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Promissory Installment Note
RECITATIONS:
Date:
Borrower:
Borrower’s Address:
Payee:
Place for Payment:
Principal Amount:
Term:
Monthly Payments:
INTEREST RATE: Annual interest rate
on matured, unpaid amounts shall be the maximum amount permitted
by the Laws of the State of California.
PAYMENT TERMS. This Note is due and
payable as follows, to-wit: _____________________ (_____) [insert
number of payments] equal monthly payments of $__________________
principal [insert monthly payment amount]. The first such payment
due and payable on the 1st day of _____________________ , 20____,
and a like installment shall be due and payable on the same day
of each succeeding month thereafter until the total principal
of $__________________ principal [insert total principal amount]
is paid in full. If each payment is not paid on time, the remaining
balance will be subject to the maximum amount of interest permitted
by the Laws of the State of California.
BORROWER’S PRE-PAYMENT RIGHT.
Borrower reserves the right to prepay this Note in whole or in
part, prior to maturity, without penalty.
PLACE FOR PAYMENT. Borrower promises
to pay to the order of Payee at the place for payment and according
to the terms for payment the principal amount plus interest at
the rates stated above. All unpaid amounts shall be due by the
final scheduled payment date.
DEFAULT AND ACCELERATION CLAUSE.
If Borrower defaults in the payment of this Note or in the performance
of any obligation, and the default continues after Payee gives
Borrower notice of the default and the time within which it must
be cured, as may be required by law or written agreement, then
Payee may declare the unpaid principal balance and earned interest
on this Note immediately due. Borrower and each surety, endorser,
and guarantor waive all demands for payment, presentation for
payment, notices of intentions to accelerate maturity, notices
of acceleration of maturity, protests, and notices of protest,
to the extent permitted by law.
INTEREST ON PAST DUE INSTALLMENTS
AND CHARGES. All past due installments of principal and/or interest
and/or all other past-due incurred charges shall bear interest
after maturity at the maximum amount of interest permitted by
the Laws of the State of California until paid. Failure by Borrower
to remit any payment by the 15th day following the date that such
payment is due entitles the Payee hereof to declare the entire
principal and accrued interest immediately due and payable. Payee’s
forbearance in enforcing a right or remedy as set forth herein
shall not be deemed a waiver of said right or remedy for a subsequent
cause, breach or default of the Borrower’s obligations herein.
INTEREST. Interest on this debt evidenced
by this Note shall not exceed the maximum amount of non-usurious
interest that may be contracted for, taken, reserved, charged,
or received under law; any interest in excess of the maximum shall
be credited on the principal of the debt or, if that has been
paid, refunded. On any acceleration or required or permitted prepayment,
any such excess shall be canceled automatically as of the acceleration
or prepayment or, if already paid, credited on the principal of
the debt or, if the principal of the debt has been paid, refunded.
This provision overrides other provisions in this instrument (and
any other instruments) concerning this debt.
FORM OF PAYMENT. Any check, draft,
Money Order, or other instrument given in payment of all or any
portion hereof may be accepted by the holder and handled in collection
in the customary manner, but the same shall not constitute payment
hereunder or diminish any rights of the holder hereof except to
the extent that actual cash proceeds of such instruments are unconditionally
received by the payee and applied to this indebtedness in the
manner elsewhere herein provided.
ATTORNEY’S FEES. If this Note
is given to an attorney for collection or enforcement, or if suit
is brought for collection or enforcement, or if it is collected
or enforced through probate, bankruptcy, or other judicial proceeding,
then Borrower shall pay Payee all costs of collection and enforcement,
including reasonable attorney’s fees and court costs in
addition to other amounts due.
SEVERABILITY. If any provision of
this Note or the application thereof shall, for any reason and
to any extent, be invalid or unenforceable, neither the remainder
of this Note nor the application of the provision to other persons,
entities or circumstances shall be affected thereby, but instead
shall be enforced to the maximum extent permitted by law.
BINDING EFFECT. The covenants, obligations
and conditions herein contained shall be binding on and inure
to the benefit of the heirs, legal representatives, and assigns
of the parties hereto.
DESCRIPTIVE HEADINGS. The descriptive
headings used herein are for convenience of reference only and
they are not intended to have any effect whatsoever in determining
the rights or obligations under this Note.
CONSTRUCTION. The pronouns used herein
shall include, where appropriate, either gender or both, singular
and plural.
GOVERNING LAW. This Note shall be
governed, construed and interpreted by, through and under the
Laws of the State of California.
Borrower is responsible for all obligations
represented by this Note.
EXECUTED this __________ day of _______________________, 20_____.
[Borrower’s Signature:]
__________________________
[Borrower’s Printed or Typed
Name]:
__________________________
