The North Dakota Promissory Note is a legal document used for money-lending transactions that lay out the terms and conditions. This Note states that the Lender has reimbursed a loan, and the Borrower shall return the amount of the loan plus interest, if any.
You may download a PDF copy of the State of North Dakota Promissory Installment Note from websites that offer document templates. But you may electronically fill it out on PDFRun for your convenience.
Enter all necessary information in the Promissory Installment Note North Dakota. Make sure that everything you enter is true, accurate, and correct.
Enter the date.
Enter the borrower’s full legal name.
Enter the borrower’s complete address.
Enter the full legal name of the payee.
Place for Payment
Enter the complete place for payment.
Enter the principal amount in dollars ($).
Enter the term of payment.
Enter the monthly payments in dollars ($).
This paragraph states that the annual interest rate on matured and unpaid accounts shall be subject to a percentage per annum indicated here. But such interest shall not exceed the maximum amount of interest permitted by the North Dakota Laws.
Enter the interest percent per annum.
This paragraph states that the Note is due and payable on the number of payments and equal monthly payments indicated. It states further that the first payment will be due and payable on the first day of the month and installment shall also be due and payable on the same day of each succeeding month until the total principal amount is paid in full.
But if the payment is not made on time, the remaining balance shall be subject to an interest per annum but will not exceed the maximum interest permitted by the State of North Dakota Laws.
Number of payments
Enter the number of payments.
Enter the amount of equal monthly payments.
First Due Payment
Enter the first payment due and payable.
Enter the principal amount.
Interest Per Annum
Enter the interest per annum.
Borrower’s Prepayment Right
This paragraph states that the borrower reserves the right to prepay this Note wholly or partially, before maturity, without penalty.
Place for Payment
This paragraph states that the borrower promises to pay to the order of the Payee at the place for payment indicated in this note and in accordance with the terms, the payment of the principal amount plus interest. The unpaid amounts shall be due by the final scheduled payment date.
Default and Acceleration Clause
This paragraph states that if the Borrower defaults in the payment or the performance of any obligation, and the default continues after Payee gives him a notice of default and the time within which it must be settled, the Payee may declare the unpaid principal balance and earned interest immediately due.
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 paragraph states that all past due installments of the principal, interest, and other past-due incurred charges shall bear interest after maturity at the maximum interest permitted by North Dakota Laws until paid.
Should the Borrower fail to remit any payment by the 15th day following the date of such payment, the Payee is entitled to declare the entire principal and accrued interest immediately due and payable. The Payee’s forbearance in enforcing a remedy or right shall not be deemed a waiver of said remedy or right for a subsequent cause, default, or breach of the Borrower’s obligations.
The interest on this debt shall not exceed the maximum non-usurious interest that may be contracted for, taken, reserved, charged, or received under the law. Any interest over the maximum shall be credited on the principal of the debt or refunded if it has been paid.
This paragraph also states that on any acceleration or required or permitted prepayment, the excess shall be canceled automatically, credited to the principal, or refunded. This provision overrides other provisions in this Note about this debt.
Form of Payment
This paragraph 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 customarily handled in the collection.
However, the same shall not constitute payment or diminish any rights of the holder 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 provided in this Note.
This paragraph states that if this Promissory Installment Note North Dakota is given to an attorney for collection or enforcement, or if the suit is brought for the collection or enforcement, or collected or enforced through probate, bankruptcy, or other judicial proceedings, the Borrower shall pay all costs of collection and enforcement to the Payee. This also includes reasonable attorney’s fees and court costs.
This paragraph states that if any provision of this Note becomes invalid or unenforceable, the rest of this Note and the application of the other provisions to other persons, entities, or circumstances shall not be affected, but instead they shall be enforced to the maximum extent permitted by law.
The obligations, conditions, and covenants contained in the Note shall be binding and will inure to the benefit of the heirs, legal representatives, and assigns of the parties.
The descriptive headings in this Note are used for the convenience of reference only. They are not intended to produce any effect in determining the rights or obligations provided in this Note.
