How to Make a Promissory Note in Apple Pages?
Promissory Note is near to a common law contract. Naturally, it is a document stating that a debtor promises to pay a certain amount according to terms of the note for a specific date. This comprises statements that deal on both the debtor and a lender concerning the money from the creditor. A creditor is a person or a company/ business who owed the money being borrowed by a debtor. One thing to ensure about the promissory note is its validity. It must be valid in the form so that its making will make sense.
For a promissory note to be considered as legal document, it should be in a written form of a contract. Lenders and creditors are writing this according to the requirements of state law. Any note is similar in form, the discrepancies play on the principal amount, the interest rate, the parties, the date, the terms of repayment (which could include interest) and the maturity date or the final date of payment.
To ensure that your promissory note is valid and can be recognized in terms of disputes, you have to check whether it has the essential parts as follows:
1. Exchange of Money
Promissory notes are guaranteed as valid if it includes money exchange. The amount borrowed by the principal of the loan should be presented in legally acknowledged currency or the accepted quantity. Included herein are the rate of interest, the number of times with which the amount is to be paid (whether it be once a month or as provided ), and the final date of payment. Without these important details, any promissory note cannot be enforced as legal in form.
2. Affixed Signature
Any affixed signature signifies approval and acceptance to a certain note agreement.
A promissory note will be useless if there is no affixed signature of the debtor or the person borrowing a certain amount proving that he/she agreed to the contract made. The creditor (a person which debt is owed) and the lender (a person who lends money) must reassess the identity of the borrower upon the signing of the signature.
3. Witness of Agreement
Apart from the lender and the debtor, there must be witnesses present especially in the signing of the contract to maintain transparency and security of the contract. Before the money is released, this must be ensured, too.
Promissory Notes can be enforced based on its type. This can be Secured Promissory Notes or Unsecured Promissory Notes.
4. Secured Promissory Note
This involves collateral in the form of assets guarantees that when the borrower defaults on payment, the lender has the right to take the assets that were included as part of the promissory note. The collateral can be tangible or intangible.
5. Unsecured/Free Promissory Note
This can be riskier for lenders compared to the former. There are no properties attached in case of loan defaults, however, lenders can charge higher interest rates because of the heavy risk.