I F A U: Nstructions or N Nsecured
I F A U: Nstructions or N Nsecured
I F A U: Nstructions or N Nsecured
For An
Unsecured
Promisory Note
(A Legally Binding IOU)
Instructions for an
Unsecured Promissory Note
Secured v Unsecured
Enforcing a Note
If the lender defaults or fails to repay the loan as
agreed, the borrower can ask the courts to help enforce
the contract. Having a promissory note goes a long
way to proving the money was lent and the terms of
repayment. A court can help a borrower enforce the
terms of the contract through garnishment of wages or
attachment of assets.
Terms
The terms of the loan are subject to agreement by
the parties. The law permits a lender to charge a
reasonable interest rate based upon the situation. The
parties can agree that the loan be repaid all at once on
a given date or upon the occurrence of an event. In the
alternative, the parties can agree that the loan shall be
repaid over time, say weekly, monthly, or any other
agreed upon time period.