http://saclongchamp4.webs.com/Promissory notes are used to record details of a loan transaction between two or more parties. They are used in a variety of financial and real estate transactions, business loans,converse discount, and personal loans between family members and friends,converse homme.
It’s important to realize promissory notes are legal contracts and can be used against you in a court of law,sac longchamp. Before signing any agreement,sacs a main longchamp, it’s essential to understand the different types of promissory notes and how they are used.
Types of Promissory Notes
The most common types of promissory notes include those used to document personal loans between family members or friends,converse femme. Most people shy away from requesting legal documentation when lending money to personal acquaintances,sac longchamp pas cher. While it’s understandable you don’t want to offend someone you care about, promissory notes can actually help prevent misunderstandings,longchamp pas cher.
When friends and family draft a personal promissory note it demonstrates a good faith effort on behalf of the Borrower. It also creates a sense of security for the Lender. Personal promissory notes can be purchased at office supply stores or downloaded from the Internet,sac longchamp. The note should include the terms of the loan, amount borrowed,sac longchamp pas cher, interest rate and what consequences will occur if the Borrower defaults on the loan.
Commercial promissory notes are used when money is borrowed from a bank or other lending institution. Commercial notes are similar to personal notes,converse pas cher,Types Of Promissory Notes; however,longchamp soldes, they include additional legal terms and more stringent conditions,sac longchamp pas cher.
Typically,converse pas cher 19693
http://saclongchamp10.webs.com/,converse pas cher, when a Borrower defaults on a commercial promissory note, the lender has the right to demand full payment,longchamp pas cher. If you owe $3,converse pas cher 41776
http://saclongchamp10.webs.com/,sac longchamp,000 and default on your payment,sac longchamp, the signed promissory note gives the Lender the power to demand the entire balance,sac longchamp pliage pas cher. If you do not pay the full balance,converse all star, the Lender can then place a lien on the property you are financing. They can also file a lawsuit to obtain the balance or regain possession of the property,converse enfant. Not only will you lose the property,sac longchamp pas cher, it will significantly impact your credit rating,sac longchamp.
Some organizations use promissory notes to raise capital for business,converse pas cher. This type of business note is referred to as an investment promissory note,longchamp pas cher. The note is issued to investors in exchange for the loan,chaussures converse femme. Investment notes guarantee investors will receive a return on their investment within a specified period of time,longchamp pas cher 2013,converse pas cher homme 88950
http://saclongchamp10.webs.com/.
Negotiable promissory notes are used to secure real estate transactions,longchamp pas cher. These notes are governed by the Uniform Commercial Code. Real estate promissory notes must adhere to conditions set forth by the National Conference of Commissioners on Uniform State Laws.
Personal promissory notes are simple documents and can usually be drafted without the assistance of a lawyer,converse pas cher. Commercial,longchamp pas cher, Investment and Real Estate Notes will require the services of lawyer to ensure they are legally binding,converse all star,Types Of Promissory Notes.
Legal Terms
Should you decide to draft a promissory note without legal counsel,converse all star, it’s wise to become familiar with the terminology used,converse pas cher. Basically, there are five legal terms used in promissory notes including:
Promisor – The person who is obtaining the loan and who will be obligated to repay it.
Promisee – The person who is providing the loan and who will receive payment for it.
Obligor – The person who is bound by the legal agreement; usually the Promisor.
Obligee – The person to whom the Obligee is bound,sac longchamp pliage pas cher; usually the Promisee,converse all star.
Mutual Consideration – When there is a contract between two parties there must be some value received by both parties,converse all star. This is referred to as “mutual consideration”,sac longchamp pas cher.