This paragraph states that the pronouns used in this Note, where appropriate, shall include either gender or both singular and plural.
The governing law of this Note is the Laws of the State of North Dakota.
Enter the date this note is executed.
Affix your signature.
Borrower’s Printed Name
Enter your full printed name.
What happens if you don't pay back a promissory note?
If you don't pay back a promissory note, the person or institution who lent you the money can take legal action against you. This could result in several consequences:
- The lender could sue you and try to collect the money that you owe through the court system.
- The lender could take possession of any collateral that you pledged as security for the loan.
- The lender could report your debt to credit agencies, which would damage your credit score.
If you're unable to repay a promissory note, it's important to talk to the lender as soon as possible. They may be willing to work with you to develop a repayment plan that works for both parties. If you don't communicate with the lender, they may take legal action against you, which could have serious financial consequences.
You should always consult with an attorney before signing a promissory note to make sure that you fully understand your legal obligations.
How do you demand payments on a promissory note?
If you are the holder of a promissory note, you may demand payment at any time after the date specified in the note. To do so, you must send a written notice to the maker of the note (the person who signed it), demanding payment in full. The notice must include:
- The amount of money that is due and payable;
- The date on which payment is due;
- The name and address of the person to whom payment should be made; and
- A statement that if payment is not received within 10 days, legal action may be taken.
If the maker of the promissory note does not make payment within the 10-day period, you may choose to file a lawsuit to collect the money that is owed. If you prevail in the lawsuit, the court may order the maker of the promissory note to pay you the amount that is due, plus interest and attorneys' fees.
What makes a promissory note invalid?
There are a few things that can make a promissory note invalid:
- If the note is not in writing — "In writing" means that the terms of the agreement must be set out in a physical document that can be read and understood by both parties. This is also sometimes referred to as "signed writing." There are cases when digital documents (like emails) can be considered "in writing." The note must also be signed by the person who is promising to pay (the "maker") in order for it to be valid.
- If the note doesn't have a specific date — The date is important because it establishes when the debt is due. Without a date, there is no way to know when the debt is supposed to be paid back.
- If the note isn't properly witnessed — In some cases, a promissory note must be witnessed by a third party in order to be considered valid. This requirement varies from state to state, so it's important to check the laws in your jurisdiction.
- If the note doesn't have a proper description of the amount owed — The note must specify the amount of money that is owed, in order to avoid any confusion down the road.
- If the note isn't properly signed — In order for a promissory note to be valid, it must be signed by the person who is promising to pay the debt (the "maker"). If the note isn't signed, it's not legally binding.
These situations make a promissory note invalid, which means that the person who is owed the money can't enforce the debt in court. However, this doesn't mean that the debt disappears — the person who owes the money is still responsible for paying it back, even if the promissory note isn't legally binding.
What is the difference between a straight note and an installment note?
The biggest difference between a straight note and an installment note is that with a straight note, the borrower pays back the entire loan amount in one lump sum at the end of the loan term, while with an installment note, the borrower repays the loan in smaller payments (installments) over time.
This makes installment notes more flexible and easier to repay than straight notes. Interest on installment notes is generally lower than on straight notes because the lender can collect interest throughout the life of the loan. Also, installments typically have a shorter term than straight notes, meaning that borrowers will pay less interest overall.
Another key difference between the two types of notes is that installment notes are often secured by collateral, while straight notes are not.
Collateral is an asset (such as a car or piece of property) that the borrower agrees to put up as insurance in case they default on the loan. This gives the lender some security in case the borrower is unable to repay the loan. Straight notes are unsecured, which means that there is no collateral backing up the loan and therefore no risk for the borrower if they default.
Finally, installment notes typically have higher interest rates than straight notes because they are considered to be riskier for lenders. This is because borrowers who take out installment loans are more likely to default than those who take out straight loans.
In conclusion, the biggest difference between a straight note and an installment note is the repayment schedule, with installment notes typically having shorter terms and lower interest rates. Installment notes are also often secured by collateral, while straight notes are not. However, because they are considered to be riskier for lenders, installment notes usually have higher interest rates than straight loans.
