Promissory Note Sample for Tuition Fee Enrollment

PROMISSORY NOTE AND TUITION PAYMENT AGREEMENT

Document ID: PN-TUI-V1-2024
Effective Date: [Effective Date]
Version: 1.0.4 (Institutional Grade)
Governing Jurisdiction: [State/Province], [Country]

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STATUTORY & LEGAL COMPLIANCE NOTICE

IMPORTANT NOTICE TO THE MAKER (STUDENT/PAYOR): THIS IS A LEGALLY BINDING INSTRUMENT. DO NOT SIGN THIS DOCUMENT BEFORE YOU READ IT OR IF IT CONTAINS BLANK SPACES. YOU ARE ENTITLED TO AN EXACT COPY OF THE PAPER YOU SIGN. UNDER THE LAWS OF VARIOUS JURISDICTIONS, INCLUDING BUT NOT LIMITED TO THE TRUTH IN LENDING ACT (TILA) AND STATE-SPECIFIC USURY LAWS, CERTAIN DISCLOSURES MAY BE REQUIRED. BY EXECUTING THIS DOCUMENT, THE MAKER ACKNOWLEDGES THAT THIS NOTE IS FOR EDUCATIONAL PURPOSES AND MAY NOT BE DISCHARGEABLE IN BANKRUPTCY PURSUANT TO 11 U.S.C. § 523(A)(8). CONSULT WITH INDEPENDENT LEGAL COUNSEL IF YOU DO NOT UNDERSTAND ANY PROVISION HEREIN.

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1. PARTIES AND RECITALS

1.1 THE PARTIES. This Promissory Note ("Note") is entered into on the Effective Date by and between:

• PAYEE (THE INSTITUTION): [Institution Full Legal Name], a [Legal Entity Type, e.g., Non-Profit Corporation] organized under the laws of [State], with its principal place of business located at [Full Address] (hereinafter referred to as the "Institution").
• MAKER (THE STUDENT/PAYOR): [Student/Payor Full Legal Name], an individual residing at [Full Residential Address] (hereinafter referred to as the "Maker").
• CO-SIGNER/GUARANTOR (IF APPLICABLE): [Guarantor Full Legal Name], an individual residing at [Full Residential Address] (hereinafter referred to as the "Guarantor").

1.2 RECITALS. The Maker wishes to enroll in the [Name of Academic Program/Course] offered by the Institution. In consideration of the Institution’s agreement to provide educational services, the Maker hereby acknowledges a debt to the Institution for the remaining balance of tuition, fees, and related educational expenses for the [Academic Period, e.g., Fall 2024 Semester].

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2. OPERATIVE CLAUSES & LEGAL TERMS

2.1 PROMISE TO PAY

For value received, the Maker (and Guarantor, if any) hereby jointly and severally promise to pay to the order of the Institution the principal sum of [Amount in USD, e.g., $10,000.00] (the "Principal Amount"), together with any applicable interest and fees, in accordance with the payment schedule set forth in Section 2.2.

2.2 COMPENSATION & PAYMENT TERMS

• 2.2.1 Interest: The Principal Amount shall [accrue interest at a rate of [Percentage]% per annum / not accrue interest provided payments are made timely].
• 2.2.2 Installment Schedule: Payments shall be made in [Number] installments of [Installment Amount in USD] on the [Day, e.g., 1st] of each month, commencing on [Start Date] and terminating on [End Date].
• 2.2.3 Late Charges: If any payment is more than [Number, e.g., 5] days late, the Maker shall pay a late fee of [Amount in USD or Percentage of Payment, e.g., $50.00 or 5%].
• 2.2.4 Application of Payments: All payments shall be applied first to accrued late fees and collection costs, second to accrued interest, and lastly to the Principal Amount.

2.3 SCOPE OF SERVICES & ENROLLMENT

The Institution agrees to provide the Maker with access to instruction, faculty, facilities, and academic resources commensurate with the Maker’s enrollment status. The Institution reserves the right to withhold transcripts, diplomas, and future registration privileges if the Maker fails to satisfy the financial obligations of this Note.

