Promissory Note Template Kansas

PROMISSORY NOTE (UNSECURED/SECURED)

Document ID: PN-KS-[YYYYMMDD]-001
Effective Date: [Effective Date]
Version: 1.0
Governing Jurisdiction: State of Kansas

LEGAL DISCLAIMER

This document is provided for informational purposes as a template and does not constitute formal legal advice or the creation of an attorney-client relationship. Promissory notes in Kansas are subject to the Uniform Commercial Code (UCC) as adopted in Kansas (K.S.A. Chapter 84) and applicable usury laws. Users are strongly advised to consult with qualified legal counsel licensed in Kansas to ensure compliance with specific lending regulations, interest rate caps, and local filing requirements.

1. PARTIES

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

BORROWER: [Borrower Full Legal Name], with a principal address of [Borrower Address] (“Borrower”).

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

2. PROMISE TO PAY

For value received, Borrower promises to pay to the order of Lender the principal sum of [Amount in USD] USD ($[Amount]), together with interest on the unpaid principal balance at a rate of [Interest Rate]% per annum (the "Interest Rate").

3. PAYMENT TERMS

(a) Repayment Schedule: Borrower shall pay the principal and accrued interest in [Monthly/Quarterly/Annual] installments of $[Installment Amount], beginning on [First Payment Date] and continuing on the same day of each subsequent period until [Maturity Date] (the "Maturity Date"). (b) Application of Payments: All payments made hereunder shall be applied first to the payment of accrued interest, and the remainder shall be applied to the reduction of the principal balance. (c) Prepayment: Borrower may prepay this Note in whole or in part at any time without penalty. Any partial prepayment shall not postpone the due date of any subsequent installment unless otherwise agreed to in writing by the Lender.

4. DEFAULT AND ACCELERATION

(a) Events of Default: The occurrence of any of the following shall constitute an "Event of Default": (i) Borrower’s failure to pay any amount due under this Note when due; (ii) The filing of bankruptcy or insolvency proceedings by or against the Borrower; (iii) A material breach of any covenant or representation contained herein. (b) Acceleration: Upon the occurrence of an Event of Default, and after any applicable cure period (as defined below), the Lender may, at its option, declare the entire unpaid principal balance, together with all accrued interest, to be immediately due and payable. (c) Cure Period: Borrower shall have [10] days from the receipt of written notice of default to cure any monetary default, provided that such cure right shall not apply more than [2] times in any 12-month period.

5. LATE FEES AND DEFAULT INTEREST

If any payment is not received within [10] days of its due date, a late charge of [5]% of the unpaid amount shall be assessed. Furthermore, upon the occurrence of an Event of Default, the interest rate shall increase to [Default Interest Rate]% per annum (the "Default Rate") until such default is cured or waived.

6. GOVERNING LAW AND VENUE

This Note shall be governed by, construed, and enforced in accordance with the laws of the State of Kansas, without regard to its conflict of laws principles. Any legal action arising under this Note shall be instituted exclusively in the state or federal courts located in [County Name] County, Kansas.

7. MISCELLANEOUS PROVISIONS

(a) Severability: If any provision of this Note is held to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall remain 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 of this Note shall be effective unless in writing and signed by both the Borrower and the Lender. (d) Waiver: No waiver of any breach or default shall be deemed a waiver of any subsequent breach or default.

8. EXECUTION

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]

STEP-BY-STEP EXECUTION & FILING GUIDE

1. Drafting: Replace all bracketed text (e.g., [Amount in USD]) with the specific deal terms. Ensure interest rates do not exceed Kansas statutory limits (review K.S.A. 16-201 et seq.).
2. Verification: Confirm that the signatory for the entity has the corporate authority (via Board Resolution or Operating Agreement) to bind the entity to debt obligations.
3. Execution: Use a secure e-signature platform (DocuSign/Adobe Sign) that creates an audit trail. Ensure the final document is signed by both parties.
4. Security Interest (Optional): If this Note is meant to be secured (i.e., by collateral), a separate Security Agreement must be drafted and a UCC-1 Financing Statement must be filed with the Kansas Secretary of State.
5. Retention: Store the signed original in a secure digital repository (e.g., DocuSign Envelope/Vault or a restricted corporate document management system). Maintain this document for at least the duration of the statute of limitations for contract actions in Kansas (typically 5 years for written contracts per K.S.A. 60-511).