What is the difference between a promissory note and a loan agreement?
A promissory note is a binding agreement between two parties in which one party agrees to provide a sum of money to the other party, and the second party agrees to repay that sum of money at a later date.
A loan agreement is a more formalized contract between two parties in which one party agrees to provide a sum of money to the other party, and the second party agrees to repay that sum of money over time, usually with interest.
Both promissory notes and loan agreements can be used to document loans between individuals, businesses, or other organizations. They are both legally binding contracts that outline the terms of the loan, including repayment schedule and interest rate. However, loan agreements are generally more detailed and complex than promissory notes, as they often involve multiple payments over time, collateral, and other provisions.
Is a promissory note legally binding?
Yes, a promissory note is a legally binding contract between two parties. This means that the person who signs the promissory note is legally obligated to repay the debt to the lender. If the borrower fails to repay the debt, the lender may take legal action against the borrower to collect the money owed.
As a legal contract, a promissory note contains certain information that is required by law. This includes the name and contact information of the borrower and lender, the amount of money borrowed, the interest rate (if any), the repayment schedule, and the consequences of default. This information is important because it sets out the rights and obligations of both parties.
While a promissory note is a legal contract, it is also important to remember that it is a debt obligation. This means that the borrower is responsible for repaying the debt to the lender. If the borrower fails to repay the debt, the lender may take legal action against the borrower to collect the money owed. Therefore, it is important to carefully consider all terms and conditions before signing a promissory note.
How do you legally enforce a promissory note?
If you have a promissory note that is not being paid, you may want to consider taking legal action to enforce the note. Depending on the circumstances, you may be able to file a lawsuit, request mediation, or take other measures to get the money you are owed. You should consult with an experienced attorney to discuss your options and determine the best course of action for your particular situation.
Does a promissory note go on your credit report?
Whether or not a promissory note shows on your credit report depends on the type of note. If the note is secured by collateral, such as a car or home, then it will likely appear on your credit report. An unsecured promissory note, however, will not usually show up on your credit report.
You can check your credit report to see if a promissory note is appearing on your report. If you find that it is, you can dispute the information with the credit bureau.
Can a promissory note be canceled?
Yes, a promissory note can be canceled. However, the process of canceling a promissory note can vary depending on the terms of the note and the agreement between the borrower and lender. If you are looking to cancel a promissory note, it is best to consult with an attorney to ensure that the process is done correctly.
In general, here are some ways to cancel a promissory note:
- Talk to the lender — In some cases, the borrower may be able to simply talk to the lender and explain their situation. The lender may then agree to cancel the note.
- Mutual agreement — If both the borrower and lender agree, they can sign a document that cancels the promissory note.
- Breach of contract — If the borrower breaches the terms of the promissory note, the lender may have the right to cancel the note.
- Unenforceable — A court may deem a promissory note unenforceable if it is not valid under state or federal law. This could happen if the terms of the note are illegal or if the note was not properly executed.
It is important to note that canceling a promissory note may have consequences for the borrower. For example, the borrower may be responsible for paying any remaining balance on the loan. The borrower may also be subject to late fees or penalties if the terms of the promissory note indicate that these will be assessed in the event of early termination. Therefore, it is important to understand all of the implications of canceling a promissory note before taking this step.
How can I recover my money from a promissory note?
There are certain situations in which you may be able to recover your money from a promissory note. For example, if the maker of the promissory note dies, you may be able to file a claim with the estate in order to recover the money that is owed to you. Additionally, if the maker of the promissory note files for bankruptcy, you may be able to file a claim with the bankruptcy court in order to recover the money that is owed to you.
If you are unable to recover your money from a promissory note using one of these methods, you may want to consider taking legal action against the maker of the promissory note. This can be a complicated process, so you should speak with an experienced attorney before taking any action.
Who keeps the original promissory note?
The original promissory note is typically kept by the lender. This is because the promissory note is a legal document that outlines the terms of the loan, and serves as evidence of the debt. The borrower may request a copy of the promissory note from the lender, but it is ultimately up to the lender to decide whether or not to provide a copy.
