Secured Simple Promissory Note
Secured Simple Promissory Note
Borrower:
John Alexander Smith
123 Maple Street, Springfield, IL 62704
Lender:
[Your Name]
456 Oak Avenue, Springfield, IL 62704
1. Date of Issuance
This Promissory Note (“Note”) is made and entered into on this 15th day of March, 2060.
2. Principal Amount
The Borrower hereby unconditionally promises to pay the Lender the principal sum of Twenty Thousand Dollars ($20,000), which is the total amount loaned to the Borrower under this Note.
3. Interest Rate
The unpaid principal balance shall accrue interest at a fixed rate of 5% per annum. Interest shall be calculated on a 365-day year basis and will be compounded monthly.
4. Payment Terms
The Borrower agrees to make monthly payments in the amount of $400 on the 15th day of each month, commencing on April 15, 2060, until the entire principal amount and any accrued interest are paid in full. Payments shall be made via bank transfer to the Lender’s designated bank account or through any other mutually agreed-upon method.
5. Maturity Date
The total outstanding principal balance, along with any accrued but unpaid interest, shall be due and payable in full on or before the 15th day of March, 2065 (the “Maturity Date”). The Borrower acknowledges that timely payment is essential to maintaining good standing under this agreement.
6 Security
This Promissory Note is secured by a 2020 Honda Accord, with Vehicle Identification Number (VIN): 1HGCV1F45LA123456. The Borrower grants the Lender a security interest in the vehicle described above. In the event of default, the Lender is entitled to take possession of the collateral to satisfy the outstanding debt, in accordance with applicable laws.
7. Late Payments
If any payment due under this Note is not received by the Lender within 10 days of its due date, the Borrower agrees to pay a late fee of $50. In addition, interest will continue to accrue on the overdue amount until payment is made in full, further compounding the Borrower's obligations.
8. Prepayment
The Borrower may prepay this Note, in whole or in part, at any time without incurring a penalty. Any prepayment shall first be applied to accrued interest, with the remainder applied to the principal amount outstanding, thereby reducing the total debt.
9. Governing Law
This Note shall be governed by, and construed in accordance with, the laws of the State of Illinois, without regard to its conflict of law principles. Any disputes arising under this Note shall be resolved in the courts of Sangamon County, Illinois.
10. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Promissory Note as of the date first above written, intending to be legally bound.
Borrower's Signature
John Alexander Smith
Borrower
Lender's Signature
[Your Name]
Lender
