6 Basics of Promissory Notes
What Is a Promissory Note? When you’re thinking about providing someone with a loan that they can use to get a car or go to college, you might want to think about first creating a promissory note that will act as a kind of legal record for the loan while also making sure that you are properly repaid in the allotted time. Before you use a promissory note template to create one of these notes, you should first know more about a promissory note and what the legality of such a note is. Breaking Down a Promissory Note Promissory notes are a type of loan agreement or note that states that the borrower of the loan promises to pay back a certain amount of the money by a specific time frame. For instance, the promissory note could state that the borrower agrees to repay a total of $5,000 over a period of four years. While this document is very similar to a basic IOU, it’s considered to be a legally binding document, which means that its terms can be enforced and are expected to be fol...