An Alabama Promissory Note Installment is a legal agreement between two people (the lender and the borrower). It serves as a record of a loan and outlines how it will be paid back, including any interest.
Promissory notes may be secured or unsecured.
- If the borrower does not repay a debt as arranged, a secured promissory note permits the lender to take something of value. For example, if you’ve entered into a payment agreement to purchase a car and you promised to pay for the car, failure to keep your promise gives the financier the right to take possession of the vehicle.
- An unsecured promissory note means that the lender cannot take something of value if the borrower failed to pay them back for the loan. Thus, the lender would have to take advantage of other legal remedies.
Usury laws apply to AL Promissory Note Installment, meaning the amount of interest that can be charged is governed by the state’s usury regulations. For a one-year promissory note, the law allows for a maximum interest rate of 6%. The maximum interest rate for promissory notes with a term of more than one year is 8%. However, a promissory note must be worth at least $100 for a lender to charge interest.
The standard components of an Alabama Promissory Note Installment Template include the:
- Date the promissory note is created
- Name and address of the borrower
- Name and address of the lender
- Amount of money lent to the borrower
- Amount of interest charged on the principal amount
- Number of payments required to repay the loan
- Amount of each payment
- When each payment is due
- Where to send the payment
- How the payment should be made (by check or money order)
If you’re making a secured Promissory Note Installment in Alabama, you’ll need to include language that states the loan is secured. It should also include a description of the security property.
Both unsecured and secured Alabama Promissory Note Installment Form must be signed. Only the borrower is required by law to sign and date the agreement. However, it’s possible that the lender will want to sign and date it as well. If the agreement has a co-signer, they should also sign and date it. Although having the promissory note notarized is not required by law, it may be beneficial in the event of a lawsuit.
Using PDFRun, you can electronically fill out and download a PDF copy of the Alabama Promissory Note Installment PDF in minutes. Fill it out by following the instructions below.
Enter the agreement date following the format: Month, Day, Year.
Enter the borrower’s full name.
Enter the borrower’s complete address, including street number, city, state, and ZIP code.
Enter the payee’s full name.
Place for Payment
Enter the place for payment.
Enter the principal amount of the loan.
Enter the term of the loan.
Enter the amount of monthly payments.
This section states that the annual interest rate on matured, unpaid amounts shall be subject to interest at (enter the percentage) percent per annum, but not to exceed the maximum amount of interest permitted by the laws of the state of Alabama.
This section states that this promissory note is due and payable as follows, to-wit: (enter the number of payments in words) (enter the number of payments in numbers) equal monthly payments of (enter the amount in dollars) principal. The first such payment due and payable on the first day of (enter the month and year), and a like installment shall be due and payable on the same day of each succeeding month thereafter until the total principal of (enter the amount in dollars) principal is paid in full. If each payment is not paid on time, the remaining balance will be subject to interest at (enter the percentage) percent per annum, but not to exceed the maximum amount of interest permitted by the laws of the state of Alabama.
Borrower’s Prepayment Right
This section states that the borrower reserves the right to prepay this promissory note in whole or in part, prior to maturity, without penalty.
Place for Payment
This section states that the borrower promises to pay to the order of the payee at the place for payment and according to the terms for payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment date.
Default and Acceleration Clause
This section states that if the borrower defaults in the payment of this promissory note or in the performance of any obligation, and the default continues after the payee gives the borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then the payee may declare the unpaid principal balance and earned interest on this promissory note immediately due.
This section further states that the borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law.
Interest on Past Due Installments and Charges
This section states that all past due installments of principal and/or interest and/or all other past-due incurred charges shall bear interest after maturity at the maximum amount of interest permitted by the laws of the state of Alabama until paid. Failure by the borrower to remit any payment by the 15th day following the date that such payment is due entitles the payee hereof to declare the entire principal and accrued interest immediately due and payable.
This section further states that the payee’s forbearance in enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or remedy for a subsequent cause, breach or default of the borrower’s obligations herein.
