Free Legally Binding IOU

I. Acknowledgment of Debt

I, [YOUR NAME], of [YOUR COMPANY NAME], hereby acknowledge and confess that I am indebted to [CREDITOR NAME] in the sum of [LOAN AMOUNT] [CURRENCY] which represents money borrowed on [LOAN DATE].

II. Promise to Pay

I, [YOUR NAME], promise to repay the aforementioned sum in full to [CREDITOR NAME] by the agreed-upon due date of [DUE DATE]. Payment will be made via [METHOD OF PAYMENT], unless otherwise agreed upon by both parties.

III. Interest

The debt described herein will accrue interest at a rate of [INTEREST RATE]% per annum, compounded [COMPOUNDING PERIOD].

IV. TERMS OF REPAYMENT:

The Borrower agrees to repay the Debt to the Lender under the following terms:

1. REPAYMENT SCHEDULE:

   • The Debt shall be repaid in [NUMBER] installments of $[INSTALLMENT AMOUNT] each.

   • The first installment shall be due on [DATE], and subsequent installments shall be due on the same day of each month thereafter until the Debt is fully repaid.

   • The Borrower shall make payments via [PAYMENT METHOD] to the Lender's designated account.

V. DEFAULT:

1. LATE PAYMENTS:

   In the event of a late payment, the Borrower shall be liable to pay a late fee of $[LATE FEE AMOUNT] for each day the payment is overdue.

2. DEFAULT:

   If the Borrower fails to make any payment when due and such default continues for [NUMBER] days after written notice from the Lender, the entire outstanding balance of the Debt, together with accrued interest, shall become immediately due and payable.

VI. GOVERNING LAW:

This Agreement shall be governed by and construed in accordance with the laws of [STATE/COUNTRY], without regard to its conflict of laws principles.

VII. Signatures

This IOU is signed this day, [SIGN DATE], ensuring the mutual agreement of the owed sum and its repayment conditions as outlined above.

_____________________
[YOUR NAME], Debtor

_____________________
[CREDITOR NAME], Creditor

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