Promissory Note Sample for Enrollment

SECURED PROMISSORY NOTE AND ENROLLMENT PAYMENT AGREEMENT

Document ID: PN-ENRL-2024-99-A
Effective Date: [Effective Date]
Version: 1.0 (Enterprise Standard)
Governing Jurisdiction: [State/Province/Country]

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STATUTORY & LEGAL COMPLIANCE NOTICE

NOTICE TO STUDENT/MAKER: This is a legally binding contract. This document constitutes a promise to pay for educational services and enrollment. Do not sign this document before you read it or if it contains any blank spaces. You are entitled to an exact copy of the paper you sign. Under various state and federal laws, including the Truth in Lending Act (TILA) where applicable, you may have specific rights regarding disclosure of credit terms. This document is intended for use in a commercial or institutional capacity and may be subject to specific jurisdictional usury limits and consumer protection statutes. Institutional counsel should verify compliance with the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) if reporting to credit bureaus.

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1. PARTIES AND RECITALS

1.1 The Parties. This Secured Promissory Note and Enrollment Payment Agreement (the "Agreement") is entered into as of the Effective Date by and between:

• THE INSTITUTION: [Company/Institution Full Legal Name], a [Legal Entity Type, e.g., Delaware Corporation], located at [Principal Address] (the "Payee").
• THE STUDENT/MAKER: [Client/Student Full Legal Name], an individual, residing at [Principal Residence Address] (the "Maker").

1.2 Recitals. WHEREAS, the Maker desires to enroll in the educational program/course titled [Program Name] (the "Program") provided by the Payee; and WHEREAS, the Payee agrees to provide such educational services in exchange for the Maker’s absolute and unconditional promise to pay the full tuition and enrollment fees as set forth herein.

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2. OPERATIVE CLAUSES & LEGAL TERMS

2.1 Scope of Services and Enrollment. The Payee hereby grants the Maker enrollment in the Program. Services include, but are not limited to, access to instructional materials, faculty guidance, digital platforms, and administrative support necessary for the completion of the curriculum. The Maker acknowledges that enrollment is contingent upon the execution of this Note and adherence to the Payee’s institutional policies and code of conduct.

2.2 Compensation, Payment Terms, and Principal. For value received, the Maker promises to pay to the order of the Payee the principal sum of [Amount in USD, e.g., $10,000.00] (the "Principal Amount").

• Interest: The Principal Amount shall [select one: bear no interest / bear interest at a rate of [Percent]% per annum].
• Payment Schedule: The Maker shall pay the Principal Amount in [Number] installments of [Installment Amount] commencing on [First Payment Date] and continuing on the same day of each month thereafter until the balance is paid in full.
• Late Interest: Any payment not received within [Number] days of its due date shall be subject to a late fee of [Amount/Percent] and shall bear interest at the maximum rate allowed by law.

2.3 Term and Termination. This Agreement shall commence on the Effective Date and remain in full force until the Principal Amount and all accrued interest/fees are paid in full.

• Termination for Breach: The Payee may terminate the Maker’s enrollment immediately upon a material breach of this Agreement or the Payee’s policies.
• Cure Period: In the event of a payment default, the Maker shall have a period of [Number, e.g., 10] days to cure the default after written notice from the Payee.
• Effect of Termination: Termination of enrollment does not absolve the Maker of the obligation to pay the remaining balance of the Principal Amount, subject to the Payee’s refund policy.

2.4 Intellectual Property Ownership. The Maker acknowledges and agrees that all instructional materials, curriculum, software, trademarks, and "works made for hire" provided by the Payee are the sole and exclusive property of the Payee. The Maker is granted a limited, non-exclusive, non-transferable license to use such materials solely for personal educational purposes during the term of their enrollment. Any unauthorized reproduction or distribution is strictly prohibited.

2.5 Mutual Confidentiality and Non-Disclosure. Both parties agree to maintain the confidentiality of "Proprietary Information" exchanged during the Program. For the Maker, this includes trade secrets, proprietary methodologies, and business processes of the Payee. For the Payee, this includes the Maker’s personal identifiable information (PII) and academic records, subject to the Family Educational Rights and Privacy Act (FERPA) or equivalent local regulations.

2.6 Representations and Warranties. The Maker represents and warrants that: (i) they have the legal capacity to enter into this Agreement; (ii) this Agreement constitutes a valid and binding obligation; and (iii) the execution of this Agreement does not violate any other agreement to which the Maker is a party. The Payee represents that it is authorized to provide the Program and has the requisite expertise to deliver the services described.

2.7 Limitation of Liability and Indemnification. To the maximum extent permitted by law, the Payee’s total liability for any claim arising out of this Agreement shall not exceed the total amount paid by the Maker. The Maker agrees to indemnify and hold harmless the Payee from any claims, damages, or expenses (including reasonable attorney fees) arising from the Maker’s breach of this Agreement or negligent acts during the Program.

2.8 Default and Acceleration. Upon the occurrence of an "Event of Default" (including but not limited to failure to make any payment when due or the insolvency of the Maker), the Payee may, at its sole option, declare the entire unpaid Principal Amount and any accrued interest immediately due and payable without further notice or demand.

2.9 Dispute Resolution and Mandatory Arbitration. Any dispute, controversy, or claim arising out of or relating to this Agreement shall be settled by binding arbitration administered by [Arbitration Body, e.g., the American Arbitration Association (AAA)] in accordance with its Commercial Arbitration Rules. The seat of arbitration shall be [City, State]. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

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

2.11 Miscellaneous.

• Severability: If any provision of this Agreement is held invalid, the remainder shall continue in full force.
• Entire Agreement: This document constitutes the entire agreement between the parties regarding enrollment and payment.
• Counterparts: This Agreement may be executed in counterparts, including electronic signatures, which shall be deemed an original.

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3. EXECUTION & FORMAL SIGNATURE BLOCKS

IN WITNESS WHEREOF, the parties have executed this Secured Promissory Note and Enrollment Payment Agreement as of the Effective Date.

FOR THE INSTITUTION:

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

FOR THE STUDENT / MAKER:

Signature: _____________________________________
Printed Name: [Authorized Signatory Name]
Title: Student / Maker
Date: [Date]

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4. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Preparation of Document:

   • Open this document in a word processor (Microsoft Word or Google Docs).
   • Replace all bracketed text (e.g., [Company Full Legal Name]) with the specific details of the transaction. Ensure the "Amount in USD" is written both in numbers and words if required by local banking standards.

2. Verification of Authority:

   • Confirm that the "Authorized Signatory" for the Institution has the delegated authority to bind the entity to financial agreements.
   • Confirm the Student/Maker is of legal age (18+) to execute a binding promissory note.

3. Digital Signature Workflow:

   • Upload the finalized PDF to a secure e-signature platform (DocuSign, Adobe Sign, or HelloSign).
   • Tag the signature, date, and printed name fields for both the Institution and the Student.
   • Ensure the platform generates a "Certificate of Completion" or "Audit Trail" to verify the IP address and timestamp of the signatures.

4. Notarization (Optional but Recommended):

   • If the Principal Amount is significant (e.g., >$50,000), consider having the Student’s signature notarized to prevent "denial of signature" defenses in future litigation.

5. Record Retention:

   • Distribute a fully executed copy to the Student.
   • Store the original executed PDF and the Audit Trail in a secure, encrypted Document Management System (DMS).
   • Maintain the record for at least seven (7) years or the duration of the statute of limitations for written contracts in the Governing Jurisdiction.