This section states that the interest on this debt evidenced by this promissory note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of the maximum shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides other provisions in this instrument (and any other instruments) concerning this debt.
Form of Payment
This section states that any check, draft, money order, or other instrument given in payment of all or any portion thereof may be accepted by the holder and handled in collection in a customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the payee and applied to this indebtedness in the manner elsewhere herein provided.
This section states that if this promissory note is given to an attorney for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceedings, then the borrower shall pay the payee all costs of collection and enforcement, including reasonable attorney’s fees and court costs in addition to other amounts due.
This section states that if any provision of this promissory note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this promissory note nor the application of the provision to other persons, entities, or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.
This section states that the covenants, obligations, and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.
This section states that the descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this promissory note.
This section states that the pronouns used herein shall include, where appropriate, either gender or both, singular and plural.
This section states that this promissory note shall be governed, construed, and interpreted by, through and under the laws of the state of Alabama.
Enter the execution date following the format: Day, Month, Year.
By signing, the borrower agrees to his or her responsibilities for all the obligations represented in this promissory note.
Affix the borrower’s signature.
Borrower’s Printed Name
Enter the borrower’s full printed name.
Is an installment note a promissory note?
An installment note is a promissory note that provides for the repayment of a debt in equal payments at fixed intervals. The payments may be interest only, or they may include principal and interest. The interval between payments is typically monthly, but other intervals are possible. The term of an installment note may be anywhere from a few months to several years.
Installment notes are often used in consumer lending, such as auto loans and home loans. They may also be used in business lending. Installment notes typically have a lower interest rate than other types of promissory notes, such as demand notes or balloon notes. This is because the borrower's payments are spread out over time, which reduces the lender's risk.
Installment notes are also sometimes referred to as amortizing notes or mortgage notes.
How do I make a promissory note payment?
A promissory note is a legal document that outlines the terms of a loan. This includes the amount of money being borrowed, the interest rate, and the date by which the loan must be repaid. The promissory note will also list any collateral that has been pledged as security for the loan.
Making a payment on a promissory note is much like making any other type of loan payment. The borrower will typically have to make regular payments of principal and interest, and may be required to pay off the entire loan balance in one lump sum at the end of the term. Depending on the terms of the promissory note, the borrower may also be required to make periodic payments of fees or other charges. If you are unsure of the payment terms of your promissory note, you should consult with an attorney or financial advisor.
In general, here are the steps to making a promissory note payment:
- Determine the amount of the payment — This will usually be a combination of principal and interest, plus any fees or charges that are due.
- Make the payment on time — Promissory notes typically have strict repayment terms, so it is important to make payments on time in order to avoid defaulting on the loan.
- Pay by check or money order — Most promissory notes will require payments to be made by check or money order. Be sure to include your account number and the payee information on the check or money order so that your payment can be properly applied to your account.
- Send the payment to the correct address — The address for making promissory note payments will be listed on the documents that you received when you took out the loan. If you are unsure of the address, you can usually find it by looking up the contact information for the lender online.
- Keep records of your payments — It is important to keep track of all payments that you make on your promissory note in case there is ever a question about whether or not a payment was made. Be sure to keep copies of any checks or money orders that you use to make payments, and make a note of the date, amount, and payee for each payment in a notebook or on your computer.
Making timely and accurate payments on a promissory note is essential to avoid defaulting on the loan. If you have any questions about the terms of your promissory note or how to make a payment, be sure to consult with an attorney or financial advisor.
How do Installment notes work?
Installment notes are a type of debt instrument that allows borrowers to make payments on a loan over time. The borrower pays periodic interest payments to the lender, and the principal balance of the loan is due at the end of the term. Installment notes are typically used for larger loans, such as mortgages and auto loans.
