Promissory Note Guides
105 articles in this category
Which state's law governs your promissory note?
When the lender and borrower live in different states, one sentence decides the usury ceiling and the limitations clock. Here is how governing-law clauses work and when a court ignores them.
What happens to a promissory note when the lender dies?
The loan does not disappear when the lender passes away. Here is who you pay next, what proof of authority to demand first, and how a forgiveness clause in the will actually works.
Wage garnishment and collecting a judgment on an unpaid note
You won the lawsuit on your note. Now comes the hard part. Here is how wage garnishment, bank levies, and liens turn a judgment into money.
Will a promissory note hold up in court? Proving and authenticating a note
A signed note does not enforce itself. Here is what it takes to win at trial: the original document, a proven signature, and answers to the defenses.
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.