Note Payable for Virginia


and hereby enter into and execute this agreement (the "Agreement" or "Promissory Note") as of _____________.

    1. Borrower
    2. Lender
  2. PROMISE TO PAY. FOR VALUE RECEIVED, Borrower promises to pay Lender a total principal amount of USD in return for receiving the following from Lender: _____________.
  3. INTEREST. No interest shall be due or payable under the terms of this Agreement.
  4. METHOD OF PAYMENT. Acceptable methods of payment are as follows: .
  5. PAYMENT AND NOTICE ADDRESSES. All payments must be delivered to Lender's address stated above or any place or in any other manner as may be designated from time to time in writing by Lender. Notices will be in writing and delivered in person, sent by facsimile, or sent by reputable overnight delivery service to each party's respective address stated above or to any place or in any other manner as may be designated from time to time in writing by the parties.
  6. PREPAYMENT. Borrower may prepay this Promissory Note in full or in part at any time without incurring a premium or penalty. All prepayments will be applied first to outstanding late fees, if any, next to interest, if any, and thereafter to the unpaid principal balance of the loan.
  7. COLLATERAL. This is an unsecured agreement.
  8. RECOURSE. THIS PROMISSORY NOTE ALLOWS LENDER TO SEEK RECOURSE AGAINST ANY PERSONAL ASSETS OF BORROWER. The personal assets are therefore subject to the payment of this debt.
  9. DEFAULT AND ACCELERATION. Should Borrower default under or otherwise breach this Promissory Note and not cure said default or breach on or before _____________ days after Lender gives Borrower written notice thereof by personal delivery or certified mailing, all principal balance remaining unpaid and interest accruing thereon will, at the option of Lender, become immediately due and payable to Lender. The date of notice will be the date of delivery or the date of mailing. No delay or failure in giving notice of said default or breach will constitute a waiver of the right of Lender to exercise said right in the event of a subsequent or continuing default or breach. In addition to the events of default specified herein, the following events, without limitation, will constitute a default: Borrower's filing any voluntary or involuntary petition for relief under the United States Bankruptcy Code, the death or dissolution of either party, and/or failure to pay monies owed in full on or before the Due Date.
  10. ATTORNEY FEES AND COURT COSTS. In the event of such default or breach, Borrower promises to pay Lender all collection and/or litigation costs incurred, including reasonable attorney fees and court costs, whether or not a judgment or a lawsuit is filed.
  11. SUCCESSORS AND ASSIGNS. Lender may transfer this Agreement to another holder without notice to Borrower; however, Borrower will not be liable to any assignee for any amounts greater than it would otherwise be liable for under this Agreement. Borrower agrees to remain bound under the terms of this Agreement to any subsequent holder of this Agreement. Borrower covenants and warrants not to assign its rights or obligations under this Agreement without Lender's prior written consent. Each Borrower and cosigner identified in this Agreement will be jointly and severally liable for the repayment of the debt described herein, and the terms of this Agreement will be equally binding upon and will inure to the benefit of the Parties and their heirs, executors, administrators, successors, and permitted assigns.
    1. Governing Law. The parties agree that the laws of the State of _____________ will govern this Agreement without regard to its conflict-of-law provisions. Any claims or disputes concerning this Promissory Note will, at the sole election of Lender, be adjudicated in _____________ County.
    2. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any and all other prior and contemporaneous agreements and understandings, both written and oral, between the parties.
    3. Amendment. No amendment, modification, termination, or waiver of any provision of this Promissory Note will be effective unless it is in writing and signed by both Borrower and Lender.
    4. Time of Essence. Time is of the essence concerning all provisions contained in this Agreement.
    5. Waivers. Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and protest, and all other demands and notices, in connection with the delivery, acceptance, performance, or other enforcement of this Promissory Note.
    6. No Implied Waiver; Cumulative Remedies. Lender's failure to exercise any right or remedy provided in this Promissory Note will not be construed as a waiver of any future exercise of that right or exercise of any other right or remedy to which Lender may be entitled. No delay or omission on the part of Lender in exercising any right hereunder will operate as a waiver of any other right under this Promissory Note. No right conferred upon Lender by this Agreement will be exclusive of any other right referred to herein or now or hereafter available at law, in equity, by statute or otherwise, and all remedies will be cumulative and not in the alternative.
    7. Severability. If any provision of this Agreement is held by a court of law to be illegal, invalid, or unenforceable, then that provision will be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and the legality, validity, and enforceability of the remaining provisions of this Agreement will not be affected or impaired thereby.
    8. Headings. The headings used in this Promissory Note are provided for convenience only and will not be used in construing the meaning or intent of the corresponding provisions.
    9. Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile transmission or by e-mail delivery, each of which when executed and delivered shall constitute an original of this Agreement, but all the counterparts shall together constitute the same agreement. No counterpart shall be effective until each Party has executed at least one counterpart.

[Signature page to Promissory Note]

IN WITNESS WHEREOF, the parties have executed this Promissory Note on _____________.



Instructions for Your Note Payable

Creating Your Form with LegalNature

You will start by entering the relevant party information. The Borrower, sometimes called the note "Maker," is the party promising to pay back the Lender in the note payable.

Next you will fill out the transaction details. Be as specific as possible in describing what the Borrower is receiving from the Lender, whether it is a mortgage loan, goods, services, etc. You will then describe how the Lender expects to be repaid. You will also have the option to include miscellaneous terms and conditions later in the form builder should you need to further customize your agreement.

Then you will describe whether the Lender is requiring any collateral to ensure repayment. For example, in a mortgage agreement the collateral is the house itself. If the Borrower defaults on repayment, then the Lender gets to keep or sell the collateral.

Lastly, you will be asked about including a notary and witness. It is always recommended to include a notary to help prove the validity of the document should you ever need to. For the same reason, including a witness is helpful. If possible, it is a good idea to include both.

Executing Your Note Payable

After you are done filling out the form, simply have the Borrower, Lender, and any notary and witness available sign the document in each other's presence. Again, although a notary and witness are not required in most jurisdictions, it is always a good idea to include them. When the document has been signed and witnessed, you are done! Make sure the Borrower and Lender each get a copy.

Please note that the language you see here changes depending on your answers to the document questionnaire.

Note Payable

A note payable is essentially a promise to repay made from a borrower to a lender. The borrower makes the promise in return for money, goods, or services. Individuals and businesses use notes payable often to raise capital for an investment. Notes payable are also always used in connection with mortgage agreements and deeds of trust to specify the important terms of the deal.

When finished, the note will clearly list the essential terms of the transaction, including the loan amount, interest rate, due date, and payment structure. With LegalNature’s note payable you can indicate whether payments are due monthly, in one lump sum, or on demand by the lender. You also have the option to give information on any collateral required by the lender.

LegalNature will help you quickly draft a strong note payable that will provide you with a thorough legal agreement you can rely on.

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user guide icon Help Guide

This guide provides an explanation of the key terms and considerations when creating a note payable. Here we elaborate on the step-by-step guidance we provide you when answering our document questionnaire.

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checklist icon Checklist

Review the basic steps you will need to follow before and after completing a note payable. This includes tips on gathering information, signing and witnessing your agreement, making periodic updates, and completing related documents.

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