Free Promissory Note With Collateral Template

A promissory note or promise to pay is a note that details money borrowed from a lender and the repayment structure the document holds the borrower accountable for paying back the money plus interest if any.

Free promissory note with collateral template. Any modifications of or amendments to the terms herein shall be made in writing by all of the parties hereto. Unsecured promissory note offers no guarantee for the lender to recoup the loaned money. If the collateral is being provided then it needs to be mentioned in the note what sort of collateral will be given such as goods property etc. Note borrower shall pay lender s reasonable costs and attorneys fees. Keep in mind that the value of the collateral needs to be either equal to or more than the loan amount.

The promissory note offers a lot of collateral because the borrower promises to give up a personal property if the loan is not repaid. Promissory notes are negotiable instruments that are saleable and unconditional and are used in business transactions around the world. If the loan cannot be repaid the collateral is forfeited to the lender. It is secured in that it is backed by collateral which may be sold or confiscated in the event of a default. A secured promissory note is a document used so that a party borrowing money known as the borrower agrees to repay a party lending money known as the lender the word secured means that the loan is backed by an asset put up as collateral.

Here is our collection of 17 free promissory note templates that you can use to record a loan transaction officially or unofficially. There are 2 types of promissory notes secured and unsecured. Free promissory note form. These word templates are useful when parties involving in a loan transaction don t know how to document it for later use or reference. Simple real estate promissory note template.

This note shall be governed in accordance with the laws of the state of. Use this document if you want the borrower to agree to give up property like jewelry cars businesses or stocks if they fail to pay back the loan. A secured promissory note is a kind of a document that is signed and intended to acknowledge that some money is owed and is to be paid in future. For official documents please consult to your attorney as well. A secured promissory note is a document that allows a lender to lend money with the added insurance of having assets property to be handed over to them in the chance the borrower defaults.

This note is hence. You can choose to make it either secured or unsecured. This type of note carries less risk to the lender and usually allows the borrower to pay a lesser interest rate.