Promissory Note Template in Word

PROMISSORY NOTE (UNSECURED)

Document ID: PN-202X-001
Effective Date: [Date]
Version: 1.0
Governing Jurisdiction: State of [State]

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STATUTORY & LEGAL COMPLIANCE NOTICE

DISCLAIMER: This document is a template provided for informational purposes only and does not constitute formal legal advice. Promissory notes are subject to specific state-level statutes, including but not limited to usury laws, licensing requirements for lenders, and UCC Article 3 regulations. The user is strictly advised to consult with qualified legal counsel in the applicable jurisdiction before execution to ensure compliance with local lending regulations and consumer protection statutes.

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1. PARTIES

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”).

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

2. PRINCIPAL SUM AND INTEREST

For value received, the Borrower promises to pay to the order of 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 the basis of a 365-day year.

3. REPAYMENT TERMS

The Principal and any accrued interest shall be due and payable in full on [Maturity Date] (the “Due Date”). Payments shall be made via [Wire Transfer/ACH/Check] to the Lender at the address stated above or such other place as the Lender may designate in writing.

4. PREPAYMENT

The Borrower reserves the right to prepay the Principal, in whole or in part, at any time without penalty or premium. Any partial prepayment shall be applied first to accrued interest and thereafter to the reduction of the Principal.

5. DEFAULT AND ACCELERATION

The occurrence of any of the following shall constitute an “Event of Default”: (a) Failure to make any payment when due under this Note; (b) The filing of any bankruptcy or insolvency proceedings by or against the Borrower; (c) Breach of any material representation or covenant herein. 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.

6. LATE FEES AND COLLECTION COSTS

If any payment is not received within [Number] days of the due date, the Borrower shall pay a late fee of [Percentage]% of the overdue amount. If this Note is placed in the hands of an attorney for collection, the Borrower agrees to pay all reasonable attorney’s fees and court costs incurred by the Lender.

7. GOVERNING LAW AND VENUE

This Note shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of laws principles. Any legal action arising hereunder shall be brought exclusively in the courts located in [County], [State].

8. WAIVER

The Borrower hereby waives presentment, notice of dishonor, and protest. No failure or delay by the Lender in exercising any right under this Note shall operate as a waiver thereof.

9. ENTIRE AGREEMENT

This Note constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, understandings, or agreements, whether written or oral. This Note may not be amended except in a written instrument signed by both parties.

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10. EXECUTION AND FORMAL SIGNATURE BLOCKS

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

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

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11. STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Field Completion: Open this document in Microsoft Word. Use the "Find and Replace" function (Ctrl+H) to replace all bracketed items (e.g., [Amount in USD]) with the specific transaction details. Remove all brackets once populated.
2. Verify Authority: Ensure that the individuals signing have the legal authority to bind their respective entities (check Corporate Bylaws or Operating Agreements for signatory power).
3. Execution: If executing via DocuSign or Adobe Sign, upload the final PDF. Ensure that the "Audit Trail" feature is enabled to capture IP addresses and timestamps for each signature.
4. Notarization: While not strictly required for a simple promissory note in many jurisdictions, notarization is highly recommended if the note involves significant sums or if there is a risk of future litigation regarding the authenticity of signatures.
5. Record Retention: The Lender should retain the "wet ink" or digitally signed original in a secure, fireproof, or encrypted digital archive for the duration of the statute of limitations applicable to contract debt in the governing jurisdiction (typically 3–7 years).