Installment Loan or Note
$
______________ (Loan or Note) __________
(Date)
For
value received, the undersigned _____________________________________
(“Borrower”),
_________________________________________ (Address), promises to pay to the
order of ____________________________________("Lender”), the face value of
the loan or note of $ _____________ at a monthly interest rate of __% or annual
interest rate of __%, in monthly Installments as described further below, to a
place designated by Lender, which may from time to time change per the written
notice of Lender to Borrower, with the initial address being
___________________________.
Until
the Loan or Note is due in full, for whatever reason, the unpaid principal and
accrued interest shall be payable in monthly installments (“Installments”),
payable on the first of each month (“Installment Due Date”) of $ __________,
and continuing until ______________ (“Due Date”), at which time the remaining
unpaid principal, interest, and other costs, if any, shall be due in full
unless this Note was called earlier per the rights of the Lender under this
Agreement.
Any
payments on this Note shall first be applied against legal or collection costs
until paid in full, as then may be due, and then against outstanding interest
until paid in full, as then may be due, and finally applied to the outstanding
principal balance.
1.
Prepayment. The Borrower
reserves the right to prepay this Note (in whole or in part) prior to the Due
Date with no prepayment penalty.
2.
Collection Costs, Attorney’s Fees, and Late Charge. If any payment obligation under this Note is
not paid when due, the Borrower promises to pay all costs of collection,
including reasonable attorney fees, whether or not a lawsuit is commenced as
part of the collection process, without protest of any kind, legal or
otherwise. If the note remains unpaid
for an additional 30 days after Lender gives demand, the Borrower shall be
required to pay a 5% late charge based on the Installment amount. Each late Installment shall make another 5%
due.
3.
Default Events. If any of
the following events of default occur, this Note and any other obligations of
the Borrower to the Lender, shall become due immediately, without demand or
notice:
1) failure of the Borrower to pay the monthly installment
payment on or before the Installment Due Date;
2) death of the Borrower
or Lender;
3) filing of bankruptcy
proceedings involving the Borrower as a Debtor;
4) application for the
appointment of a receiver for the Borrower;
5) making of a general
assignment for the benefit of the Borrower's creditors;
6) insolvency of the Borrower;
7) a misrepresentation by the Borrower to the Lender for the
purpose of obtaining or
extending credit.
4.
Borrower Waivers. Borrower
waives presentment for payment, protest, and notice of protest and nonpayment
of this Note.
5.
Additional Lender Rights.
No renewal or extension of this Note, delay in enforcing any right of
the Lender under this Note, or assignment by Lender of this Note shall affect
the liability or the obligations of the Borrower. All rights of the Lender under this Note are
cumulative and may be exercised concurrently or consecutively at the Lender's
option.
6. Notices.
Any notice required by this Agreement or given in connection
with it, shall be in writing and shall be given to the appropriate party by
personal delivery or a recognized over night delivery service such as FedEx.
If
to the Borrower:
______________________________________________________.
If
to the Lender: ________________________________________________________.
7. No Waiver.
The
waiver or failure of either party to exercise in any respect any right provided
in this agreement shall not be deemed a waiver of any other right or remedy to
which the party may be entitled.
8. Entirety
of Agreement.
The terms and conditions set forth herein constitute the
entire agreement between the parties and supersede any communications or
previous agreements with respect to the subject matter of this Agreement. There are no written or oral understandings
directly or indirectly related to this Agreement that are not set forth
herein. No change can be made to this
Agreement other than in writing and signed by both parties.
9. Governing Law.
This
Agreement shall be construed and enforced according to the laws of the State of
____________________ and any dispute under this Agreement must be brought in
this venue and no other.
10. Headings in this Agreement
The
headings in this Agreement are for convenience only, confirm no rights or
obligations in either party, and do not alter any terms of this Agreement.
11. Severability.
If
any term of this Agreement is held by a court of competent jurisdiction to be
invalid or unenforceable, then this Agreement, including all of the remaining
terms, will remain in full force and effect as if such invalid or unenforceable
term had never been included.
In
Witness whereof, the parties have executed this Agreement as of the date
first written above.
_________________________ _______________________
Borrower Lender
Installment Loan or Note
Review List
This review list is provided to inform you about the
document in question and assist you in its preparation. The tough language involved in this document
is required to improve your chances of collecting on a defaulted note or
loan. The strict terms are required to
improve the odds of ultimate collection.
This
is a simple straightforward document that only requires the signatures of the
party. If you are concerned about any later dispute, and being on the safe side
is always prudent, we recommend you obtain a notary verification and signature
as well.
Make
multiple copies and distribute them to the parties. You should keep your copies with your
corporate or personal records.
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