Promissory Note Sample with Notary

PROMISSORY NOTE (SECURED/UNSECURED)

Document ID: PN-[YYYYMMDD]-[SERIAL#]
Effective Date: [Effective Date]
Version: 1.0
Governing Jurisdiction: [State/Province], [Country]

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CLINICAL LEGAL DISCLAIMER

This document is a general legal template intended for institutional informational purposes. It does not constitute specific legal advice or an attorney-client relationship. Promissory notes are subject to complex state-specific statutes (including usury laws, licensing requirements, and UCC Article 3 implications). Parties are strictly advised to have this document reviewed by qualified legal counsel in the applicable jurisdiction prior to execution to ensure compliance with local lending and contract laws.

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1. PARTIES AND RECITALS

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

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

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

RECITALS: Borrower acknowledges receipt of the principal sum described below and agrees to repay said sum subject to the terms and conditions set forth herein.

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2. PRINCIPAL AMOUNT AND INTEREST

2.1 Principal Sum. Borrower promises to pay to the order of Lender the principal sum of [Amount in USD] USD ($[0.00]), together with interest on the unpaid principal balance at the rate of [Interest Rate]% per annum (the “Interest Rate”).

2.2 Computation. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed.

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3. PAYMENT TERMS

3.1 Payment Schedule. Borrower shall pay the principal and accrued interest in [Installment Frequency, e.g., monthly] installments of $[Installment Amount] beginning on [First Payment Date] and continuing until [Maturity Date], at which time the entire remaining balance of principal and interest shall be due and payable in full.

3.2 Method of Payment. All payments shall be made in lawful currency of the United States of America via [Wire Transfer/ACH/Check] to the account designated by Lender in writing.

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4. DEFAULT AND ACCELERATION

4.1 Event of Default. An Event of Default shall occur if: (a) Borrower fails to make any payment when due and such failure continues for [Number] days; or (b) Borrower files for bankruptcy, becomes insolvent, or makes an assignment for the benefit of creditors.

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.

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5. MISCELLANEOUS PROVISIONS

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

5.2 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.

5.3 Entire Agreement. This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior discussions or understandings.

5.4 Amendment. No modification or amendment to this Note shall be effective unless in writing and signed by both parties.

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6. EXECUTION AND NOTARIZATION

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

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

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

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NOTARY ACKNOWLEDGMENT State of ____________________ County of __________________

On this _____ day of ________, 20, before me personally appeared ____________________________ (Borrower) and ____________________________ (Lender), known to me to be the persons described in and who executed the foregoing instrument, and acknowledged that they executed the same as their free act and deed.

[NOTARY SEAL]

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Notary Public, State of ______________ My Commission Expires: _______________

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7. STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Replace all bracketed text [ ] with actual details. Ensure the Principal Amount is written in both words and figures to prevent ambiguity.
2. Verification of Authority: If the Borrower or Lender is an entity (LLC/Corp), verify the signatory has the legal capacity to bind the entity (e.g., check Articles of Incorporation or an Incumbency Certificate).
3. Digital Signature (Optional): If using DocuSign or Adobe Sign, ensure the "Notary" field is configured for a Remote Online Notarization (RON) session, as standard digital signing does not satisfy the physical requirement of a Notary Public's seal unless specific state-approved electronic platforms are used.
4. Notarization: Ensure the Notary Public witnesses the signing physically (or via approved RON platform) and applies their official seal.
5. Record Retention:
   • Lender: Must retain the original "wet ink" or cryptographically signed PDF of the Note in a secure, fireproof location. This is a negotiable instrument; the physical possession of the original copy is legally significant.
   • Borrower: Should retain a certified copy for accounting and tax reporting purposes.
6. Filing: If the Note is secured by an asset (e.g., real estate or equipment), proceed to file a UCC-1 Financing Statement or a Deed of Trust with the relevant Secretary of State or County Clerk to perfect the security interest.