Promissory Note Guides
89 articles in this category
Personal guarantees: How a guarantor on a note differs from a co-signer
A guarantor backs someone else's debt and usually pays only after a default. Here is how a guaranty differs from co-signing, and what to read first.
Assigning a promissory note: How to transfer it to someone else
Transferring a note is about moving the right to collect. Here's how endorsement, written assignment, borrower notice, and the security interest fit together.
Simple vs Compound Interest on a Loan: Why the Difference Costs More Than You Think
Simple interest accrues on principal only. Compound interest earns interest on the interest. On a multi-year loan that gap turns into real money, and here's the math that proves it.
No State requires you to Notarize a Promissory Note. Here is the one time it really pays to
Notarization is optional in every single state. That does not mean it is pointless. There is one situation where the trip to a notary quietly saves you a fight later.
Using a Promissory Note in Owner Financing or a Land Contract
When a seller finances the buyer, a promissory note carries the promise and a mortgage secures it. A land contract works differently, holding title back until payoff. Here is how each protects you.
Can a Verbal Loan Be Enforced? Why a Handshake Usually Falls Apart
An oral loan can be perfectly legal and still be nearly impossible to prove. Here is when the law demands a writing, how people try to prove a handshake deal, and the simple fix.
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.