Promissory Note Guides
59 articles in this category
How to Secure a Promissory Note With Collateral and a UCC Filing
Turning an unsecured note into a secured one takes three moving parts: a security agreement, a clear collateral description, and a perfected lien. Here's how each piece works.
Prepayment Penalties and Clauses: What Happens When a Borrower Pays Early
Paying a loan off early sounds like a pure win, until a prepayment penalty takes a bite. Here's what a prepayment clause does, why lenders add one, and how to word free prepayment.
Negotiable vs Non-Negotiable Instruments: What Makes a Note Transferable
A promissory note can be freely bought, sold, and passed along, or it can be locked to the two people who signed it. The difference comes down to negotiability under UCC Article 3.
Can You Amend a Promissory Note on a Real Estate Loan?
Yes, and lenders do it constantly. The complication is not the note. It is the mortgage or deed of trust sitting in the public record, and what happens to its priority when the loan changes.
What Is a Demand Note, and When Is Payment Actually Due?
A demand note has no maturity date, so the money comes due when the holder asks. Here is what a proper demand looks like and when the limitations clock starts running.
How to Write a Promissory Note: A Complete Step-by-Step Guide
A step-by-step walkthrough of every element a valid promissory note needs, from parties and principal to default and signatures, plus the mistakes that sink DIY notes.
Do E-Signatures Work on a Promissory Note? What In Writing Really Means
You can sign a promissory note with a click instead of a pen, and it holds up in court. Here is why federal and state law treat an electronic signature the same as ink, and the narrow cases where it does not.
The Five Elements That Turn a Promissory Note Into a Legal Contract
A promissory note is only as strong as the contract law behind it. Five elements decide whether your note is enforceable or just a piece of paper, and any one of them can quietly break the whole thing.
Promissory Note vs Mortgage vs Deed of Trust: How Property Loans Are Really Documented
A real-estate loan isn't one document. It's a promissory note that carries the promise to pay, plus a mortgage or deed of trust that lets the lender foreclose. Here's how the pieces actually fit.
What a Promissory Note Should Include: A Complete Checklist
A clause-by-clause checklist of everything a solid promissory note needs, from principal and legal interest to acceleration, prepayment, collateral, and attorney fees, with why each one matters.
Amortized vs Interest-Only vs Balloon: Choosing a Repayment Structure
Fully amortized, interest-only, and balloon notes move money on very different schedules. Here's the math behind each one and how to match the structure to the deal.
Free Promissory Note Templates: What to Watch Out For
Free promissory note templates can work fine, and they can also quietly cost you the loan. Here is what a blank template leaves out, the real risks, and when free is genuinely enough.