Promissory Note
$ ____________________
_______________, 20__
FOR VALUE RECEIVED, _________________________ promises to pay to
_________________________, his heirs, successors and assigns, the principal sum of
_____________________________ ($_______), together with interest from the date hereof on
the unpaid balance at the initial rate of _______% per annum (“Initial Interest Rate”), principal
and interest shall be payable in equal monthly installments of $______ each, beginning on
_______________, 20__, and continuing on the ___th day of each and every month thereafter
until _______________, 20__, and continuing on the ___th day of each and every month
thereafter, in equal monthly installments of principal and interest determined
ned in accordance with
the terms of this Note until the principal and interest thereon shall have been fully paid, the
yable _______________,
__________
entire unpaid balance of principal and interest to be due and payable
20__.
________
inte
Each monthly installment payment shall be applied first too the payment of interest
on the
principal unpaid and the balance to the payment of principal.
ncipal. Each year, on the ___th
__
___ day of
modifi (but
__________, beginning on _______________, 20__, Initial Interest
est Rate shall be modified
mo
may not ever be less than _____%, the “Minimum
_____%, the
mum Interest
rest Rate,” or more than ______%
“Maximum Interest Rate”) to the amount off the arithmetic
rate of interest
hmetic mean of the prime
p
reported in The Wall Street Journal for _______________
___________ of each such year (or if
nday or holiday, the prime rate of interest reported for the
______________ is a Saturday, Sunday
unday or holiday).
next day that is not a Saturday, Sunday
e
l
p
m
a
S
st rate, the
he Minimum Interest
Interest Rate, or the
th Maximum Interest Rate,
The modified interest
pplicable, shall be the interestt rate of this Note
No for the next 12-month period
whichever shall be applicable,
h such date
ate during the term of this Note com
beginning on each
commencing _______________, 20__.
hange in the interest rate shall be m
duri the period beginning _______________,
No change
made during
nd ending _______________, 20_
20__ and
20__.
chang in the interest
intere rate, the amount of each monthly installment payable
Whenn there is a change
reased
sed or decreased
decre
shall be increased
to an amount which, when paid in equal monthly installments of
interest, will
w be sufficient
s
principal and interest,
to amortize the then unpaid principal together with
interest thereon at the chang
changed rate over the unexpired term of the Note. The term of this Note
payabl in 120 monthly installments, determined in accordance with the terms
shall be 10 years payable
of this Note. The first installment shall be due _______________, 20__, and the last installment
shall be due _______________, 20__. Notice of any change in interest rate and the amount of
the monthly installment shall be given by the holders of this Note and shall be deemed made
when deposited in the United States mail, postage prepaid addressed to
_________________________, ___________________________________. Such notice shall
be given within ten (10) days after ______________ of each year commencing on
_______________, 20__.
In the event The Wall Street Journal shall cease as a daily newspaper publication or
discontinue reporting the prime rate of interest, the Initial Interest Rate shall be modified to the
amount of the prime rate of interest charged by _________________________ (or its successors
or assigns), in accordance with the terms of this Note, but not less than the Minimum Interest
Rate or more than the Maximum Interest Rate.
All sums due hereunder shall be payable to _________________________ at the following
address:
or at such other place as _________________________, his heirs, successors and assigns may
specify in writing.
e
l
This Note is secured by a security agreement by _________________________,
to
______
_________________________
dated
this
day
on
property
of
certain
_________________________,
a
guarantee
by
_________________________,
_______________
________
_________________________
and
________________________
to
___________________
__________________
_________________________ dated this date; a mortgage
__________________________
age by __________________
___________________
to _________________________ dated this date (all referred to ass “Collateral Agreem
Agreements”) and
Agreement
all of the terms and conditions of the Collateral Agreements
a
m
nts are incorporated herein and made
part hereof.
p
m
a
__________
an installment of
In the event _________________________
of any
__ shall default in payment
pay
principal or interest when the same
hereunder and such default
ame shall become due and payable hereund
shall not be cured within thirty
irty (30) days, then
the the
No may, at their option,
he holders of this Note
declare the entire principal
ipal of thiss Note due and
and payable, together
toge
togeth with all accrued interest
thereon.
S
It is hereby
__________________________ shall become insolvent,
eby agreed that in the event ____
_____________
oluntary petition in bankruptcy, or if a petition
peti
or file a voluntary
in bankruptcy shall be filed against it, or
if any application
plication for receivership of any nature be filed or a receiver be appointed of its property
or assets,
s,, then the principal of this
thi Note and all unpaid interest shall forthwith be due and
payable.
_________
________________ may, at its election, upon not less than thirty (30) days’ prior
_________________________
pena all of the unpaid principal hereof. Upon such prepayment it shall
notice, prepay without penalty
est accr
also pay the interest
accrued on the principal amount to the date of the prepayment.
Notice of dishonor, protest and notice of protest are hereby waived.
This Note is non-negotiable.
Dated: _______________, 20__.
_______________________
By: _________________________
Its President
2