Can you add an allonge with different terms to a promissory note?

Full question:

Can you attach an allonge to an existing promissory note that states different terms from the original note?

  • Category: Documents
  • Subcategory: Allonage
  • Date:
  • State: Colorado

Answer:

An allonge is an attachment to a financial instrument, like a promissory note, used when there isn’t enough space for additional information. If you add provisions to an existing promissory note, it is typically considered an addendum or amendment. For the new terms to be valid, all parties must sign the allonge or addendum. If the new terms conflict with the original note, the attachment should clearly state that the allonge's terms take precedence if that is the parties' intent.

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.

FAQs

A promissory note is legally binding when it includes essential elements such as the names of the parties, a clear promise to pay a specific amount, the terms of repayment, and the signature of the maker. Additionally, consideration, or something of value exchanged, is necessary for enforceability. If these elements are present, the note can be enforced in a court of law.