__________________, 20_____          _____________, ____________
$_______. ____

_______________________, referred to herein as “MAKER”, agrees to pay to the Order of _______________________, referred to herein as “HOLDER”, or order, the sum of $____, (______________________________&___/100 Dollars), at __________________, _______________, _____________, with interest thereon at rate of ___% per annum, simple interest.

Said note shall be in due, unless earlier accelerated, in ______ installments, payable every _______, in the amount of $_____. 00   (____________________&__/100 Dollars). All payments received shall be credited first to interest and then to principal. Should MAKER fail to pay any installment when due, then HOLDER shall have the option to accelerate the payment of the full principal sum and accrued interest payable. HOLDER shall have the right for commercially reasonable causes, including but not limited to, the institution of litigation, the filing of tax liens, or any other objective sign of incapacity of the MAKER to pay the principal or interest due, to accelerate the payment of the full principal sum and accrued interest payable.

This note is payable in U.S. Dollars. At any time the maximum rate of interest applicable to this transaction shall not exceed the legal maximum rate of interest for a note of this type. Any sums paid in excess of any lawful limitation shall be applied to principal.

After default herein, this note will bear interest at the highest legal rate for this type of note until paid in full. Upon any default, MAKER agrees to pay a reasonable attorney’s fee for any and all services of an attorney, whether in or out of court, and for appeal and post-judgment collection legal services.
Dated:

____________________________________________
MAKER

PERSONAL GUARANTEE

The undersigned, in consideration of the extension of credit by HOLDER to MAKER, unconditionally personally guarantee the full and prompt payment of principal, interest, and any collection costs, including attorney’s fees to HOLDER. The undersigned consent to any extensions which may be made from time to time between MAKER and HOLDER, and consents to the release or substitution of any collateral.

***************************************************************
READ CAREFULLY: You are executing a legally binding obligation to pay this debt should the primary maker fail or refuse to do so.  This may mean that you might be called on to pay this debt and collection costs.
***************************************************************

__________________________________________
GUARANTOR

__________________________________________
GUARANTOR

Promissory Note
Review List

This review list is provided to inform you about this document in question and assist you in its preparation. This is a straightforward promissory note.  Be guided accordingly.

1.  Make multiple copies.  Give one to each related party.

$ ______________ (Face Value or Principal Note)            ______________ (Date)

For value received, the undersigned _____________________________________
(“Borrower”), _________________________________________ (Address), promises to pay to the order of ____________________________________(“Lender”), the sum of $ _____________, with interest on unpaid principal of 1.5% per month or 18% per year, upon the demand of the Lender (“Due Date”), at _______________________________ or other place designated by the Lender.

Unpaid principal after the Due Date, occurring after the demand of the Lender as stated above and as of that date, shall accrue interest at a rate of 2% per month or 24% annually, or the highest amount allowed by law, until paid.

Any payments on this Note shall first be applied against legal or collection costs until paid in full, as then may be due, and then against outstanding interest until paid in full, as then may be due, and finally applied to the outstanding principal balance.

1.  Prepayment.  The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date with no prepayment penalty.

2.  Collection Costs, Attorney’s Fees, and Late Charge.  If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process, without protest of any kind, legal or otherwise.  If the note remains unpaid for an additional 30 days after Lender gives demand, the Borrower shall be required to pay a 5% late charge based on the principal still remaining due on the Note at that time.

3.  Default Events.  If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become due immediately, without demand or notice:

1)  failure of the Borrower to pay the principal and any accrued interest in full on or
before the Due Date;

2)    death of the Borrower or Lender;

3)    filing of bankruptcy proceedings involving the Borrower as a Debtor;

4)    application for the appointment of a receiver for the Borrower;

5)    making of a general assignment for the benefit of the Borrower’s creditors;

6) insolvency of the Borrower;

7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or
extending credit.

4.  Borrower Waivers.  Borrower waives presentment for payment, protest, and notice of protest and nonpayment of this Note.

5.  Additional Lender Rights.  No renewal or extension of this Note, delay in enforcing any right of the Lender under this Note, or assignment by Lender of this Note shall affect the liability or the obligations of the Borrower.  All rights of the Lender under this Note are cumulative and may be exercised concurrently or consecutively at the Lender’s option.

6.  Notices.

Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or a recognized over night delivery service such as FedEx.

If to the Borrower:  ______________________________________________________.

If to the Lender: ________________________________________________________.

7.  No Waiver.

The waiver or failure of either party to exercise in any respect any right provided in this agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.

8.  Entirety of Agreement.

The terms and conditions set forth herein constitute the entire agreement between the parties and supersede any communications or previous agreements with respect to the subject matter of this Agreement.  There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein.  No change can be made to this Agreement other than in writing and signed by both parties.

9.  Governing Law.

This Agreement shall be construed and enforced according to the laws of the State of ____________________ and any dispute under this Agreement must be brought in this venue and no other.

10.  Headings in this Agreement

The headings in this Agreement are for convenience only, confirm no rights or obligations in either party, and do not alter any terms of this Agreement.

