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Promissory Notes
A Promissory Note is a specific, written promise to repay a loan or debt under specific terms at a stated time and through a specified series of payments, or on demand. A demand Promissory Note is due on demand of the lender. A Promissory Note will:
- Identify the debtor and creditor;
- Specify the dollar amount of the obligation;
- An explanation of the legal consideration for the obligation;
- The terms of repayment;
- The interest rate that will be paid on the note payable;
- An acceleration clause which will make the entire amount of the note due if a payment is missed.
The parties to the Promissory Note are:
- The promisor is the entity or person promising payment;
- The promisee is the entity or person who is entitled to receive payment
One final comment: Any time you agree to accept a primissory note, insist on improving your position with a personal guarantee
© 2011. Michael C. Dennis. All Rights Reserved