| A Promissory is an agreement between a | | | | ‘designated location'. This requires to be filled |
| borrower and the money lender regarding the | | | | in by the note holder, mentioning the place where |
| return of the payment on a fixed time, as | | | | he wishes to receive his payments back. |
| mentioned in this note. Such a form has the | | | | • Next column is of the prepayment if |
| following format: | | | | any. The Promissory note may be prepaid either |
| • A promissory note consists of detailed | | | | in parts, or completely, without any penalty. |
| columns in the beginning, which is meant for the | | | | • Default forms the subject for next |
| names of the money lender and the borrower. | | | | column. In this, the borrower is liable to pay all the |
| • Some provisions would be stated to | | | | attorney fees and every other cost incurred by |
| select from before continuing. These provisions | | | | the lender. |
| are: | | | | • The next section is of ‘joint and |
| - Terms of the repayment-this will describe the | | | | several liabilities'. All the borrowers mentioned in |
| terms of repayment by the borrower. | | | | this note, are liable for any debts as per the note, |
| - Terms of periodic payment-It begins on the | | | | jointly. |
| ‘date' and continues till the ‘principal | | | | • Another section mentions that there |
| balance' of the note. These are the dates on | | | | must not be any modifications of any terms till a |
| which the borrower is entitled to pay the lender | | | | mutual agreement is presented by both the |
| every month. | | | | parties. |
| - Payable on demand- In case of an inability to | | | | • There are several columns which |
| pay on the due date, the borrower has to pay on | | | | demand details of the loan taken, the loan period, |
| whatever date the lender asks him to. | | | | and the contact details of the two parties. |
| - Late fees can be made applicable upon a | | | | • Finally, the form requires signatures of |
| borrower by the lender. | | | | the lender, the borrower and the witness |
| • The next column comprises of | | | | respectively. |