Promissory Note (OR)

A promissory note is a written promise from the borrower to repay a sum of money to a lender. This particular promissory note is intended for non-commercial use. It allows for more than one borrower, in which case, the borrowers will be jointly and severally liable (meaning that each are obligated to repay the entire amount owed under the note).

There are two different options on the type of note you can create:

• Term Note: This type of note has a fixed maturity date, i.e. a set date when all outstanding amounts under the note must be paid off in full.
• Demand Note: This type is due and payable when the lender requests it. The borrower can still make payments in installments, but this option gives the lender more flexibility to call in the loan when required.

There are also options for repayment: (i) no payments until maturity, (ii) monthly payments of interest only, or (iii) monthly payments of principal and interest.