Add Video To Legal Maine Promissory Notes Forms For Free

The promissory note form should include: The names and addresses of the lender and borrower. The amount of money being borrowed and what, if any, collateral is being used. How often payments will be made in and in what amount.

Promissory notes are legally binding whether the note is secured by collateral or based only on the promise of repayment. If you lend money to someone who defaults on a promissory note and does not repay, you can legally possess any property that individual promised as collateral.

A promissory note could become invalid if: It isn't signed by both parties. The note violates laws. One party tries to change the terms of the agreement without notifying the other party.

It is also possible to void a promissory note by changing the terms after signing it. The document will no longer be valid if it is changed. Both parties must sign an amended version if any changes are necessary. This applies to changes in repayment date, interest rate, and borrowing amount.

You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.

Recording a promissory note is not required by law in most cases, but it can serve as proof of the debt and provide a public record of the obligation. Recording a promissory note can also protect the lender's interest in case the borrower sells the property or takes out another loan against it.