UNSECURED PROMISSORY NOTE
THIS UNSECURED PROMISSORY NOTE (“Note”) is made as of [Date], by and between:
Borrower: [Borrower Name], residing at [Borrower Address]
Lender: [Lender Name], residing at [Lender Address]
WHEREAS
A. The Lender has agreed to loan certain funds to the Borrower, and
B. The Borrower promises to repay the loan under the terms set forth below.
NOW, THEREFORE, the parties agree as follows:
1. Principal Amount
The Borrower promises to pay the Lender the principal sum of [Loan Amount] ([Loan Amount in Words]), together with interest as specified below.
2. Interest Rate
The outstanding principal shall bear interest at a rate of [Interest Rate]% per annum, calculated on a [simple/compound] interest basis.
3. Payment Terms
- Repayment Schedule: The Borrower shall repay the principal and interest as follows:
- [Describe payment schedule, e.g., monthly installments of [Amount] starting on [Start Date], or lump sum payment on [Maturity Date]].
- Method of Payment: All payments shall be made by [payment method, e.g., bank transfer, check, etc.] to the Lender at [Lender Payment Address or Account Details].
4. Prepayment
The Borrower may prepay all or any portion of the outstanding principal and accrued interest at any time without penalty. Any prepayment shall first be applied to accrued interest and then to principal.
5. Late Payment
If any payment is not made within [Number of Days] days after its due date, the Borrower shall pay a late fee of [Late Fee Amount or Percentage], in addition to the overdue amount.
6. Default
- Events of Default: The following shall constitute an event of default:
- Failure to make any payment when due;
- Borrower becomes insolvent or files for bankruptcy;
- Any representation made by Borrower is found to be false or misleading.
- Remedies on Default: Upon default, the Lender may declare the entire unpaid principal and accrued interest immediately due and payable.
7. Waivers
No delay or omission by the Lender in exercising any right shall operate as a waiver of that right or any other right under this Note.
8. Assignment
Neither party may assign or transfer this Note or any rights hereunder without the prior written consent of the other party.
9. Notices
Any notice required or permitted under this Note shall be in writing and delivered to the parties at their respective addresses stated above (or such other address as either party may designate in writing).
10. Governing Law
This Note shall be governed by and construed in accordance with the laws of [Governing Law State/Country].
11. Severability
If any provision of this Note is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
12. Entire Agreement
This Note constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior understandings or agreements.
13. Amendment
Any amendment to this Note must be in writing and signed by both parties.
14. Disclaimer
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Unsecured Promissory Note as of the date first written above.
Lender:
Signature: ___________________________
Name: [Lender Name]
Date: [Date]
Borrower:
Signature: ___________________________
Name: [Borrower Name]
Date: [Date]
