Full question:
I have loaned a family member 150,000 terms: 7/03/09 loan interest only @8%. March 2010 to pay minimum of $75,000 based on a 2 year loan.What is name of promissory form required. This loan is signature only loan.
- Category: Debts and Credit
- Subcategory: Promissory Notes
- Date:
- State: California
Answer:
Please see the following definitions of various promissiory notes that may fit your situation:
Promissory Note: A promissory note is a written promise to pay a debt and is typically signed at the time of the loan. It is an unconditional promise to pay on demand or at a fixed or determined future time a particular sum of money to or to the order of a specified person or to the bearer.
Cognovit Note: A cognovit note is a note in which the maker acknowledges the debt and authorizes the entry of judgment against him or her without notice or a hearing : a note containing a confession of judgment. This type of note is not valid in many States.
Collateral Note: A collateral note is a note secured by collateral. Same as a secured note.
Demand Note: A demand note is a note payable on demand from the person who is owed the money.
Floating Note: A floating rate note (or adjustable rate note) is a note where interest varies.
Recourse Note: A recourse note is a note where the default may result in loss of collateral and also personal suit and judgment. Most notes are recourse notes.
Renewal Note: A renewal note is a note that renews a previous note due date.
Unsecured Note: An unsecured note is a note that is not secured by any collateral but only the promise to pay (i.e. signature only is required to loan the money).
Does a promissory note have to be recorded? Generally, a promissory note does not have to be recorded.
Who must sign a promissory note? All borrowers must sign. The lender is generally not required to sign but may sign.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