As with any loan, the borrower should carefully consider the terms of the installment note before signing. The borrower should make sure they can afford the periodic payments and that they are comfortable with the interest rate. The interest rate on an installment note may be fixed or variable, so it is important to understand how this will affect your payments over time.
If you are considering taking out an installment note, it is important to shop around and compare offers from different lenders. Be sure to compare the interest rate, fees, and terms of different loans before you decide which one is right for you. Installment notes can be a great way to finance a large purchase, but it is important to understand the terms of the loan before you sign on the dotted line.
What happens if a promissory note is not paid?
If a promissory note is not paid, the creditor may pursue legal action to collect the debt. This could involve filing a lawsuit and obtaining a judgment against the borrower. If the borrower fails to pay the judgment, the creditor may take steps to collect the money, which could include garnishing wages or seizing assets.
In cases where the promissory note is secured by collateral, the creditor may also have the right to repossess the property.
Avoiding default on a promissory note is important to protect your credit score and avoid costly legal action. If you're having trouble making payments, reach out to the creditor as soon as possible to discuss your options.
Is a promissory note a promise to pay?
A promissory note is a legally binding document that contains a promise to pay a certain amount of money to a specific person or entity. Promissory notes are often used in situations where one party wishes to borrow money from another party. The borrower (the person who is borrowing the money) signs the promissory note and promises to repay the loan by a certain date. The lender (the person who is lending the money) holds onto the promissory note as collateral for the loan. If the borrower doesn't repay the loan on time, the lender can use the promissory note to collect the money that is owed.
How do you enforce a promissory note?
There are a few ways to enforce a promissory note:
- You can take the debtor to court and get a judgment against them — When you have a judgment, you can then use various methods to collect on that judgment, including wage garnishment, bank account levies, and property liens.
- You can try to negotiate with the debtor — This could involve working out a payment plan or agreeing to accept less than the full amount owed.
- You can sell the debt to a collection agency — This will likely mean that you'll receive less than the full amount owed, but it's a way to get some money back and relinquish all responsibility for collecting the debt.
- You can contact a debt settlement company — These companies will typically try to negotiate with the debtor on your behalf in order to settle the debt for less than what is owed.
- You can contact a debt relief company — These companies will typically work with the debtor to reduce the amount of debt owed or set up a payment plan.
- You can file a claim with your state's small claims court — This is typically only an option if the amount you are owed is $5,000 or less.
- You can file a lawsuit against the debtor — This could be an option if you have a contract or another document that spells out what would happen if the debtor didn't repay the loan. It's also important to note that filing a lawsuit can be expensive and time-consuming, so it's not always practical.
- You can contact the debtor's employer — If the debtor is employed, you may be able to garnish their wages in order to repay the debt.
- You can contact the debtor's bank — If the debtor has a bank account, you may be able to levy it in order to collect on the debt.
- You can put a lien on the debtor's property — This could involve putting a lien on their home, car, or other assets.
- You can contact the debtor's friends or family members — This could potentially embarrass the debtor and motivate them to repay the debt.
- You can contact the media — This could potentially embarrass the debtor and put pressure on them to repay the debt.
- You can contact the Better Business Bureau — This could potentially embarrass the debtor and put pressure on them to repay the debt.
- You can contact the Federal Trade Commission — The FTC can help you gather information about the debtor and their assets, which may be helpful in collecting on the debt.
- You can contact your state's attorney general — The attorney general's office can help you gather information about the debtor and their assets, which may be helpful in collecting on the debt.
- You can post a notice on social media — This could potentially embarrass the debtor and put pressure on them to repay the debt.
- You can contact a debt collector — A professional debt collector may be able to help you collect on the debt.
- You can contact a private investigator — A private investigator may be able to help you locate the debtor and their assets, which could be helpful in collecting on the debt.
- You can file a complaint with the Consumer Financial Protection Bureau — The CFPB can help you gather information about the debtor and their assets, which may be helpful in collecting on the debt.
- You can contact your local police department — The police department may be able to help you locate the debtor and their assets, which could be helpful in collecting on the debt.
