Promissory Note Guides
105 articles in this category
Can someone sign a promissory note with a power of attorney?
An agent can sign a promissory note for someone else if the power of attorney covers borrowing and the signature shows the agent's capacity. Here's what a lender should check.
Does a partial payment restart the statute of limitations on a promissory note?
A small payment can reset the deadline to sue on a note in some states and do nothing in others. Here's how 17 states treat payments and written acknowledgments.
Medicaid and family loans: when a promissory note counts as a gift
Families often lend a parent's savings to a child, or the reverse, without thinking about long-term care. Medicaid looks back five years, and a promissory note that does not meet three federal requirements is treated as a gift. What those requirements are and why they matter.
How to write a promissory note amendment (with a sample)
An amendment changes specific terms of a signed note. Here's what it must identify, who has to sign it, and a full sample built on a $12,000 note.
How can some lenders legally charge 200% interest?
Payday and small-loan lenders charge triple-digit APRs under licensing statutes that override usury caps. A private lender with a promissory note gets no such exemption.
How to build an amortization schedule for a promissory note in a spreadsheet
One payment formula and four column formulas turn any spreadsheet into an amortization schedule. Here is the setup, a worked $8,000 example, and the final-payment fix.
Can you charge a higher interest rate after a promissory note defaults?
A default interest rate clause can raise the rate after a missed payment, but it must be written in advance, stay reasonable, and fit the state usury cap.
Interest-only promissory notes: how they work and when to use one
An interest-only note keeps early payments low and leaves the principal untouched. See a $50,000 example at 7 percent, the borrower's risks, a sample clause, and IRS reporting.
Can a promissory note be notarized online?
Yes, in states that allow remote online notarization. See how Virginia, Texas, and Florida handle it, what the notarial fee can be, and when an e-signature alone may be enough.
Can the borrower deduct interest on a personal loan from family?
Usually not. Interest on a family loan used for personal spending is nondeductible personal interest. The exceptions are a recorded mortgage on the borrower's home and money used for a business or investments.
Payment methods and proof of payment on a private loan
Private loans rarely fall apart over the paperwork. They fall apart because nobody can show what actually moved, and when. Build the record while the money is moving.
Can someone else take over the loan? Assumption and successor liability
Your borrower wants to hand the payments to a buyer, a relative, or a friend. Here is what actually transfers, what stays behind, and the paperwork that decides which is which.