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Promissory Installment Note (w/Balloon Payment)
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.
BALLOON PAYMENT. Borrower promises
to make a single, final payment for the entire balance owed
to the Payee on or before __________________ [due date for balloon
payment].
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]:
__________________________