11.  Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.

In Witness whereof, the parties have executed this Agreement as of the date first written above.

_________________________                _______________________
Borrower                            Lender

Promissory Note, Demand
Review List

This review list is provided to inform you about the document in question and assist you in its preparation.  The tough language involved in this document is required to improve your chances of collecting on a defaulted note.  As a rule, these kinds of notes are subject to collection problems with the borrower.  The lender can forebear if he or so chooses.  However, strict terms are required to improve the odds of ultimate collection.

We recommend a Balloon Note instead of this one because there is a predictable end point for all parties.  Whether you use a Balloon Note or this Demand note, either kind should be used, in our opinion, if a friend or family member requests a loan.  The best result can be for the prospective borrower to decide they do not want to undertake the risks of such a loan.  Good; you are off the hook.

If you are the borrower desiring a loan from a family member or friend, this is a good document to use if you mean it.  If that person shows the document to a financial advisor or attorney, they will report that you are “serious” about repayment and have provided the appropriate protections.  This, in fact, is exactly what happened to me in my first company, the Umbroller stroller company, when my partner and I both used family loans.  Both were repaid in full and complete satisfaction to the parties, in part, because the terms of the loan were binding upon our Corporation and thereby influenced our financial backers to repay the loans as due.  On a personal basis, because we put tough terms on ourselves, our families didn’t feel like irresponsible fools for giving us the money!

This is a simple straightforward document that only requires the signatures of the party. If you are concerned about any later dispute, and being on the safe side is always prudent, we recommend you obtain a notary verification and signature as well.

There should be only one original of this document; multiples imply multiple obligations by the borrower.  The lender should keep the original in a home safe or safety deposit box.  Copies can be kept as desired, by the parties.

$ ______________ (Face Value or Principal Note)            ______________ (Date)

For value received, the undersigned _____________________________________
(“Borrower”), _________________________________________ (Address), promises to pay to the order of ____________________________________(“Lender”), at                             9 AM on ___________________ (Date) at ____________________________________ (“Location”) or other place as Lender designates in writing the sum of $ _____________,
with interest on unpaid principal of 1.5% per month or 18% per year.

Unpaid principal after the Due Date shown above accrue interest at a rate of 2% per month or 24% annually, or the highest amount allowed by law, until paid.

Any payments on this Note shall first be applied against legal or collection costs until paid in full, as then may be due, and then against outstanding interest until paid in full, as then may be due, and finally applied to the outstanding principal balance.

1.  Prepayment.  The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date with no prepayment penalty.

2.  Collection Costs, Attorney’s Fees, and Late Charge.   If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process, without protest of any kind, legal or otherwise.  In addition, the Borrower will be required to pay a 5% late charge on the amount of the principal then due.

3.  Default Events.  If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become due immediately, without demand or notice:

1)  failure of the Borrower to pay the principal and any accrued interest in full on or
before the Due Date;

2)    death of the Borrower or Lender;

3)    filing of bankruptcy proceedings involving the Borrower as a Debtor;

4)    application for the appointment of a receiver for the Borrower;

5)    making of a general assignment for the benefit of the Borrower’s creditors;

6) insolvency of the Borrower;

7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or
extending credit.

4.  Borrower Waivers.  Borrower waives presentment for payment, protest, and notice of protest and nonpayment of this Note.

5.  Additional Lender Rights.  No renewal or extension of this Note, delay in enforcing any right of the Lender under this Note, or assignment by Lender of this Note shall affect the liability or the obligations of the Borrower.  All rights of the Lender under this Note are cumulative and may be exercised concurrently or consecutively at the Lender’s option.

6.  Notices.

Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or a recognized over night delivery service such as FedEx.

If to the Borrower:  ______________________________________________________.

If to the Lender: ________________________________________________________.

7.  No Waiver.

The waiver or failure of either party to exercise in any respect any right provided in this agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.

8.  Entirety of Agreement.

The terms and conditions set forth herein constitute the entire agreement between the parties and supersede any communications or previous agreements with respect to the subject matter of this Agreement.  There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein.  No change can be made to this Agreement other than in writing and signed by both parties.

9.  Governing Law.

This Agreement shall be construed and enforced according to the laws of the State of ____________________ and any dispute under this Agreement must be brought in this venue and no other.

10.  Headings in this Agreement

The headings in this Agreement are for convenience only, confirm no rights or obligations in either party, and do not alter any terms of this Agreement.

11.  Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.

In Witness whereof, the parties have executed this Agreement as of the date first written above.

_________________________                _______________________
Borrower                            Lender

Promissory Note, Balloon
Review List

This review list is provided to inform you about the document in question and assist you in its preparation.  The tough language involved in this document is required to improve your chances of collecting on a defaulted note.  As a rule, these kinds of notes are subject to collection problems with the borrower.  The lender can forebear if he or so chooses.  However, strict terms are required to improve the odds of ultimate collection.

We strongly recommend this kind of loan document if a friend or family member requests a loan.  The best result can be for the prospective borrower to decide they do not want to undertake the risks of such a loan.  Good; you are off the hook.

