About This Doc
A promissory note is a legal document that sets forth the terms and conditions for a person to lend funds (lender) to another person (borrower) and upon which the borrower will repay the funds borrowed (either in installment payments or upon demand), including any interest or penalties.
A Promissory Note is generally utilized by persons when lending or borrowing funds to legally document the terms of the loan, including repayment and interest.
9to5 currently has both installment and demand forms of Promissory Notes available depending on the type of borrowing matter:
- Single Lender and Single Borrower – individual person lends money to another individual.
- Single Lender and Multiple Borrowers – individual person lends money to other individuals.
- LLC Lending to/Borrowing from an Individual – limited liability company lends money to/borrows from an individual person.
- LLC Lending to/Borrowing from an Owner or Officer of the LLC – limited liability company lends money to/borrows from a person who is a member, manager, or other “interested party”.
- LLC Lending to/Borrowing from Other Business Entity – limited liability company lends money to/borrows from another business entity.
A Promissory Note will generally include: the parties (people or entities) involved, amount of the loan, type of interest and rate, repayment terms, governing law, date and signatures.
See our Resources Section for more detailed information on a Promissory Note, including types of repayment and interest, documentation, typical information included, examples of use of the forms, and other related information.
Please consult with a lawyer to ensure compliance in your jurisdiction.