As you can see, there are a number of options available to you if you're trying to collect on a debt. It's important to remember that each situation is unique, so you'll need to weigh all of your options and decide what's best for you.
If you're not sure where to start, we recommend contacting a professional debt collector or private investigator. They'll be able to help you locate the debtor and their assets, which could be helpful in collecting on the debt.
Does a promissory note need to be recorded?
No, a promissory note does not need to be recorded. However, if the note is secured by collateral, such as a deed of trust or mortgage, then the security instrument will need to be recorded.
Is a promissory note valid if it is not notarized?
There is no requirement that a promissory note be notarized in order for it to be valid. However, notarizing a promissory note may add an extra level of protection for the lender in the event that the borrower tries to deny the existence of the debt.
If the promissory note is notarized, the borrower will have to provide clear and convincing evidence that the signature on the document is not their own in order to successfully contest the debt.
Notarization also serves as a witness to the signing of the document, which can be helpful if there is ever any dispute about when or where the document was signed.
How do you legally forgive a promissory note?
You can legally forgive a promissory note by canceling it or by giving the borrower a new document that releases them from their obligation to repay the debt. You should consult with an attorney before taking any action to forgive a promissory note to ensure that you do not inadvertently create any new legal liabilities for yourself or the borrower.
To legally forgive a debt, you must take affirmative action to cancel the promissory note or give the borrower a new document that releases them from their obligation to repay the debt. Once the debt is forgiven, the borrower is no longer legally obligated to repay it and you cannot attempt to collect on the debt.
You should consult with an attorney before taking any action to forgive a promissory note to ensure that you do not inadvertently create any new legal liabilities for yourself or the borrower. Depending on your state's laws, there may be specific requirements for how you must go about forgiving a debt, so it is important to get professional guidance before taking any action.
Can a promissory note be canceled?
Yes, a promissory note can be canceled. However, doing so may require the consent of both parties to the agreement. Additionally, there may be fees associated with canceling the promissory note. Be sure to review your agreement carefully before taking any action.
In general, the process of canceling a promissory note will involve the following steps:
- Notify the lender in writing of your intention to cancel the note.
- Include any relevant documentation, such as a copy of the original promissory note, with your request.
- Send the notice and documentation to the lender via certified mail with return receipt requested. This will provide you with proof that the lender received your notice.
- The lender may require you to repay the outstanding balance on the loan in full before canceling the promissory note. If this is the case, be sure to get written confirmation from the lender that the debt has been repaid in full before taking any further action.
- Once the lender has canceled the promissory note, be sure to get written confirmation of this from the lender. This confirmation can be used as proof that the debt has been satisfied in the event that any questions or issues arise in the future.
These are general instructions for canceling a promissory note. Be sure to review your agreement carefully before taking any action, as the terms of your agreement may vary. If you have any questions, be sure to contact an attorney or other legal professional for assistance.
How is an installment note different than a note payable?
An installment note is a loan that is repaid in equal payments over a fixed period of time, while a note payable is a loan that is repaid in one lump sum. An installment note typically has a lower interest rate than a note payable, and the borrower may be able to repay the loan without penalty.
Does a promissory note affect your credit?
A promissory note is a legal document that outlines the terms of a loan agreement. This includes the amount of money being borrowed, the interest rate, and the repayment schedule. A promissory note is typically used for personal loans, but can also be used for business loans. When you sign a promissory note, you are promising to repay the loan in accordance with the terms laid out in the document.
If you default on a loan that is secured by a promissory note, your lender may take legal action against you to collect the money owed. This could include filing a lawsuit or initiating foreclosure proceedings. If the lender is successful in collecting the money owed, it will be reported to the credit bureaus and will appear on your credit report. This could potentially damage your credit score and make it more difficult to obtain future loans.
If you are considering taking out a loan, be sure to carefully read and understand the promissory note before signing it. This will help you avoid any potential problems down the road.