Checklist for Writing a Promissory Note – 5 Templates

What is a promissory note and how can you use one? Well, if you ever borrow money from someone, you would likely be asked to sign this type of document so that the lender can be sure you will pay back what you owe. If the situation were reversed and you are lending money to someone, then you should also get them to sign a promissory note in a word.

Read on to learn more details about sample promissory notes and view some templates you can purchase and use. You may also see checklist templates.

Checklist for Drafting a Promissory Note Template


General Promissory Note Template


Promissory Note Line of Credit Template


Promissory Note with Acceleration Clause Template


Demand to Pay Promissory Note Template


What is the difference between a secured and unsecured promissory note?

You can decide between using a secured or unsecured promissory note template depending on how you wish the borrower to pay you back. Here are the differences between these two types:

Secured promissory note

This is the kind of note where the terms give the lender a form of “security interest” by having the borrower hand over the property as collateral. If the borrower does not comply with the terms and sample agreements of the loan payment or is not able to pay back the money on the desired date, then the lender can take the collateral as the payment for the debt. The main benefit of having the secured promissory note is that the lender is protected should the borrower fail or decide not to pay the debt. The security interest ends when the debt has been fully repaid, wherein the lender must hand back all collateral items back to the borrower. You may also see blank checklist templates.

Promissory secured on personal property

Personal property can either be tangible or intangible. Tangible property means anything that can be physically touched such as the borrower’s computer, a piece of jewelry, or a car. Intangible property refers to things such as patents, copyrights, or the ownership rights of a particular small business. Often, when a note is secured by the borrower’s personal property, there are other documents that need to be provided in order for the lender to ensure ownership of the property until the debt has been paid. An example of this would be the pink slip or the bill of sales to a vehicle.

Promissory note secured by real property

This will consist of either improved or unimproved land. If you would like to secure a promissory note form on the real property, then you will need a deed of trust that will be referenced in the blank promissory note. A deed of trust is a legal document in which a legal title of real property is transferred to a trustee (you) and the property will be held as a form of security for the loan. The importance of the promissory note sample when loaning money secured on real property is that you will have a sample mortgage lien on the property. The lien will protect you should the borrower decide not to make any of the necessary payments. This literally allows you to take ownership of the property which you can transfer under your name if the borrower fails to pay the loan under the agreed terms.

Unsecured promissory note

With this type of promissory note, the lender has no form of the security interest in the borrower’s property. While you may think that the borrower has more freedom considering that the lender does not require any form of collateral, then you would be wrong. If ever the borrower does not pay the money that he or she owes, then the lender has every right to file a lawsuit against the borrower. If the lawsuit is successful, then the lender has every right to put a lien on the borrower’s property or pursue any other means in which he or she can collect the payment for the debt. You should take note, though, that this is going to be a very expensive process, and that there is no guarantee that you will be able to recover all of the money that you lent to the borrower. You may also see blank promissory notes.

If you would like to learn more about promissory notes or view other samples such as student promissory note templates), then check out the rest of our articles.

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