Promissory Note Format in English

PROMISSORY NOTE (UNSECURED / SECURED)

DOCUMENT ID: PN-[YYYYMMDD]-[SERIAL#] EFFECTIVE DATE: [Month Day, Year] VERSION: 1.0 GOVERNING JURISDICTION: [State/Province, Country]

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STATUTORY & LEGAL COMPLIANCE NOTICE

This document constitutes a legal instrument. Laws governing promissory notes, interest rate caps (usury laws), and enforcement vary significantly by jurisdiction. This template is provided for informational purposes and does not constitute formal legal advice or the creation of an attorney-client relationship. You are advised to have this document reviewed by qualified legal counsel in the applicable jurisdiction prior to execution to ensure compliance with local statutes, including the Uniform Commercial Code (UCC) where applicable.

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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: [Borrower Full Legal Name], having its principal address at [Full Physical Address] ("Borrower"), and

LENDER: [Lender Full Legal Name], having its principal address at [Full Physical Address] ("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] USD (the "Principal"), together with interest on the unpaid principal balance at a rate of [Percentage]% per annum, calculated on a [Simple/Compound] basis.

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3. REPAYMENT TERMS

The Borrower shall repay the Principal and accrued interest in accordance with the following schedule: (a) Installment Payments: Payments shall be made in [Number] installments of [Amount in USD], beginning on [Date] and continuing on the [Day] of each [Month/Quarter] thereafter until paid in full. (b) Maturity Date: The entire remaining unpaid balance of the Principal and any accrued interest shall be due and payable in full on [Date of Maturity]. (c) Prepayment: Borrower reserves the right to prepay the outstanding principal balance in whole or in part at any time without penalty.

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4. LATE PAYMENTS AND DEFAULT

(a) Late Fee: Any payment not received within [Number] days of its due date shall incur a late charge of [Percentage]% of the overdue amount. (b) Events of Default: An "Event of Default" shall occur if (i) Borrower fails to make any payment when due and such failure continues for [Number] days; or (ii) Borrower files for bankruptcy or insolvency. (c) Acceleration: 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.

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5. REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants that (i) it has the full legal power and authority to enter into this Note; (ii) this Note constitutes a legal, valid, and binding obligation of the Borrower; and (iii) the execution of this Note does not violate any other agreement to which the Borrower is a party.

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6. GOVERNING LAW AND DISPUTE RESOLUTION

(a) Governing Law: This Note shall be governed by and construed in accordance with the laws of [Jurisdiction], without regard to its conflict of law principles. (b) Dispute Resolution: Any dispute arising out of or related to this Note shall be settled by binding arbitration in [City, State] under the rules of the American Arbitration Association (AAA). The prevailing party shall be entitled to recover reasonable attorney's fees and costs.

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7. MISCELLANEOUS

(a) Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. (b) Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements, oral or written. (c) Amendment: No modification or amendment to this Note shall be effective unless in writing and signed by both parties.

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8. EXECUTION & SIGNATURES

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

FOR LENDER: Signature: _____________________________________ Printed Name: [Authorized Signatory Name] Title: [Title / Role] Date: [Date]

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Customization: Open this document in a word processor. Replace all bracketed text [ ] with accurate legal data. Ensure the "Amount" is written in both words and numbers for clarity.
2. Review: Have the document reviewed by your internal or external legal counsel, specifically to check the "Interest Rate" against your local state "Usury Laws" to ensure it is not legally excessive.
3. Signatory Authority: Verify that the person signing on behalf of the entity has the corporate authority (Board Resolution or Power of Attorney) to bind the company to financial debt.
4. Digital Execution: Use an e-signature platform such as DocuSign, Adobe Sign, or HelloSign. These platforms provide a tamper-evident Audit Trail, which is critical for enforcing promissory notes in court.
5. Record Retention:
   • Store the original electronically signed PDF in a secure, encrypted cloud repository (e.g., SharePoint, Box, or DocuSign CLM).
   • If this is a high-value note, maintain a physical folder with the "wet ink" or verified e-signed copy.
   • Calendar the "Maturity Date" and "Installment Dates" in your accounting software to ensure timely payment processing.