

2. Breach of any condition of any security interest, mortgage, pledge agreement or guaranty granted as collateral security for this note.

3. Breach of any condition of any security agreement or mortgage, if any, having a priority over any security agreement or mortgage on collateral granted, in whole or in part, as collateral security for this note.

4. Upon the death, dissolution or liquidation of any of the undersigned, or any endorser, guarantor or surety hereto.

5. Upon the filing by any of the undersigned of an assignment for the benefit of creditors, bankruptcy, or for relief under any provisions of the Bankruptcy Code; or by suffering an involuntary petition in bankruptcy or receivership not vacated within thirty days.In the event this note shall be in default, and placed with an attorney for collection, then the undersigned agree to pay all reasonable attorney fees and costs of collection.

Payments not made within five days of due date shall be subject to a late charge of ____% of said payment. All payments hereunder shall be made to such address as may from time to time be designated by any holder hereof.

The undersigned and all other parties to this note, whether as endorsers, guarantors or sureties, agree to remain fully bound hereunder until this note shall be fully paid and 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 obliger hereunder or to this note, or upon the exchange, substitution, or release of any collateral granted as security for this note. No modification or indulgence by any holder hereof shall be binding unless in writing; and any indulgence on any one occasion. Any modification or change of terms, hereunder granted by any holder hereof, shall be valid and binding upon each of the undersigned, notwithstanding the acknowledgment of any of the undersigned, and each of the undersigned does hereby irrevocably grant to each others a power of attorney to enter into any such modification on their behalf. The rights of any holder hereof shall be cumulative and not necessarily successive. This note shall take effect as a sealed instrument and shall be construed, governed and enforced in accordance with the laws of ____________.



One Comment

  1. Jason Elder
    Posted August 22, 2008 at 5:34 am | Permalink

    Excellent Blog. I’ve been reading along and just wanted to say hi. I will be reading more of your posts in the future.

    - Jason.

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