A promissory note is a written promise to pay a debt. 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.
New Mexico Checklist — Items to Consider for Drafting a Promissory Note: 1. Parties involved: Identify the lender (payee) and borrower (promise) accurately. 2. Loan amount: Specify the exact principal amount loaned by the lender to the borrower. 3. Interest rate: Determine the interest rate that will be charged on the loan. 4. Repayment terms: Establish the duration of the loan and the repayment schedule. 5. Late payment penalty: Decide on the consequences for any missed or late payments by the borrower. 6. Collateral: If applicable, detail any collateral provided by the borrower to secure the loan. 7. Governing law: Specify that New Mexico law will be used to interpret and enforce the promissory note. 8. Governing jurisdiction: Determine the court or jurisdiction in New Mexico where any legal disputes will be resolved. 9. Acceleration clause: Define the conditions under which the lender can demand full repayment of the loan. 10. Demand clause: State whether the lender can demand early repayment at any time. 11. Prepayment penalty: Specify if the borrower will face any penalties for repaying the loan early. 12. Usury laws: Comply with New Mexico's usury laws, which impose restrictions on maximum interest rates. 13. Default clause: Outline the consequences if either party fails to fulfill their obligations under the note. 14. Severability clause: Ensure that if any part of the promissory note is deemed unenforceable, the remaining provisions still apply. 15. Execution and signatures: Include spaces for both parties to sign and date the promissory note. 16. Notary acknowledgment: Consider having the promissory note notarized to add an extra layer of authenticity. Different types of New Mexico Checklist — Items to Consider for Drafting a Promissory Note: 1. Personal loan promissory note: Pertains to loans between individuals, such as friends or family members. 2. Business loan promissory note: Pertains to loans obtained by businesses, typically from banks or other entities. 3. Real estate promissory note: Specifically for loans related to real estate transactions. 4. Installment promissory note: Refers to loans that are repaid in regular installments instead of a lump sum. 5. Revolving promissory note: Involves a credit line with a predetermined limit wherein the borrower can borrow and repay repeatedly within the set limit. 6. Secured promissory note: Involves the use of collateral to guarantee repayment, providing security to the lender in case of default.New Mexico Checklist — Items to Consider for Drafting a Promissory Note: 1. Parties involved: Identify the lender (payee) and borrower (promise) accurately. 2. Loan amount: Specify the exact principal amount loaned by the lender to the borrower. 3. Interest rate: Determine the interest rate that will be charged on the loan. 4. Repayment terms: Establish the duration of the loan and the repayment schedule. 5. Late payment penalty: Decide on the consequences for any missed or late payments by the borrower. 6. Collateral: If applicable, detail any collateral provided by the borrower to secure the loan. 7. Governing law: Specify that New Mexico law will be used to interpret and enforce the promissory note. 8. Governing jurisdiction: Determine the court or jurisdiction in New Mexico where any legal disputes will be resolved. 9. Acceleration clause: Define the conditions under which the lender can demand full repayment of the loan. 10. Demand clause: State whether the lender can demand early repayment at any time. 11. Prepayment penalty: Specify if the borrower will face any penalties for repaying the loan early. 12. Usury laws: Comply with New Mexico's usury laws, which impose restrictions on maximum interest rates. 13. Default clause: Outline the consequences if either party fails to fulfill their obligations under the note. 14. Severability clause: Ensure that if any part of the promissory note is deemed unenforceable, the remaining provisions still apply. 15. Execution and signatures: Include spaces for both parties to sign and date the promissory note. 16. Notary acknowledgment: Consider having the promissory note notarized to add an extra layer of authenticity. Different types of New Mexico Checklist — Items to Consider for Drafting a Promissory Note: 1. Personal loan promissory note: Pertains to loans between individuals, such as friends or family members. 2. Business loan promissory note: Pertains to loans obtained by businesses, typically from banks or other entities. 3. Real estate promissory note: Specifically for loans related to real estate transactions. 4. Installment promissory note: Refers to loans that are repaid in regular installments instead of a lump sum. 5. Revolving promissory note: Involves a credit line with a predetermined limit wherein the borrower can borrow and repay repeatedly within the set limit. 6. Secured promissory note: Involves the use of collateral to guarantee repayment, providing security to the lender in case of default.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.