Contracts Sample Legal Forms
"PROMISSORY NOTE - LONG FORM"

This is not a substitute for legal advice.  An attorney must be consulted.

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PROMISSORY NOTE
(LONG FORM)

DEBTOR: Richard Aldebt, 121 Small Street1
CREDITOR: Last National Bank, 293 Highway 52
DATE OF NOTE: May 1, 19963
AMOUNT OF NOTE: $100,0004
INTEREST RATE: 8%5
PURPOSE OF NOTE: Working Capital6
MATURITY DATE: April 30, 19977

          1. PROMISE: On this 1st day of April, yr 19968, the undersigned first party (debtor) jointly and severally agree as principals to pay the second party (creditor), its successors, agents and/or assigns the amount of $100,0009 (principal amount) plus interest in the amount of 8%10 (rate of interest).
          2. PAYMENT: The payment of the above-noted amount plus interest at the above identified rate shall be paid either: (a) in a single payment11 in the amount of $108,00012 (total amount of principal plus total amount of interest) on the maturity date of the 30th day of April, yr 19977; or (b) in         (number of installments) installments of $                      on the         day of each month after the date of this note until fully paid. In no event shall final payment of principal and interest extend beyond the maturity date of this note, the 30th day of April, yr 199713. Interest shall first be deducted from the payment made, with the balance of the payment applied to the principal.
          3. INTEREST: The interest of the principal amount due on this note is 8%14 per annum. If the interest and principal is not paid when due, the unpaid balance shall draw a higher rate of interest of 9-1/2%15 per annum.
          4. SECURITY: Any security offered in conjunction with this note is identified as: accounts receivables16 (description of property offered as security). An appropriate UCC form may be filed with the proper authority, including the Secretary of State or County Recorder, in conjunction with any security interest held in conjunction with this paragraph.
          5. CONSUMER CREDIT: This agreement is not considered by the parties to be a consumer credit transaction. This transaction is subject to the Uniform Commercial Code of the State of Illinois17.

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright � 2003 - 2009 by LAWCHEK, LTD.

 

 

          6. DEFAULT18: This note shall be considered to be in default whenever there exists: (a) failure to pay either interest or principal when same is due; (b) death of the debtor; (c) failure by the debtor to comply with any provisions of this agreement including the pledging of items listed as security in this agreement to any other party; (d) insolvency or business failure by the debtor; (e) any assignments for the benefits of other creditors or the filing of bankruptcy by the debtor; (f) any attachments, liens or acquisitions that, in any way, affect property offered in this agreement as security or collateral; (g) any untrue statements, misrepresentations or misstatements made by debtor; or (h) any occurrence of default or breach of any agreements by debtor that may relate to this note or the security offered.
          7. REMEDIES19: In the event of default, all amounts of principal and interest are deemed due and owing to the second party. The second party creditor to this agreement shall be entitled to all remedies permitted by law. Additionally, the second party shall be entitled to recover all expenses related to collection including attorney fees and costs from the first party, if collection is necessary. Such amounts shall be in addition to any interest, penalty interest, and principal amounts due.
          8. LAW APPLICABLE: The law of the State of Illinois20 shall apply to this agreement.  Failure at any time to exercise certain options available to the second party under this control shall not be deemed a waiver of any rights provided under Illinois20 law on this agreement by the second party. The second party may exercise its rights and options under this agreement at a time later than the date when any sums may come due and the second party may make demand for payment at any time after such payments fall due.
          9. INSPECTION: The second party may inspect, copy and review the first party's books and records at any reasonable time.
          10. ASSIGNMENT OR SALE21: The second party may assign or sell its interest in this agreement at any time and without notice to the first party.

 

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright � 2003 - 2009 by LAWCHEK, LTD.

 

 
          11. OTHER PROVISIONS:

 

 

 

          Dated at Chicago, Illinois22 (location where note is signed) on this 1st day of April, yr199623.

 

                                                                                     
Signature of Second24
Party/Creditor		 Signature of First25
Party/Debtor
                                          
                                          		                                           
                                          
Address of Second Party26 Address of First Party27

 

 

 

 

 

 

 

 

 

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright � 2003 - 2009 by LAWCHEK, LTD.

 

The form above is an example of how a typical Promissory Note (Long Form) may be completed.

  1. The full name and address of the party who owes the debt should be included here.

  2. The full name and address of the bank or party to whom the debt is owed.

  3. The date of the note or the date the debt is incurred is noted at this space.

  4. The total amount borrowed should be inserted at this point.

  5. The rate of interest needs to be disclosed at this point.

  6. The use for which the money is being loaned should be set forth.

  7. The date the note is due should be stated.

  8. The date the note is signed.

  9. The total amount of the note.

  10. The rate of interest should be set forth.

  11. Two options are provided in this sample note: (1) the option of a single payment, which includes the amount of the note, plus interest, or (2) the option of installments, which is subparagraph (b).  In this particular case, the option of single payment was chosen and has been completed for illustration purposes.

  12. The total amount of the principal, plus the amount of interest, is shown.

  13. The maturity date when the principal and interest are due is set forth.

  14. The amount of interest for the note is set forth.  This may be regulated by state law; therefore, it is important to consult legal counsel as to the rates that may be changed.

  15. A higher rate of interest may be charged is the note is not paid on a timely basis.  Again, an attorney should be consulted.

  16. In this particular case, the security offered happens to be accounts receivable.  Other security may be offered including real estate or personal property, etc., subject to state law.

  17. The state in which the transaction is regulated should be set forth.

  18. Various bases for default are set forth under this paragraph 6.  These may vary from state to state; therefore, an attorney should be consulted.

  19. The remedies to which the parties have agreed are set forth and again this matter is something that may change subject to state regulations.  Therefore, an attorney must be consulted.

  20. The state of Illinois has been chosen as the state applicable, since the note was written in Illinois.

  21. It is possible under certain circumstances and in certain states for the notes to be assigned.  Many times banks will assign notes to other parties, and that designation has been set forth in this agreement.  Again, an attorney should be consulted relative tot his particular language.

  22. The location of Chicago, Illinois, was arbitrarily selected.

  23. The date on which the note was signed should be set forth.

  24. The signature of the authorized agent of the Second Party Creditor.

  25. The signature of the First Party Debtor.

  26. The address of the Second Party/Creditor.

  27. The address of the First Party/Debtor.

This is not a substitute for legal advice.  An attorney must be consulted.
 Copyright � 2003 - 2009 by LAWCHEK, LTD.

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