Promissory Note Template Wisconsin

PROMISSORY NOTE (UNSECURED)

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

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LEGAL COMPLIANCE NOTICE

DISCLAIMER: This template is provided for informational purposes only and does not constitute formal legal advice or the creation of an attorney-client relationship. This document is drafted in accordance with general principles of Wisconsin contract law; however, specific regulatory requirements, interest rate caps under Wisconsin’s usury laws (Wis. Stat. § 138.04 et seq.), and individual credit circumstances necessitate a formal review by licensed legal counsel. Parties are advised to verify compliance with the Wisconsin Consumer Act if the Borrower is a natural person.

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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 of [Borrower Address] (“Borrower”).

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

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2. PRINCIPAL SUM AND INTEREST

2.1 Principal Amount: For value received, Borrower promises to pay to the order of Lender the principal sum of [Amount in USD] ($[Amount]) (the “Principal”).

2.2 Interest Rate: The unpaid principal balance shall bear interest at a rate of [Percentage]% per annum, compounded [Annually/Monthly], beginning on the Effective Date and continuing until the Principal is paid in full.

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3. REPAYMENT TERMS

3.1 Payment Schedule: Borrower shall pay the Principal and accrued interest in [Number] consecutive [monthly/quarterly] installments of $[Amount], commencing on [Start Date] and continuing on the [Day] of each subsequent month until [Maturity Date] (the “Maturity Date”), at which time all remaining unpaid principal and interest shall be due and payable in full.

3.2 Application of Payments: All payments made hereunder shall be applied first to accrued interest, and the remainder shall be applied to the reduction of the Principal balance.

3.3 Prepayment: Borrower reserves the right to prepay the Principal, in whole or in part, at any time without penalty.

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4. DEFAULT AND ACCELERATION

4.1 Event of Default: The occurrence of any of the following shall constitute an “Event of Default”: (a) failure to pay any installment when due; (b) the insolvency of Borrower or the filing of any bankruptcy or insolvency proceeding by or against Borrower; or (c) any material breach of the terms herein.

4.2 Acceleration: Upon the occurrence of an Event of Default, and following [10] days’ written notice of such default provided to Borrower without cure, 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. COLLECTION COSTS

If this Note is placed in the hands of an attorney for collection, or if it is collected through any legal proceeding, Borrower agrees to pay all reasonable costs and expenses of collection, including, but not limited to, reasonable attorney fees and court costs incurred by Lender, to the extent permitted by Wisconsin law.

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6. GOVERNING LAW AND VENUE

This Note shall be governed by, construed, and enforced in accordance with the laws of the State of Wisconsin. Any legal action or proceeding arising under this Note shall be brought exclusively in the state or federal courts located in [County Name] County, Wisconsin. Borrower hereby irrevocably submits to the personal jurisdiction of such courts.

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7. MISCELLANEOUS PROVISIONS

7.1 Waiver: No delay or omission by Lender in exercising any right or power hereunder shall impair any such right or power or be construed as a waiver thereof.

7.2 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.

7.3 Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements, oral or written. This Note may not be amended except by a written instrument signed by both parties.

7.4 Binding Effect: This Note shall be binding upon the heirs, successors, and assigns of the Borrower.

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8. EXECUTION

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

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

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STEP-BY-STEP EXECUTION & FILING GUIDE

1. Document Customization:
   • Open the document in a word processor. Replace all bracketed text (e.g., [Amount in USD]) with specific transactional data.
   • Ensure the interest rate complies with Wisconsin’s statutory limits (generally 12% per year for non-regulated loans per Wis. Stat. § 138.04, unless specific exemptions apply).
2. Verification of Authority:
   • If the Borrower or Lender is an entity (LLC/Corp), verify that the individual signing has actual or apparent authority by requesting a Board Resolution or an Incumbency Certificate.
3. Execution:
   • Use a robust digital signature platform such as DocuSign or Adobe Sign to ensure an audit trail (IP address, timestamp, and verification).
   • If signing in wet ink, ensure that both parties initial each page to prevent post-execution page substitution.
4. Record Retention:
   • The executed original should be stored in a secure, fireproof location or a backed-up digital document management system.
   • In the event of litigation, this document serves as "best evidence." Keep a copy of the payment ledger (record of all transactions) alongside the Note.