2.4 TERM AND TERMINATION

• 2.4.1 Term: This Note shall remain in effect until the Principal Amount, interest, and any fees are paid in full.
• 2.4.2 Withdrawal: In the event the Maker withdraws from the Institution, the Maker’s obligation to pay the remaining balance is subject to the Institution’s published Refund Policy. Withdrawal does not automatically extinguish the debt owed under this Note.

2.5 EVENT OF DEFAULT & ACCELERATION

The occurrence of any of the following shall constitute an "Event of Default":

1. Failure to make any payment within [Number] days of the due date.
2. The Maker’s filing for bankruptcy or insolvency.
3. Death of the Maker (subject to state law).

Upon an Event of Default, the Institution may, at its sole option and without notice, declare the entire unpaid Principal Amount and accrued interest immediately due and payable.

2.6 COLLECTION COSTS AND ATTORNEY’S FEES

In the event of a default, the Maker agrees to pay all costs of collection, including, but not limited to, reasonable attorney’s fees, court costs, and collection agency fees (which may be up to [Percentage, e.g., 33%] of the total debt).

2.7 REPRESENTATIONS AND WARRANTIES

The Maker represents and warrants that: (a) they have the legal capacity to enter into this Note; (b) the information provided in the enrollment application is true and correct; and (c) this Note constitutes a valid and binding obligation enforceable against the Maker in accordance with its terms.

2.8 LIMITATION OF LIABILITY & INDEMNIFICATION

The Institution’s liability for any claim arising out of this Note or the provision of educational services shall be limited to the total amount paid by the Maker under this Note. The Maker agrees to indemnify and hold the Institution harmless from any loss or damage resulting from the Maker's breach of this Agreement.

2.9 DISPUTE RESOLUTION & ARBITRATION

Any dispute, claim, or controversy 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 venue for such arbitration shall be [City, State]. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

2.10 GOVERNING LAW & JURISDICTION

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

2.11 MISCELLANEOUS PROVISIONS

• 2.11.1 Severability: If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
• 2.11.2 Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter herein and supersedes all prior agreements or understandings.
• 2.11.3 No Waiver: No failure or delay by the Institution in exercising any right under this Note shall operate as a waiver thereof.
• 2.11.4 Successors and Assigns: This Note shall be binding upon the Maker’s heirs, successors, and assigns. The Institution may assign this Note without the consent of the Maker.

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3. EXECUTION & FORMAL SIGNATURE BLOCKS

IN WITNESS WHEREOF, the parties have executed this Promissory Note as of the Effective Date first written above.

FOR THE INSTITUTION (PAYEE):

Signature: _____________________________________
Printed Name: [Authorized Signatory Name]
Title: [Title / Role, e.g., Bursar or CFO]
Company: [Institution Full Legal Name]
Date: [Date]

FOR THE MAKER (STUDENT/PAYOR):

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

FOR THE GUARANTOR (IF APPLICABLE):

Signature: _____________________________________
Printed Name: [Guarantor Name]
Title: Guarantor/Co-Signer
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).
   • Use the [Find and Replace] function to locate all bracketed text (e.g., [Institution Full Legal Name]) and replace with the specific factual data.
   • Ensure the interest rate and payment dates comply with local usury laws and the Institution’s academic calendar.

2. Verification of Authority:

   • Confirm that the person signing for the Institution has the delegated authority to bind the entity to financial agreements.
   • Confirm the Maker is of legal age (usually 18+). If the Maker is a minor, a parent or legal guardian must sign as a Guarantor.

3. Digital Execution (DocuSign/Adobe Sign):

   • Upload the finalized PDF to your e-signature platform.
   • Assign signature tags to the designated blocks in Section 3.
   • Enable "Identity Verification" if required by institutional risk policy.
   • Ensure all parties receive an automated "Executed Copy" upon completion.

4. Record Retention:

   • Electronic Copy: Store the fully executed PDF and its digital audit trail (Certificate of Completion) in a secure, encrypted Document Management System (DMS).
   • Physical Copy: If signed in ink, scan the original at 600 DPI and store the physical original in a fireproof safe.
   • Accounting Integration: Forward a copy to the Institution's Accounts Receivable department to initiate the billing cycle.