What is the difference between a demand note and a promissory note?
A demand note is a type of promissory note that typically provides for a shorter repayment period than a typical promissory note. Demand notes are often used in situations where there is a need for immediate funding, such as in the case of emergency expenses. Promissory notes are more commonly used for larger loans that are paid back over a longer period of time.
What are the two key parties to a promissory note?
The two key parties to a promissory note are the borrower and the lender. The borrower is the party who borrows money from the lender, and the lender is the party who loans money to the borrower. The promissory note is a contract between these two parties that outlines the terms of the loan, including the amount of money being borrowed, the interest rate, and the repayment schedule.
Is a promissory note valid if it is not notarized?
There is no definitive answer to this question since it can vary depending on the state in which the promissory note is being executed. However, in general, a promissory note is more likely to be considered valid if it is notarized, as this adds an extra level of authenticity and legitimacy to the document. If the promissory note is not notarized, the parties involved may still be able to enforce its terms, but it may be more difficult to do so. Ultimately, it is advisable to consult with an attorney in your state for specific guidance on this issue.
How do I know if a promissory note is valid?
There are a few key things to look for when determining whether a promissory note is valid:
- The note should be dated and signed by the borrower
- The note should list the amount of money borrowed, the interest rate, and the repayment schedule
- The note should be witnessed by a third party
- The note should be properly notarized
If you are unsure about the validity of a promissory note, it's best to consult with an experienced lawyer or financial advisor.
Is a handwritten promissory note legal?
Handwritten promissory notes are considered legal documents in many jurisdictions. However, there are some important things to keep in mind if you're considering using a handwritten promissory note:
- Make sure the note is dated and signed by both parties.
- Clearly state the amount of money that is owed, as well as the repayment terms.
- Keep a copy of the promissory note for your records.
- Have the note witnessed by a third party, such as a notary public.
- Be aware that some jurisdictions may require promissory notes to be filed with the court system.
If you have any questions about the legalities of handwritten promissory notes, it's best to consult with an attorney in your area.
Is an installment note a liability?
Yes, an installment note is a liability. This is because the issuer of the note agrees to make payments to the holder of the note over time. Therefore, the issuer has a financial obligation to the holder of the note. This obligation is reflected on the balance sheet as a liability.
Are there alternatives to promissory notes?
Yes, there are alternatives to promissory notes:
- Deed of trust — This type of document is typically used in mortgage transactions. A deed of trust transfers the title of the property to a third party, known as a trustee, who holds the property in trust for the benefit of the lender. If the borrower defaults on the loan, the trustee can sell the property to repay the debt.
- Mortgage — A mortgage is similar to a deed of trust in that it transfers the title of the property to a third party, known as a mortgagee, who holds the property in trust for the benefit of the lender. However, with a mortgage, the borrower has the right to redeem the property by paying off the debt.
- Security agreement — A security agreement is a contract between a borrower and a lender that creates a security interest in the borrower’s property. The security agreement can be used to secure a loan or line of credit, and it gives the lender the right to seize and sell the property if the borrower defaults on the loan.
- Personal guarantee — A personal guarantee is a contract between a borrower and a lender that makes the borrower personally responsible for repaying the debt. If the borrower defaults on the loan, the lender can sue the borrower to collect the debt.
- Having a cosigner — A cosigner is a person who signs a loan agreement along with the borrower. The cosigner agrees to repay the debt if the borrower defaults on the loan.
- Paying in cash — One alternative to borrowing money is to pay for the purchase in cash. This option may not be available to everyone, but it can be a good way to avoid taking on debt.
- Making a smaller purchase — Another alternative to borrowing money is to make a smaller purchase. This option may not be available for everyone, but it can be a good way to avoid taking on debt.
- Using a credit card — Another alternative to borrowing money is to use a credit card. This option may not be available for everyone, but it can be a good way to avoid taking on debt.
There are many alternatives to promissory notes, and the best option will depend on your individual circumstances. If you are considering taking out a loan, be sure to speak with a financial advisor to explore all of your options.