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In the realm of financial transactions, the North Dakota Promissory Note form plays a crucial role in establishing clear agreements between borrowers and lenders. This legally binding document outlines the specific terms under which a borrower promises to repay a loan, including the principal amount, interest rate, payment schedule, and maturity date. The form also addresses important conditions, such as late payment penalties and default clauses, ensuring that both parties understand their rights and obligations. Additionally, the North Dakota Promissory Note includes spaces for signatures, which formalize the agreement and provide evidence of consent. By incorporating these elements, the form not only facilitates trust between the parties involved but also serves as a valuable tool for legal recourse in the event of disputes. Understanding the intricacies of this document is essential for anyone engaging in lending or borrowing activities in North Dakota, as it lays the foundation for a transparent financial relationship.
Sample - North Dakota Promissory Note Form
North Dakota Promissory Note Template
This Promissory Note (the "Note") is intended to comply with the applicable legal requirements of the state of North Dakota and sets forth the terms under which the Borrower promises to repay the Lender. The parties agree as follows:
1. Parties
Lender's Name: ___________________________________________________
Lender's Address: _________________________________________________
Borrower's Name: __________________________________________________
Borrower's Address: ________________________________________________
2. Principal Amount
The principal amount of the loan is $_________________.
3. Interest
The loan will bear interest at an annual rate of _____%, in accordance with North Dakota Century Code 47-14-09, unless otherwise agreed upon.
4. Payment
Payments will be made as follows:
- Initial payment of $_____________ is due on _________________ (date).
- Subsequent payments of $_____________ will be due monthly on the ____ day of each month starting _________________ (date) until the loan is paid in full.
5. Late Fees
If a payment is more than ______ days late, a late fee of $_______ will be applied.
6. Prepayment
Borrower may pay off the full amount of this loan, or any portion thereof, at any time without penalty.
7. Default
If the Borrower fails to make payments in accordance with the agreed terms, the Lender has the right to demand immediate full repayment of the remaining loan balance, including any accrued interest and late fees.
8. Governing Law
This Note shall be governed by and construed in accordance with the laws of the state of North Dakota.
9. Signature
By signing below, the Borrower and Lender agree to the terms of this Note.
Lender's Signature: _____________________________________ Date: ___________
Borrower's Signature: ___________________________________ Date: ___________
PDF Overview
| Fact Name | Description |
|---|---|
| Definition | A promissory note is a written promise to pay a specified amount of money to a designated person or entity at a specified time. |
| Governing Law | The North Dakota Promissory Note is governed by the North Dakota Century Code, specifically Chapter 41-03. |
| Parties Involved | Typically, there are two main parties involved: the borrower (maker) and the lender (payee). |
| Interest Rate | The interest rate can be fixed or variable, and it must be clearly stated in the note. |
| Payment Terms | Payment terms, including the due date and payment schedule, must be explicitly outlined in the document. |
| Signatures Required | Both the borrower and lender must sign the promissory note for it to be legally binding. |
| Enforcement | If the borrower defaults, the lender has the right to enforce the note through legal means, including seeking a judgment. |
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