A sample of an acceleration clause in a promissory note would be: "the failure to pay any installment when due shall mature the entire indebtedness at the option of the holder of this Note." A sample of a prepayment clause in a promissory note would be: "the undersigned may prepay the principal amount outstanding in whole or in part without penalty."
New Jersey Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment of Note: In the state of New Jersey, when a borrower wishes to settle the outstanding balance of a promissory note due to acceleration or prepayment, a formal letter is typically required. This letter serves as a legal document confirming the borrower's intention to fully pay off the remaining balance of the promissory note before its scheduled maturity date. To ensure the letter is comprehensive and legally binding, it should include the following elements: 1. Date: Begin the letter by including the current date on the right-hand side of the document. 2. Recipient's Information: Address the letter to the appropriate party, such as the lender or the lending institution, ensuring to include their full name, title, and address. 3. Salutation: Use a respectful salutation such as "Dear [Recipient's Name]" or "To whom it may concern." 4. Your Information: Provide your name, address, phone number, and email address at the top left-hand side of the letter. This information will help the recipient identify you and contact you if needed. 5. Subject Line: The subject line should clearly state the purpose of the letter, such as "Letter Tendering Full Payment of Promissory Note Balance." 6. Opening Paragraph: Begin the letter with a concise introduction that states your intention to accelerate or prepay the promissory note. Mention the date when the accelerated or prepayment request was made and any associated reference numbers. 7. Relevant Dates: It is crucial to include the original date of the promissory note, its maturity date, and the amount of the initial loan. This information will help the recipient identify the specific promissory note being addressed. 8. Acceleration or Prepayment Details: Explain in detail the reason for the acceleration or prepayment and any accompanying circumstances that necessitate early payment. If there are any penalties, fees, or conditions for acceleration or prepayment outlined in the original promissory note, mention them explicitly. 9. Payment Amount Calculation: Provide a detailed breakdown of the existing balance of the promissory note, including principal, interest, and any applicable fees or charges. Calculate the total sum required for the full payment and specify whether it includes any additional costs related to acceleration or prepayment. 10. Payment Method: State how you intend to make the full payment, whether through a cashier's check, wire transfer, certified funds, or any other acceptable method. It is advisable to mention any specific instructions or preferences regarding payment, ensuring compliance with the lender's requirements. 11. Request for Confirmation: Politely request a written confirmation from the recipient, acknowledging receipt of the letter and accepting the proposed full payment. Include a specified deadline for their response. 12. Closing: Close the letter with a suitable closing, such as "Sincerely" or "Best regards," followed by your full name, signature, and printed name. If the letter is being sent electronically, include your typed name instead of a signature. Alternate Types of New Jersey Letters Tendering Full Payment of Existing Balance of Promissory Note: — New Jersey Letter of Prepayment: Used to tender full payment of a promissory note balance before its scheduled maturity date without being associated with acceleration. — New Jersey Letter of Auto-Debit: Sent to lenders to arrange the automatic deduction of payments from a borrower's bank account on specified dates, ensuring timely repayment. — New Jersey Letter of Early Payment Request: Requesting permission to make an early payment toward the promissory note balance without fully paying it off. This type of letter seeks to reduce interest charges or lower monthly payments. — New Jersey Letter of Deficiency Balance: A letter sent to the borrower after the full payment of the promissory note, acknowledging any remaining deficiencies in the balance and outlining the repayment terms for the remaining amount. Note: The specific format, phrasing, and content may vary depending on the individual circumstances, lender's requirements, or legal advice. It is always recommended consulting with an attorney for specific legal guidance regarding promissory notes and early payment arrangements.New Jersey Letter Tendering Full Payment of Existing Balance of Promissory Note Due to Acceleration or Prepayment of Note: In the state of New Jersey, when a borrower wishes to settle the outstanding balance of a promissory note due to acceleration or prepayment, a formal letter is typically required. This letter serves as a legal document confirming the borrower's intention to fully pay off the remaining balance of the promissory note before its scheduled maturity date. To ensure the letter is comprehensive and legally binding, it should include the following elements: 1. Date: Begin the letter by including the current date on the right-hand side of the document. 2. Recipient's Information: Address the letter to the appropriate party, such as the lender or the lending institution, ensuring to include their full name, title, and address. 3. Salutation: Use a respectful salutation such as "Dear [Recipient's Name]" or "To whom it may concern." 4. Your Information: Provide your name, address, phone number, and email address at the top left-hand side of the letter. This information will help the recipient identify you and contact you if needed. 5. Subject Line: The subject line should clearly state the purpose of the letter, such as "Letter Tendering Full Payment of Promissory Note Balance." 6. Opening Paragraph: Begin the letter with a concise introduction that states your intention to accelerate or prepay the promissory note. Mention the date when the accelerated or prepayment request was made and any associated reference numbers. 7. Relevant Dates: It is crucial to include the original date of the promissory note, its maturity date, and the amount of the initial loan. This information will help the recipient identify the specific promissory note being addressed. 8. Acceleration or Prepayment Details: Explain in detail the reason for the acceleration or prepayment and any accompanying circumstances that necessitate early payment. If there are any penalties, fees, or conditions for acceleration or prepayment outlined in the original promissory note, mention them explicitly. 9. Payment Amount Calculation: Provide a detailed breakdown of the existing balance of the promissory note, including principal, interest, and any applicable fees or charges. Calculate the total sum required for the full payment and specify whether it includes any additional costs related to acceleration or prepayment. 10. Payment Method: State how you intend to make the full payment, whether through a cashier's check, wire transfer, certified funds, or any other acceptable method. It is advisable to mention any specific instructions or preferences regarding payment, ensuring compliance with the lender's requirements. 11. Request for Confirmation: Politely request a written confirmation from the recipient, acknowledging receipt of the letter and accepting the proposed full payment. Include a specified deadline for their response. 12. Closing: Close the letter with a suitable closing, such as "Sincerely" or "Best regards," followed by your full name, signature, and printed name. If the letter is being sent electronically, include your typed name instead of a signature. Alternate Types of New Jersey Letters Tendering Full Payment of Existing Balance of Promissory Note: — New Jersey Letter of Prepayment: Used to tender full payment of a promissory note balance before its scheduled maturity date without being associated with acceleration. — New Jersey Letter of Auto-Debit: Sent to lenders to arrange the automatic deduction of payments from a borrower's bank account on specified dates, ensuring timely repayment. — New Jersey Letter of Early Payment Request: Requesting permission to make an early payment toward the promissory note balance without fully paying it off. This type of letter seeks to reduce interest charges or lower monthly payments. — New Jersey Letter of Deficiency Balance: A letter sent to the borrower after the full payment of the promissory note, acknowledging any remaining deficiencies in the balance and outlining the repayment terms for the remaining amount. Note: The specific format, phrasing, and content may vary depending on the individual circumstances, lender's requirements, or legal advice. It is always recommended consulting with an attorney for specific legal guidance regarding promissory notes and early payment arrangements.