If you are the borrower desiring a loan from a family member or friend, this is a good document to use if you mean it.  If that person shows the document to a financial advisor or attorney, they will report that you are “serious” about repayment and have provided the appropriate protections.  This, in fact, is exactly what happened to me in my first company, the Umbroller stroller company, when my partner and I both used family loans.  Both were repaid in full and complete satisfaction to the parties, in part, because the terms of the loan were binding upon our Corporation and thereby influenced our financial backers to repay the loans as due.  On a personal basis, because we put tough terms on ourselves, our families didn’t feel like irresponsible fools for giving us the money!

This is a simple straightforward document that only requires the signatures of the party. If you are concerned about any later dispute, and being on the safe side is always prudent, we recommend you obtain a notary verification and signature as well.

There should be only one original of this document; multiples imply multiple obligations by the borrower.  The lender should keep the original in a home safe or safety deposit box.  Copies can be kept as desired, by the parties.

__________________, 20_____          _____________, ____________
$_______. ____

_______________________, referred to herein as “MAKER”, agrees to pay to the Order of _______________________, referred to herein as “HOLDER”, or order, the sum of $____, (______________________________&___/100 Dollars), at __________________, _______________, _____________, with interest thereon at rate of ___% per annum, simple interest.

Said note shall be in due, unless earlier accelerated, in ______ installments, payable every _______, in the amount of $_____. 00   (____________________&__/100 Dollars). All payments received shall be credited first to interest and then to principal. Should MAKER fail to pay any installment when due, then HOLDER shall have the option to accelerate the payment of the full principal sum and accrued interest payable. HOLDER shall have the right for commercially reasonable causes, including but not limited to, the institution of litigation, the filing of tax liens, or any other objective sign of incapacity of the MAKER to pay the principal or interest due, to accelerate the payment of the full principal sum and accrued interest payable.

This note is payable in U.S. Dollars. At any time the maximum rate of interest applicable to this transaction shall not exceed the legal maximum rate of interest for a note of this type. Any sums paid in excess of any lawful limitation shall be applied to principal.

After default herein, this note will bear interest at the highest legal rate for this type of note until paid in full. Upon any default, MAKER agrees to pay a reasonable attorney’s fee for any and all services of an attorney, whether in or out of court, and for appeal and post-judgment collection legal services.
Dated:

____________________________________________
MAKER

PERSONAL GUARANTEE

The undersigned, in consideration of the extension of credit by HOLDER to MAKER, unconditionally personally guarantee the full and prompt payment of principal, interest, and any collection costs, including attorney’s fees to HOLDER. The undersigned consent to any extensions which may be made from time to time between MAKER and HOLDER, and consents to the release or substitution of any collateral.

***************************************************************
READ CAREFULLY: You are executing a legally binding obligation to pay this debt should the primary maker fail or refuse to do so.  This may mean that you might be called on to pay this debt and collection costs.
***************************************************************

__________________________________________
GUARANTOR

__________________________________________
GUARANTOR

Promissory Note
Review List

This review list is provided to inform you about this document in question and assist you in its preparation. This is a straightforward promissory note.  Be guided accordingly.

1.  Make multiple copies.  Give one to each related party.

_______________, referred to herein as MAKER, promises to pay to
_______________, referred to as HOLDER, the sum of $______. ___
(______________________________________ & ___/100 Dollars), with interest at the rate of ___ per cent, per annum; however, at no time shall the rate of interest charged herein exceed the applicable limit provided by controlling interest and usury statutes. If interest is charged in excess of the applicable maximum rate, any overpaid interest shall be credited to principal.

This note shall be due upon demand.

Upon default, the sums due herein shall accrue interest at the highest legal rate. THIS NOTE IS NON-RECOURSE, AND THE HOLDER MAY NOT SEEK RECOURSE TO ANY PERSONAL ASSETS OF THE DEBTOR. The Maker does not agree to subject any of his personal assets to the payment of this debt. However, the HOLDER of this note may seek to subject any and all security for this debt for foreclosure or other applicable legal or equitable remedies. However, a deficiency, if any, shall not be a personal obligation of the HOLDER. The HOLDER shall be entitled to receive attorney’s fees and other costs of collection, provided that the same shall only collected from proceeds from foreclosure or other legal or equitable remedies related to security for this debt, if any. Such attorney’s fees and collection costs shall not be a personal obligation of the MAKER and the MAKER’s personal assets shall not be subject to the payment of these sums, however any property which is specifically pledged may be subject to foreclosure or other remedy allowed by law.

Dated: _____________________________________

_________________________________________________
Maker
Non-Recourse, Non-Negotiable Promissory Note
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This is absolutely the most favorable note for a borrower and the least favorable for a lender.  If you are such a lender, be sure to collateralize this loan sufficiently to recover.  If you are a borrower, you are lucky if you can get anyone but your rich Aunt Hilda to sign it in your favor.

1.  Make multiple copies.  Give one to each party.