Promissory Note Template New Jersey

PROMISSORY NOTE (UNSECURED/SECURED)

Document ID: PN-NJ-2024-001
Effective Date: [Date of Execution]
Version: 1.0
Governing Jurisdiction: State of New Jersey

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LEGAL DISCLAIMER & NOTICE

This document is a template provided for informational purposes only and does not constitute formal legal advice or the formation of an attorney-client relationship. Promissory notes in New Jersey are subject to the Uniform Commercial Code (UCC) Article 3 (Negotiable Instruments) and relevant usury laws (N.J.S.A. 31:1-1 et seq.). Users should consult with qualified legal counsel to ensure compliance with specific interest rate caps, disclosure requirements, and state-specific statutory nuances relative to their unique financial circumstances.

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1. PARTIES

This Promissory Note (“Note”) is made and entered into this [Day] day of [Month], [Year] (the “Effective Date”), by and between:

BORROWER: [Full Legal Name of Borrower], with a principal address at [Full Street Address, City, State, Zip] (“Borrower”); and

LENDER: [Full Legal Name of Lender], with a principal address at [Full Street Address, City, State, Zip] (“Lender”).

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2. PROMISE TO PAY

For value received, the Borrower promises to pay to the Lender the principal sum of [Amount in USD] ($[0.00]) (the “Principal”), together with interest on the unpaid principal balance at a rate of [Percentage]% per annum (the “Interest Rate”), calculated on the basis of a 365-day year.

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3. REPAYMENT TERMS

The Principal and all accrued interest shall be due and payable as follows: (a) Installment Payments: Borrower shall pay [Amount] on the [Day] of each [Month/Year], commencing on [Date], until the Principal and all accrued interest are paid in full. (b) Maturity Date: Notwithstanding the foregoing, the entire unpaid balance of this Note shall be due and payable in full on [Maturity Date].

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4. PREPAYMENT

Borrower reserves the right to prepay the outstanding principal balance in whole or in part at any time without penalty. Any partial prepayment shall be applied first to accrued interest and then to the principal balance.

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5. DEFAULT AND ACCELERATION

The occurrence of any of the following shall constitute an “Event of Default”: (a) Failure of Borrower to make any payment when due under this Note; (b) The filing of a voluntary or involuntary petition in bankruptcy or insolvency by or against the Borrower; (c) Breach of any material representation or warranty contained herein. Upon an Event of Default, the Lender may, at its option, declare the entire unpaid principal balance and all accrued interest immediately due and payable, without notice or demand.

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6. LATE FEES AND COLLECTION COSTS

If any payment is not received by the Lender within [Number] days of its due date, a late charge of [Percentage]% of the overdue amount shall be assessed. In the event of default, the Borrower agrees to pay all reasonable costs of collection, including, but not limited to, reasonable attorney’s fees incurred by the Lender in enforcing this Note.

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7. GOVERNING LAW AND JURISDICTION

This Note shall be governed by and construed in accordance with the laws of the State of New Jersey. Any dispute arising under or in connection with this Note shall be subject to the exclusive jurisdiction of the courts located in [County Name] County, New Jersey.

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8. MISCELLANEOUS

(a) Waiver: No delay or omission by the Lender in exercising any right hereunder shall operate as a waiver of such right or any other right. (b) Amendments: This Note may not be amended, modified, or supplemented except by a written instrument signed by both parties. (c) Entire Agreement: This Note constitutes the entire agreement between the parties concerning the subject matter hereof.

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EXECUTION AND SIGNATURE BLOCKS

FOR BORROWER: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Company: [Company Legal Name, if applicable] Date: [Date]

FOR LENDER: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Company: [Company Legal Name, if applicable] Date: [Date]

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STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Field Completion: Open the document in a word processor. Replace all bracketed information (e.g., [Amount in USD]) with specific transactional data. Ensure no placeholders remain.
2. Legal Review: If the Principal amount exceeds $10,000, it is strongly recommended that a New Jersey-licensed attorney reviews the "Interest Rate" clause to ensure it does not violate the New Jersey Criminal Usury Law (N.J.S.A. 2C:21-19).
3. Signatory Authority: Verify that the signatories have the legal capacity to bind their respective entities. For corporations, ensure the signer holds an officer title (CEO, CFO, Treasurer).
4. Execution: Use a compliant e-signature platform (e.g., DocuSign, Adobe Sign) for a robust audit trail. If signing in physical form, use blue ink and ensure both parties receive a fully executed original (wet-signed).
5. Record Retention: Retain the original signed Note in a secure, fireproof location or a digital vault. If this Note is secured by real property, record a Mortgage or UCC-1 Financing Statement with the appropriate County Clerk or the New Jersey Secretary of State.