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:
A promissory note is a written promise to pay a debt, typically signed when the loan is made. It can be unconditional, meaning the borrower agrees to pay a specific sum either on demand or at a set future date.
Here are some types of promissory notes that may apply to your situation:
- Cognovit Note: This note allows the lender to obtain a judgment against the borrower without notice or a hearing. It is not valid in many states.
- Collateral Note: This note is secured by collateral, meaning there is an asset backing the loan.
- Demand Note: This note is payable upon request from the lender.
- Floating Note: This type of note has an interest rate that can change over time.
- Recourse Note: If the borrower defaults, the lender can pursue both collateral and personal judgment against them. Most notes fall into this category.
- Renewal Note: This note extends the due date of an existing note.
- Unsecured Note: This note is not backed by collateral, relying solely on the borrower's promise to pay.
Generally, a promissory note does not need to be recorded. All borrowers must sign the note, but the lender's signature is not typically required.
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.