Sample Promissory Note
Sample Promissory Note
Date: January 15, 2062
Principal Amount: $25,000
FOR VALUE RECEIVED, I, [Your Name], residing at 456 Maple Street, Springfield, IL 62701, promise to pay Emily R. Johnson, residing at 789 Oak Avenue, Chicago, IL 60611, the sum of $25,000, with interest at the rate of 5% per annum. The loan will be repaid under the following terms:
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Repayment Terms:
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The loan shall be repaid in 24 equal monthly installments of $1,100 each, beginning on March 1, 2062, and continuing on the 1st day of each month until the loan is fully repaid.
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Payments are due by 5:00 PM on the 1st day of each month.
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Late Fees:
If a payment is not received within 15 days after the due date, a late fee of $50 will be added to the outstanding balance. -
Prepayment:
The borrower may prepay the loan in full or in part at any time without penalty. Any early payment will first be applied to the outstanding interest, and then to the principal balance. -
Default Clause:
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In the event of default (failure to pay for 30 days after the due date), the lender may demand full payment of the remaining loan balance, including any accrued interest and fees.
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The borrower agrees to pay all legal fees and costs associated with the collection of the debt in the event of default.
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Governing Law: This Promissory Note shall be governed by the laws of the state of Illinois.
Borrower
Johnathan A. Smith
Lender
Emily R. Johnson
