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Free Legal Forms page - Promissory Note
$______(1)___ ____(2)_____, _____(3)_____
FOR VALUE RECEIVED, the undersigned, promise to pay to the order of ___________
(6)______________, (hereinafter referred to as "Payee"; Payee together with any subsequent
holder hereof or any interest herein being hereinafter referred to as "Holder") at___________(7)
______________, or at such other place as the Holder may from time to time designate in
writing, without grace, except as may be otherwise expressly provided for herein, the principal
sum _________(8)____________ ($______), together with interest from the date hereof at a rate
of (9)% per annum on the unpaid principal balance from time to time outstanding in accordance
with the following provisions:
(a) Commencing ______(10)______ ____________(11)________, and on the
_________(12)________ day of each and every month thereafter until _____(13)______,
____________(14)________, the undersigned shall pay to Holder equal installments of ______
(15)_____ ($_______), including principal and accrued interest on the unpaid principal balance.
The entire outstanding principal balance shall be due and payable in full on or before _______
This Note and the instruments securing it are to be governed, interpreted and construed
by, through and under the laws of the State of ______________(18)______. This Note may
be prepaid in whole or in part at any time without penalty or premium. If this Note provides for
installment payments of principal, prepayment of principal payments shall be applied in the
inverse order such installment payments are due, applying first to the last principal installment
This Note is secured by a Mortgage of even date herewith executed by the undersigned
in favor of the Payee herein, which is a lien on certain collateral security as described therein.
In the event that any payment of principal and/or interest is not made within thirty (30)
days that same is due, which event shall constitute an "Event of Default" hereunder, or in the
event of any default under the terms of the Mortgage securing this Note, the undersigned shall
pay, during the period of such default, interest on the unpaid balance of the indebtedness
evidenced by this Note at the highest rate allowed by law.
The Holder shall have the optional right to declare the amount of the total unpaid balance
hereto to be due and forthwith payable in advance of the maturity date of any sum due or
installment, as fixed herein, upon the failure of the undersigned to pay, when due and after thirty
(30) days + that same is due, any of the installments of interest and/or principal, or upon the
occurrence of any event of default or failure to perform in accordance with any of the terms and
conditions in the Mortgage securing this Note or in any other security document executed and/or
delivered in conjunction herewith. Upon exercise of this option by the Holder, the entire unpaid
principal shall bear interest at the highest rate allowed by law. Forbearance to exercise this
option with respect to any failure or breach of the undersigned shall not constitute a waiver of the
rights to any continuing failure or breach or any subsequent failure or breach.
In no event shall the amount of interest due or payments in the nature of interest payable
hereunder exceed the maximum rate of interest allowed by applicable law, as amended from time
to time, and in the event any such payment is paid by the undersigned or received by the Holder,
then such excess sum shall be credited as a payment of principal, unless the undersigned shall
notify the Holder, in writing, that the undersigned elects to have such excess sum returned to it
Time is of the essence hereunder and, in case this Note is collected by law or through an
attorney-at-law, or under advice therefrom, the undersigned agrees to pay all costs of collection
including reasonable attorneys' fees. Reasonable attorneys' fees are defined to include, but not
be limited to, all fees incurred in all matters of collection and enforcement, construction and
interpretation, before, during and after suit, trial, proceedings and appeals. Attorneys' fees shall
also include hourly charges for paralegals, law clerks and other staff members operating under
the supervision of an attorney.
The remedies of the Holder, as provided herein or in the Mortgage, shall be cumulative
and concurrent, and may be pursued singularly, successively or together, at the sole discretion of
the Holder, and may be exercised as often as occasion therefor shall raise. No act of omission or
commission of the Holder, including specifically any failure to exercise any right, remedy or
recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be
affected only through a written document executed by the Holder and then only to the extent
specifically recited therein. A waiver or release with reference to any one event shall not be
construed as continuing, as a bar to, or as a waiver or release of any subsequent right, remedy or
recourse as to a subsequent event.
Any notice to be given or to be served upon any party hereto, in connection with this
Note, must be in writing, and may be given by certified or registered mail and shall be deemed to
have been given and received on the third (3rd) business day after a certified or registered letter
containing such notice, properly address, with postage prepaid, is deposited in the United States
mail; and if given otherwise then by certified or registered mail, it shall be deemed to have been
given when delivered to and received by the party to whom it is addressed. Such notices shall be
given to the parties hereto as set forth in the Mortgage.
All persons or corporations or other entities now or at any time liable, whether primarily or
secondarily, for the payment of the indebtedness hereby evidenced, for themselves, their heirs,
legal representatives, successors and assigns respectively, hereby (a) expressly waive
presentment, demand for payment, notice of dishonor, protest, notice of non-payment or protest,
and diligence in collection except as may be otherwise expressly provided; (b) consent that the
time of all payments or any part thereof may be extended, rearranged, renewed or postponed by
the Holder hereof and further consent that the collateral security or any part thereof may be
released, exchanged, added to or substituted for by Holder hereof, without in anywise modifying,
altering, releasing, affecting or limiting their respective liability or the lien of any security
instrument; (c) agree that the Holder, in order to enforce payment of this Note, shall not be
required first to institute any suit or to exhaust any of its remedies against the undersigned or any
other person or party to become liable hereunder.
If more than one party shall execute this Note, the term "undersigned" as used herein,
shall mean all parties signing this Note and each of them, who shall be jointly and severally
In this Note, whenever the context so requires, the neuter gender includes the feminine
and/or masculine, as the case may be, and the singular number includes the plural.
All references herein to interest at the "maximum rate" shall mean "maximum legal
IN WITNESS WHEREOF, the undersigned has caused this Note to be executed in its
name on the day and year first above written.
The information in this document is designed to provide an outline that you can follow
when formulating business or personal plans. Due to the variances of many local, city, county
and state laws, we recommend that you seek professional legal counseling before entering into
any contract or agreement.