Legal form · Money · state rules in review
Promissory Note
A promissory note is a written promise by a borrower to repay a set amount of money to a lender, on a schedule, with or without interest.
Promissory Note rules by state
We are still checking each state’s signing rules for this document against the state’s own statutes. A state appears here, with its sources, as soon as that check is done.
When to use one
- You are lending money to a friend or family member.
- You are borrowing from a private lender instead of a bank.
- You are selling something and the buyer will pay in installments.
Not the right document? It does not secure the loan with property by itself; a mortgage or security agreement does that.
Who signs
- Borrower
- The person promising to repay
- Lender
- The person who lends the money
Have at hand
- Amount borrowed and the date
- Interest rate, if any
- Payment schedule and due dates
- What happens if a payment is late
What our promissory note covers
- 1Promise to pay
- 2Interest
- 3Interest limit
- 4Payments
- 5How payments are made and applied
- 6Prepayment
- 7Late fee
- 8Default
- 9Collection costs
- 10Security
- 11Waivers
- 12Transfer
- 13Governing law and general terms
- 14Payment in full
- 15Signatures
SimplePaperwork is not a law firm and does not give legal advice. We explain public forms and official steps, and you decide what to sign and file.