PROMISSORY NOTE
Date: [Insert Date, e.g., June 22, 2025]
Principal Amount: $[Insert Amount, e.g., 10,000.00]
Borrower: [Insert Borrower Name and Address, e.g., John Doe, 123 Main St., San
Francisco, CA 94105]
Lender: [Insert Lender Name and Address, e.g., Jane Smith, 456 Oak Ave., San
Francisco, CA 94105]
FOR VALUE RECEIVED, the undersigned Borrower promises to pay to the order of the
Lender the principal amount of $[Insert Amount] together with interest at the rate
of [Insert Interest Rate, e.g., 5.00%] per annum, calculated annually and not in
advance, on the terms set forth below:
1. **Repayment Terms**
The principal and accrued interest shall be repaid in [Insert Payment Schedule,
e.g., monthly installments of $500.00] starting on [Insert Start Date, e.g., July
22, 2025] and continuing until the balance is paid in full by [Insert Final Due
Date, e.g., June 22, 2027]. Payments shall be applied first to accrued interest and
then to principal.
2. **Method of Payment**
Payments shall be made via [Insert Payment Method, e.g., bank transfer to
Lender’s account at [Bank Name], Account #123456789] or as otherwise agreed in
writing. All payments shall be in U.S. dollars.
3. **Prepayment**
The Borrower may prepay the principal or any portion thereof without penalty.
Prepayments shall be applied first to accrued interest and then to principal.
4. **Default**
If the Borrower fails to make any payment within [Insert Grace Period, e.g., 15
days] of its due date, or upon bankruptcy, insolvency, or breach of this Note, the
entire balance, including principal and interest, shall become immediately due at
the Lender’s option. The Borrower shall be liable for all collection costs,
including reasonable attorney’s fees.
5. **Interest on Default**
Upon default, the unpaid balance shall accrue interest at [Insert Default Rate,
e.g., 8.00%] per annum until paid in full, subject to applicable usury laws.
6. **Governing Law**
This Note shall be governed by and construed in accordance with the laws of the
State of [Insert State, e.g., California], without regard to conflict of law
principles.
7. **Severability**
If any provision of this Note is deemed invalid or unenforceable, the remaining
provisions shall remain in full force and effect.
8. **Waiver**
No delay or omission by the Lender in exercising any right shall operate as a
waiver of such right. All waivers must be in writing.
9. **Notices**
All notices shall be sent to the addresses above via certified mail or email at
[Insert Borrower Email] and [Insert Lender Email].
IN WITNESS WHEREOF, the Borrower has executed this Promissory Note as of the date
first written above.
Borrower:
_______________________________
[Insert Borrower Name]
Date: [Insert Date]
Lender Acknowledgment:
_______________________________
[Insert Lender Name]
Date: [Insert Date]