Promissory Note Template New Jersey

PROMISSORY NOTE (SECURED/UNSECURED)

DOCUMENT ID: PN-NJ-[YYYYMMDD]-001
EFFECTIVE DATE: [Effective Date]
VERSION: 1.0
GOVERNING JURISDICTION: State of New Jersey

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LEGAL DISCLAIMER

This document is provided for informational purposes as a template and does not constitute formal legal advice or the formation of an attorney-client relationship. Promissory notes are subject to specific provisions under the New Jersey Uniform Commercial Code (N.J.S.A. 12A:3-101 et seq.) and applicable usury laws. Parties should consult with qualified legal counsel in New Jersey prior to execution to ensure compliance with individual financial circumstances and regulatory requirements.

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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 at [Borrower Address] (“Borrower”); and

LENDER: [Lender Full Legal Name], with a principal address at [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] (the “Principal Amount”), together with interest on the unpaid principal balance at a rate of [Interest Rate]% per annum, calculated on the basis of a 365-day year.

3. PAYMENT TERMS

Borrower shall pay the Principal Amount and accrued interest as follows: (a) Installments: Borrower shall make consecutive [Monthly/Quarterly/Annual] payments of $[Amount] beginning on [Date], and continuing on the same day of each subsequent period until [Maturity Date] (the “Maturity Date”). (b) Application of Payments: All payments shall be applied first to accrued interest, and the remainder to the Principal Amount. (c) Prepayment: Borrower reserves the right to prepay the outstanding principal balance in whole or in part at any time without penalty.

4. DEFAULT AND ACCELERATION

The occurrence of any of the following shall constitute an “Event of Default”: (i) failure of Borrower to make any payment when due; (ii) the filing of a bankruptcy or insolvency petition by or against Borrower; or (iii) a material breach of any representation or warranty herein. Upon an Event of Default, Lender may, at its option, declare the entire unpaid principal balance and all accrued interest immediately due and payable.

5. LATE FEES AND INTEREST

If any payment is not received by the Lender within [Number] days of its due date, a late charge of [Percentage]% of the overdue amount shall be assessed. Any overdue payments shall bear interest at the maximum rate permitted by New Jersey law until satisfied.

6. COLLECTION COSTS

In the event of default, Borrower agrees to pay all reasonable costs of collection, including, but not limited to, reasonable attorney fees and court costs incurred by Lender in enforcing this Note, to the extent permitted by New Jersey law.

7. WAIVER OF PRESENTMENT

Borrower, and any endorsers or guarantors hereof, hereby waive presentment, notice of dishonor, and protest, and assent to any extension of time for payment or other indulgence granted by Lender.

8. GOVERNING LAW AND VENUE

This Note shall be governed by and construed in accordance with the laws of the State of New Jersey. Any dispute arising hereunder shall be subject to the exclusive jurisdiction of the state or federal courts located in [County Name] County, New Jersey.

9. ENTIRE AGREEMENT

This Note constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior discussions, representations, or agreements, whether written or oral. No amendment or modification to this Note shall be effective unless in writing and signed by both parties.

10. 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.

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EXECUTION AND SIGNATURE BLOCKS

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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STEP-BY-STEP EXECUTION AND FILING GUIDE

1. Document Preparation:

   • Copy the text above into a word processing application (Word/Google Docs).
   • Replace all bracketed [ ] information with the specific legal data relevant to the transaction.
   • Ensure the Maturity Date and Interest Rate are clearly defined to avoid ambiguity under NJ lending statutes.

2. Verification of Authority:

   • If the Borrower or Lender is an entity (LLC, Corp), ensure the signatory holds the proper corporate resolution or bylaws authority to bind the entity to debt obligations.
   • Attach a copy of the corporate resolution as an exhibit if requested by the lender.

3. Digital Execution:

   • For remote execution, utilize an e-signature platform compliant with the ESIGN Act and UETA (e.g., DocuSign, Adobe Sign, or HelloSign).
   • Ensure the audit trail (Certificate of Completion) is downloaded and saved alongside the signed Note.

4. Notarization (Optional but Recommended):

   • While not strictly required for a simple promissory note, having a Notary Public witness the signatures provides an added layer of verification regarding the identity of the signers, which is beneficial for litigation/collection purposes.

5. Record Retention:

   • Retain the executed original in a secure, fireproof, or digital encrypted repository. Under New Jersey statute of limitations (N.J.S.A. 2A:14-1), maintain the document for at least six (6) years following the maturity date or the final payment, whichever is later.