Convert To Ppt Legal Connecticut Promissory Notes Forms For Free

I REPEAT: Both parties must sign the promissory note! This means both the lender and borrower must sign the original document (plus any amended versions). Without the signatures, the promissory note has no legal leg to stand on.

A promissory note is a written and signed promise to repay a sum of money in exchange for a loan or other financing. A promissory note typically contains all the terms involved, such as the principal debt amount, interest rate, maturity date, payment schedule, the date and place of issuance, and the issuer's signature.

As its name indicates, a promissory note is basically a promise, put into writing, to pay another person a sum of money. The person making the promise is called the payer, while the person who is to receive the payment is known as the payee.

Necessities of a promissory note The document must contain an unconditional undertaking to pay. The undertaking must be to pay money only. The money to be paid must be certain. It must be payable to or to the order of someone in particular or to the bearer.

Important details any promissory note should state include the following: Payor or borrower : Include the name of the party who promised to repay the stated debt. Payee or lender : Include the name of the lender, the person or entity, lending the money. Date : List the exact date the promise to repay is effective.

Parties of Promissory Note All promissory notes constitute three primary parties. These include the drawee, drawer and payee. Drawer: A drawer is a person who agrees to pay the drawee a certain amount of money on the maturity of the promissory note. He/she is also known as maker.