Promissory Note Template with Notary

PROMISSORY NOTE (SECURED/UNSECURED)

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

---

LEGAL DISCLAIMER

This document is provided for informational and drafting purposes only and does not constitute formal legal advice. Promissory notes are subject to specific state usury laws, licensing requirements for lenders, and UCC Article 3 regulations. The user is strictly advised to consult with local legal counsel to verify compliance with state-specific statutory requirements regarding interest rate caps, document formatting, and notarization mandates.

---

1. PARTIES

This Promissory Note ("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. PROMISE TO PAY

For value received, the Borrower hereby unconditionally promises to pay to the order of the Lender the principal sum of [Amount in USD] ($[Amount]), together with interest on the unpaid principal balance at the rate of [Interest Rate]% per annum, calculated on the basis of a 365-day year.

---

3. REPAYMENT TERMS

The principal and accrued interest shall be payable as follows: (a) Installments: Borrower shall pay $[Monthly/Annual Payment Amount] on the [Day] of each [Month/Year], commencing on [Start Date]. (b) Maturity Date: The entire unpaid principal balance and all accrued interest shall be due and payable in full on [Maturity Date] (the "Maturity Date"). (c) Prepayment: Borrower reserves the right to prepay this Note in whole or in part at any time without penalty. Any partial prepayments shall be applied first to accrued interest and then to the principal balance.

---

4. DEFAULT AND ACCELERATION

If any payment due under this Note is not paid within [Number] days of its due date, or if Borrower files for bankruptcy or insolvency, the Lender may, at its option, declare the entire unpaid principal and accrued interest immediately due and payable. Failure to exercise this option shall not constitute a waiver of the right to exercise it in the event of any subsequent default.

---

5. LATE CHARGES AND COLLECTION COSTS

If any payment is not received by the Lender within [Number] days of the due date, Borrower shall pay a late fee of $[Amount] to cover administrative costs. In the event of default, Borrower agrees to pay all reasonable costs of collection, including but not limited to reasonable attorney’s fees and court costs.

---

6. GOVERNING LAW AND JURISDICTION

This Note shall be governed by and construed in accordance with the laws of the State of [State Name]. Any legal action or proceeding arising under this Note shall be brought exclusively in the courts located in [County], [State].

---

7. MISCELLANEOUS

(a) Amendments: No modification or amendment to this Note shall be effective unless in writing and signed by both parties. (b) 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. (c) Entire Agreement: This Note constitutes the entire agreement between the parties regarding the subject matter hereof.

---

8. EXECUTION AND NOTARIZATION

IN WITNESS WHEREOF, the parties have executed this Note as of the date first above written.

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

LENDER: Signature: _____________________________________ Printed Name: [Name] Title: [Title / Role] Date: [Date]

NOTARY ACKNOWLEDGMENT State of ______________ ) County of ____________ )

On this ____ day of ________, 20, before me personally appeared [Borrower Name], known to me to be the person described in and who executed the foregoing instrument, and acknowledged that he/she executed the same as his/her free act and deed.

---

Notary Public, State of [State] My Commission Expires: [Date]

---

STEP-BY-STEP EXECUTION & FILING GUIDE

1. Document Preparation: Use "Find & Replace" in your word processor to swap all bracketed fields (e.g., [Borrower Full Legal Name]) with accurate legal data. Ensure the "Principal Amount" is written in both numerals and words to prevent ambiguity.
2. Verification of Authority: If the Borrower or Lender is an entity (LLC/Corp), confirm the signatory has documented "Corporate Authority" (via a Board Resolution or Operating Agreement) to bind the entity to debt obligations.
3. Interest Rate Compliance: Before finalizing, verify the interest rate does not exceed the "Usury Limit" in your state. Charging interest above legal limits can render the note unenforceable or result in statutory penalties.
4. Digital Execution: If using DocuSign or Adobe Sign, ensure "ID Verification" or "Knowledge-Based Authentication" (KBA) is enabled. Note: Notarization in a digital context requires an "Electronic Notary" platform (e.g., Notarize.com) to be legally binding in most jurisdictions.
5. Record Retention:
   • Provide a fully executed, original "wet-ink" or cryptographically signed PDF to both parties.
   • If the note is "Secured" (e.g., by a mortgage or UCC-1 filing), ensure the underlying security agreement is recorded with the appropriate county or state registrar.
   • Maintain the original document in a secure, fireproof, or encrypted digital archive for the life of the loan plus seven years.