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

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PROMISSORY NOTE
(SHORT FORM)

          The undersigned, Ron Leonard1 (debtor or first party), of 8338 San Elena Dr., Los Angeles, California2 (first party's address) hereby agrees to pay the sum of $6,0003 to Robert Loxly4 (creditor or second party) of 667 Pacific Coast Parkway, San Diego, Californai5 (second party‚Äôs address), plus interest from the 1st day of June, yr19966, at the rate of 10%7 per annum in consideration of: (here state the reason such as money loaned, etc.) Repayment shall be made according to the following schedule8:

July 1, 1996 - $2,000(amount of payment)8
August 1, 1996 - $2,000(amount of payment)
September 1, 1996 - $2,000(amount of payment)

          Interest due at the time of payment shall be deducted first; then the remainder of the payment shall be applied to principal. Upon failure to pay when due, Ron Leonard9 (first party) shall be immediately obligated to pay the full amount of principal, all interest plus costs and attorney fees, if any, incurred for recovery by Robert Loxly10 (second party).

          This Note is subject to the laws of the State of California11.

          Dated this 1st day of June, yr199612Los Angeles, California13 (location where note is signed).

 

                                                                                     
Witness Signature14 Signature of Debtor/First Party15
                                          
Address of Debtor/First Party16

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright © 1994 - 2015 by LAWCHEK, LTD.

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

  1. An arbitrary name for the debtor party has been selected.  Generally, the short form promissory note is used for minimal amounts of sums that are borrowed.  Usually, the short form promissory note is used between individuals who know each other and acknowledge a short-term loan for repayment within a fairly short period of time.

  2. The address of the debtor should be set forth.

  3. The principal sum of the note.

  4. The name of the creditor or second party to whom the note is given for the sums received.

  5. The address of the party who loaned the sums to the debtor.

  6. The date from which interest should run.  Often, this is the same date the document is signed.

  7. The rate of interest that is charged should be set forth.  This is regulated by state statute and, for that reason, an attorney should be consulted.

  8. A repayment schedule is set forth.

  9. The name of the party borrowing is set forth.

  10. The name of the party loaning the funds is set forth.

  11. The state under which the laws apply to the document is set forth. Many times variations of this agreement will exist from state to state; therefore, this document must be reviewed by an attorney.

  12. The date on which the document was signed.

  13. The location where the document was signed.

  14. The signature of a witness should be placed at this juncture.  However, many times verification or, in other words, signature before a Notary Public may be necessary before the promissory note may be valid.  Therefore, an attorney should be consulted.

  15. The signature of the debtor.

  16. The address of the debtor.

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright © 1994 - 2015 by LAWCHEK, LTD.

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