Promissory Note

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Though they are both documents used to outline the details of a loan, a loan agreement and a promissory note are different in several respects. The main difference is that a loan agreement is much more detailed and complex. It includes extensive provisions about when and how the borrower will repay the loan and what sorts of penalties will be incurred if the borrower does not follow through with repayment. Loan agreements are usually used when large sums of money are involved, such as student loans, mortgages, car loans, and business loans.

Promissory notes are much simpler documents. Unlike a loan agreement, which is binding on both the lender and the borrower, promissory notes are a one-sided document where the borrower agrees to repay the lender. Promissory notes are typically used for more informal arrangements between friends and family members or very small businesses.

For more information about which document to use in which circumstances, please refer to the guide What is the Difference Between a Promissory Note and Loan Agreement.

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Promissory Note

Alabama

Date: ________

Amount: $________

FOR VALUE RECEIVED, the undersigned borrower, ________, having a primary address at the following:

________

who shall hereinafter be known as "Borrower", hereby promises to pay lender, ________, having a primary address at the following:

________

who shall hereinafter be referred to as "Lender", the the sum of $________ (________) ("Principal Amount") with interest at the rate of ________% per annum ("Interest") on the unpaid principal in accordance with the terms and conditions set forth below.

Article 1 - TERMS OF REPAYMENT:

General Repayment: The Principal Sum plus all accrued interest will be paid back in full on ________ ("Due Date"). The Parties, between them, shall agree upon a payment method and structure, but the Borrower shall ensure that the entirety of the Principal Sum and all interest will be returned by the Due Date.

Past Due Interest: If the Due Date passes and the entirety of the Principal Sum with accrued interest has not been paid back, a higher interest rate of ________% per annum on the unpaid amount will be charged until all the funds owing are recouped in full.


Article 2 - DEFAULT:

The following events constitute default of this Promissory Note and upon their occurrence, the entirety of any remaining amount due shall become immediately payable:

a) Borrower's insolvency;

b) Borrower's death, incompetency; liquidation, or dissolution;

c) Borrower's making of a general assignment for the benefit of Borrower's creditors;

d) Borrower's filing of any bankruptcy proceedings; or

e) Any application for the appointment of a receiver for Borrower.


Article 3 - 8822585588 88555:

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Article 4 - GENERAL PROVISIONS:

a) GOVERNING LAW: This Promissory Note shall be governed in all respects by the laws of the state of Alabama and any applicable federal law. Borrower consents to jurisdiction under the state and federal courts within the state of Alabama. Borrower agrees that this choice of law, venue, and jurisdiction provision is not permissive, but rather mandatory in nature.

b) AMENDMENTS: This Promissory Note may only be amended in writing signed by both Parties.

c) ASSIGNMENT: This Promissory Note, or the rights granted hereunder, may not be assigned, sold, leased or otherwise transferred in whole or part by Borrower.

d) NOTICE: Notice shall be given to either Party at the addresses listed at the top of this document, through certified mail, return receipt requested or at the following email addresses. Notice is deemed given when sent.

Borrower: ________

Lender: ________

e) BINDING: This Promissory Note will inure to the benefit of and be binding upon the respective successors, assigns, heirs, executors and/or administrators of Borrower.

f) HEADINGS: Headings to this Promissory Note are for convenience only and shall not be construed to limit or otherwise affect the terms of this Promissory Note.


EXECUTION:

BORROWER:

Name: ________

Signature: _________________________

Date:_____________________________

State of Alabama

County of: ______________________________

On this _____ day of ________________________________________, 20__, before me, personally appeared _____________________________________________, to me known to be the person described in and who executed the foregoing instrument, and acknowledged that they executed it as their free act and deed.





__________________________________________________________________

Notary Signature, Printed Name, and Notary/Bar Roll Number

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Promissory Note

Alabama

Date: ________

Amount: $________

FOR VALUE RECEIVED, the undersigned borrower, ________, having a primary address at the following:

________

who shall hereinafter be known as "Borrower", hereby promises to pay lender, ________, having a primary address at the following:

________

who shall hereinafter be referred to as "Lender", the the sum of $________ (________) ("Principal Amount") with interest at the rate of ________% per annum ("Interest") on the unpaid principal in accordance with the terms and conditions set forth below.

Article 1 - TERMS OF REPAYMENT:

General Repayment: The Principal Sum plus all accrued interest will be paid back in full on ________ ("Due Date"). The Parties, between them, shall agree upon a payment method and structure, but the Borrower shall ensure that the entirety of the Principal Sum and all interest will be returned by the Due Date.

Past Due Interest: If the Due Date passes and the entirety of the Principal Sum with accrued interest has not been paid back, a higher interest rate of ________% per annum on the unpaid amount will be charged until all the funds owing are recouped in full.


Article 2 - DEFAULT:

The following events constitute default of this Promissory Note and upon their occurrence, the entirety of any remaining amount due shall become immediately payable:

a) Borrower's insolvency;

b) Borrower's death, incompetency; liquidation, or dissolution;

c) Borrower's making of a general assignment for the benefit of Borrower's creditors;

d) Borrower's filing of any bankruptcy proceedings; or

e) Any application for the appointment of a receiver for Borrower.


Article 3 - 8822585588 88555:

552585 252 82552825 5225582 22 8222822822 522 2888252822 822258225 882582 2588 2522888252 8222, 828855822, 852 222 8828225 22, 82 522 22 252 8858528252828 82 252 8225582 252888822 28855, 252 222525 252 5288552 252 222852 522522 522582822 552 82225852282. 822 525 588 82828 25 25222828 82855525 82 252 222525 82 222258822 252 28882528228 22 2588 2522888252 8222 58 5 528582 22 85225'8 5225582, 828855822 522 82258 2228 25 82828, 8888 82 55525 22 252 522582822 522522 552 525 2582 82 2585 82225852282 82 252 82552825.


Article 4 - GENERAL PROVISIONS:

a) GOVERNING LAW: This Promissory Note shall be governed in all respects by the laws of the state of Alabama and any applicable federal law. Borrower consents to jurisdiction under the state and federal courts within the state of Alabama. Borrower agrees that this choice of law, venue, and jurisdiction provision is not permissive, but rather mandatory in nature.

b) AMENDMENTS: This Promissory Note may only be amended in writing signed by both Parties.

c) ASSIGNMENT: This Promissory Note, or the rights granted hereunder, may not be assigned, sold, leased or otherwise transferred in whole or part by Borrower.

d) NOTICE: Notice shall be given to either Party at the addresses listed at the top of this document, through certified mail, return receipt requested or at the following email addresses. Notice is deemed given when sent.

Borrower: ________

Lender: ________

e) BINDING: This Promissory Note will inure to the benefit of and be binding upon the respective successors, assigns, heirs, executors and/or administrators of Borrower.

f) HEADINGS: Headings to this Promissory Note are for convenience only and shall not be construed to limit or otherwise affect the terms of this Promissory Note.


EXECUTION:

BORROWER:

Name: ________

Signature: _________________________

Date:_____________________________

State of Alabama

County of: ______________________________

On this _____ day of ________________________________________, 20__, before me, personally appeared _____________________________________________, to me known to be the person described in and who executed the foregoing instrument, and acknowledged that they executed it as their free act and deed.





__________________________________________________________________

Notary Signature, Printed Name, and Notary/Bar Roll Number

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