Promissory Note with Variable Interest Rate
Promissory Note with Variable Interest Rate
Date: July 15, 2060
Location: Pleasantville, CA 90210
FOR VALUE RECEIVED, the undersigned, John D. Harrison, an individual residing at 123 Maple Street, Pleasantville, CA 90210 ("Borrower"), hereby promises to pay to the order of [Your Company Name], a company organized and existing under the laws of the State of California, with its principal place of business located at 456 Oak Avenue, Greenfield, CA 90320 ("Lender"), the principal sum of Five Hundred Thousand U.S. Dollars ($500,000), together with interest accrued thereon at the rate set forth below.
1. Principal Amount
The total principal amount of this Note is $500,000 (Five Hundred Thousand Dollars).
2. Interest Rate
The Borrower agrees to pay interest on the unpaid principal balance at a variable interest rate. The interest rate shall be determined based on the prime rate as published by the Federal Reserve Bank, plus an additional 3% (three percent) per annum. The interest rate will be adjusted annually on the anniversary date of this Note, based on the then-current prime rate.
In the event the prime rate decreases, the Lender has the discretion to adjust the interest rate accordingly, but the interest rate will never fall below 4.5% per annum.
3. Payment Terms
a. Repayment Schedule: The Borrower agrees to make monthly payments of $6,500, which includes both principal and interest, commencing on August 15, 2060, and continuing until the entire balance of the principal and accrued interest is paid in full.
b. Final Payment: If not sooner paid, the remaining unpaid principal, together with any unpaid accrued interest, shall be due and payable on or before July 15, 2070 ("Maturity Date").
c. Early Payment: The Borrower may prepay this Note in whole or in part without penalty at any time.
4. Late Payments
If any payment is not received within 10 days of its due date, the Borrower will incur a late fee of $150.00. Additionally, any late payment will bear interest at a rate of 5% per annum above the regular interest rate, compounded monthly, from the date due until the date payment is received.
5. Collateral
This Note is secured by the Borrower’s property located at 123 Maple Street, Pleasantville, CA 90210. In the event of default, the Lender shall have a lien on the property and may take action to foreclose the lien to satisfy the outstanding debt under this Note.
6. Default
If the Borrower fails to make any payment when due, or if the Borrower breaches any other term or condition of this Note, the entire outstanding principal amount and accrued interest shall become immediately due and payable at the Lender’s option. The Lender reserves the right to initiate legal proceedings or foreclosure to recover the unpaid amounts.
7. Assignment
The Borrower may not assign or transfer this Note, or any obligation hereunder, without the prior written consent of the Lender. The Lender may assign its interest in this Note to any third party without the Borrower’s consent.
8. Governing Law
This Note shall be governed by, and construed following, the laws of the State of California, without giving effect to conflict of laws principles.
9. Notices
Any notice required or permitted under this Note shall be in writing and shall be deemed given when delivered in person, by certified mail, return receipt requested, or via email with confirmation, to the addresses provided below:
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Borrower: John D. Harrison, 123 Maple Street, Pleasantville, CA 90210
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Lender: Greenfield Investment LLC, 456 Oak Avenue, Greenfield, CA 90320
10. Miscellaneous
a. Severability: If any provision of this Note is found to be unenforceable, the remainder of this Note shall continue in full force and effect.
b. Amendments: This Note may not be modified, amended, or waived except by a written agreement signed by both parties.
c. Waiver: No waiver of any term or condition of this Note shall be effective unless it is in writing and signed by the party to be charged.
IN WITNESS WHEREOF, the Borrower has executed this Promissory Note as of the day and year first above written.
Borrower:
John D. Harrison
Date: July 15, 2060
Lender:
[Your Company Name]
Date: July 15, 2060
