Promissory Note Examples in Word

PROMISSORY NOTE (SECURED/UNSECURED)

Document ID: PN-[YYYYMMDD]-001
Effective Date: [Effective Date]
Version: 1.0
Governing Jurisdiction: State of [State], United States of America

LEGAL DISCLAIMER

THIS DOCUMENT IS A TEMPLATE PROVIDED FOR INFORMATIONAL PURPOSES ONLY. It does not constitute legal advice or create an attorney-client relationship. Promissory notes are subject to specific state laws regarding usury limits, disclosure requirements, and enforceability. You are strictly advised to have this document reviewed by qualified legal counsel in the applicable jurisdiction before execution to ensure compliance with local statutes and regulations.

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1. PARTIES AND RECITALS

This Promissory Note (the "Note") is made and entered into as of the Effective Date by and between:

BORROWER: [Full Legal Name of Borrower], with a principal address at [Address] ("Borrower").
LENDER: [Full Legal Name of Lender], with a principal address at [Address] ("Lender").

RECITALS:
WHEREAS, Borrower desires to borrow from Lender, and Lender desires to lend to Borrower, the principal sum of [Amount in USD] (the "Principal Amount") pursuant to the terms and conditions set forth herein.

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2. PAYMENT TERMS

2.1 Principal and Interest. Borrower promises to pay to the order of Lender the Principal Amount, plus interest on the unpaid principal balance at the rate of [Percentage]% per annum (the "Interest Rate"). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed.

2.2 Maturity Date. The entire unpaid principal balance and all accrued but unpaid interest shall be due and payable in full on [Maturity Date] (the "Maturity Date").

2.3 Payments. All payments shall be made in lawful money of the United States of America by [Wire Transfer/Check/ACH] to the account designated in writing by the Lender.

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3. PREPAYMENT

Borrower may prepay this Note in whole or in part at any time without penalty. Any partial prepayments shall be applied first to accrued interest and then to the reduction of the Principal Amount.

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4. DEFAULT AND ACCELERATION

4.1 Events of Default. The occurrence of any of the following shall constitute an "Event of Default": (a) failure to make any payment when due; (b) the filing of any bankruptcy or insolvency proceeding by or against the Borrower; or (c) the breach of any representation or covenant contained herein.

4.2 Acceleration. Upon the occurrence of 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 presentment, demand, protest, or further notice of any kind.

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5. COLLECTION COSTS

If this Note is placed in the hands of an attorney for collection after an Event of Default, or if it is collected through any legal proceeding, Borrower agrees to pay all reasonable attorneys' fees, court costs, and collection expenses incurred by Lender.

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6. WAIVERS

Borrower waives presentment for payment, notice of dishonor, protest, and notice of protest. No delay or omission on the part of the Lender in exercising any right hereunder shall operate as a waiver of such right or any other right.

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7. GOVERNING LAW AND DISPUTE RESOLUTION

7.1 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles.

7.2 Arbitration. Any dispute, controversy, or claim arising out of or relating to this Note shall be settled by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules. The seat of arbitration shall be [City, State].

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8. MISCELLANEOUS

8.1 Entire Agreement. This Note constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, oral or written.

8.2 Severability. If any provision of this Note is held to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall continue in full force and effect.

8.3 Amendments. No amendment, modification, or waiver of any provision of this Note shall be effective unless in writing and signed by both parties.

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9. EXECUTION

FOR [BORROWER NAME]:
Signature: _____________________________________
Printed Name: [Name]
Title: [Title]
Company: [Company Legal Name]
Date: [Date]

FOR [LENDER NAME]:
Signature: _____________________________________
Printed Name: [Name]
Title: [Title]
Date: [Date]

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STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Drafting: Copy the text above into Microsoft Word or Google Docs. Replace all bracketed text [ ] with accurate legal data. Ensure the interest rate complies with your state’s usury laws.
2. Verification: Verify the legal authority of the signatories. If a corporate entity is the borrower, ensure the signatory has the board-delegated authority to incur debt.
3. Execution: Use a secure, compliant e-signature platform such as DocuSign, Adobe Sign, or HelloSign. These platforms provide an audit trail necessary for evidentiary support in court.
4. Notarization: While not strictly required for a simple promissory note, consider having the signatures notarized if the Principal Amount is significant, as this mitigates claims of forgery.
5. Record Retention: Store the original signed digital PDF in a secure cloud-based document management system (DMS) with redundant backups. Keep the audit trail certificate attached to the document file.