Promissory Note Template Michigan

PROMISSORY NOTE (SECURED/UNSECURED)

DOCUMENT ID: PN-MI-[YYYYMMDD]-001 EFFECTIVE DATE: [Date] VERSION: 1.0 GOVERNING JURISDICTION: State of Michigan

LEGAL DISCLAIMER

This document is provided for informational and template purposes only and does not constitute formal legal advice or the creation of an attorney-client relationship. Promissory notes in Michigan are subject to the Uniform Commercial Code (MCL 440.3101 et seq.) and the Michigan usury laws. Parties should consult with qualified Michigan legal counsel to ensure compliance with specific interest rate caps, licensing requirements (if applicable), and perfection of security interests.

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1. PARTIES

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

BORROWER: [Borrower Full Legal Name], an individual/entity with a principal address at [Borrower Full Address] (“Borrower”).

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

2. PRINCIPAL SUM AND INTEREST

For value received, Borrower promises to pay to the order of Lender the principal sum of [Amount in USD] ($[Amount]) (“Principal”), together with interest on the unpaid principal balance at the rate of [Interest Rate]% per annum (the “Interest Rate”). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed.

3. REPAYMENT TERMS

The Principal and all accrued but unpaid interest shall be due and payable as follows: [Describe Payment Schedule, e.g., "In monthly installments of $X beginning on [Date] and continuing until [Date]," or "In a single balloon payment due on [Maturity Date]."]

All payments shall be made in lawful money of the United States to Lender at the address provided above or at such other place as Lender may designate in writing.

4. PREPAYMENT

Borrower reserves the right to prepay the outstanding principal balance in whole or in part at any time without penalty. Any partial prepayment shall be applied first to accrued interest and then to the reduction of the Principal balance.

5. DEFAULT AND ACCELERATION

The occurrence of any of the following shall constitute an “Event of Default”: (a) failure of Borrower to make any payment when due; (b) the filing of any bankruptcy or insolvency proceeding by or against Borrower; or (c) any material breach of a representation or warranty made herein. Upon the occurrence of an Event of Default, Lender may, at its sole option, declare the entire unpaid principal balance and all accrued interest immediately due and payable without further notice or demand.

6. LATE FEES AND COLLECTION COSTS

If any payment is not received within [Number] days of its due date, a late charge of [Percentage]% of the overdue amount shall be assessed. In the event of default, Borrower agrees to pay all reasonable costs of collection, including reasonable attorney fees and court costs incurred by Lender, to the extent permitted by Michigan law.

7. GOVERNING LAW AND VENUE

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

8. WAIVER

Borrower waives presentment for payment, notice of dishonor, protest, and notice of protest. No delay or omission by Lender in exercising any right or remedy hereunder shall operate as a waiver of such right or remedy.

9. ENTIRE AGREEMENT AND AMENDMENTS

This Note constitutes the entire agreement between the parties regarding the subject matter hereof. No amendment, modification, or waiver of any provision of this Note shall be effective unless in writing and signed by both the Borrower and the Lender.

10. SUCCESSORS AND ASSIGNS

The terms and conditions of this Note shall be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors, and assigns of the parties hereto.

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EXECUTION AND 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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STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Preparation: Open the document in a word processor (e.g., Microsoft Word or Google Docs). Replace all bracketed text [ ] with the verified legal information. Ensure the interest rate complies with Michigan’s usury statutes (MCL 438.31).
2. Verification of Authority: If the Borrower or Lender is an entity (LLC, Corporation), confirm that the person signing has the authority to bind the entity via an "Incumbency Certificate" or "Corporate Resolution."
3. Execution: Use a secure digital signature platform such as DocuSign, Adobe Sign, or HelloSign to capture signatures with an audit trail. Ensure both parties receive a copy of the final, fully executed document.
4. Record Retention: The Lender should retain the original signed electronic or hard-copy document in a secure location. If the Note is "Secured" (backed by collateral), you must file a UCC-1 Financing Statement with the Michigan Department of State to perfect the security interest.
5. Review: If the Principal amount is significant, it is highly recommended to have the final draft reviewed by Michigan counsel to ensure any specific secondary agreements (e.g., Collateral Agreements) are properly cross-referenced.