Promissory Note - Priori
Maker agrees that fixed interest earned by and payable to Payee Exhibit A to the Deed of Trust (“Property”) or any other document executed in connection with. The position of the maker of a note differs from the acceptor of a bill in that a note and the payee; whereas there is an immediate relation, in case of a bill, only. The maker of a note essentially issues an IOU or a note to another person or company promising to repay the money with interest. The payee of the note or the .
Promissory Notes Promissory Note A promissory note is a written instrument that documents or records a transaction where money is loaned or owed from one party to another. The terms of the loan, the repayment schedule, the interest rate if anywhere the payments are to be made, etc. The note is signed by the person borrowing the money. The note is then kept by the person lending the money as evidence of the loan and the repayment agreement with a copy usually provided to the borrower.
The term commercial paper includes written instruments such as promissory notes or orders such as checks to pay money.
What is a Maker of a Note? - Definition | Meaning | Example
Pay to the order of language is sometimes found in promissory notes e. When this type of language appears in the promissory note i. John Borrower promises to pay to the order of James Lender the sum of …the person signing the note called the maker is agreeing that he will repay the money to the lender or the person the lender designates to receive the payments.
This type of language gives the lender flexibility in designating who will receive the payments on the loan from the borrower. Contracts for the payment of money, commonly referred to as bills and notes, are governed by the ordinary law of contracts.
However, where bills and notes have the quality of being negotiable, they may also be subject to special legislation, embodied in the Uniform Commercial Code, governing such instruments. A Balloon Note is a Promissory Note that has one large payment the balloon payment that is due upon maturity. A balloon note will often have the advantage of a very low interest rate, thus requiring little capital outlay during the life of the loan.
The major problem with such a loan is that the borrower needs to be self-disciplined in preparing for the large balloon payment due when the loan matures.
Of course refinancing the note upon maturity is always a possibility. If any payment of principal or interest on this Note shall become due on a day which is not a Business Day as defined belowsuch payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computing of interest in connection with such payment.
In the event an installment, or the maturity date as set forth herein, is due on the 29th, 30th, or 31st day of the month, for each month which does not have a 29th, 30th, or 31st day, such installment, or the final payment, as applicable, shall be due on the last day of such month.
Payments received after Payee's cut-off times established from time to time or on weekends or bank holidays will be credited as of the next Business Day. Any check, draft, money order or other instrument given in payment of all or any portion of this Note may be accepted by Payee and handled in collection in the customary manner, but the same shall not constitute payment or diminish any rights of Payee except to the extent that actual cash proceeds of such instrument are unconditionally received by Payee.
Promissory Note and Bill of Exchange – Meaning and Difference
This processing fee should be paid once with respect to each return or dishonor. It is further agreed that the imposition of any such processing fee shall in no way prejudice or limit Payee's rights or remedies against Maker under this Note or any of the Security Instruments or any other instrument.
Except as expressly provided herein to the contrary, all prepayments on this Note shall be applied in the following order of priority: Maker agrees that upon the occurrence of any one or more of the following events of default "Event of Default": Maker acknowledges and agrees that it may be required to pay this Note in full without assistance from any other party, or any collateral or security for this Note.
Payee shall not be required to mitigate damages, file suit, or take any action to foreclose, proceed against, or exhaust any collateral or security in order to enforce the payment of this Note.
What is a Maker of a Note?
This Note, and its validity, enforcement, and interpretation, shall be governed by and construed in accordance with Applicable Law, without regard to any conflict of law rules and principles. Specifically and without limiting the generality of the foregoing paragraph, it is expressly provided that: This right of Payee is in addition to any other right of setoff which Payee may have under Applicable Law.
As used herein, the term "Applicable Law" means the laws of the State of Texas and laws of the United States of America in effect from time to time and applicable to this Note. As used herein, the term "Business Day" shall mean any day other than a Saturday, Sunday or federal banking holiday upon which Payee is closed.
Promissory Notes – An USLegal Topic Area
As used herein, the term "Maximum Rate" means the maximum lawful non-usurious rate of interest if any which, under Applicable Law, Payee is permitted to charge Maker on this Note from time to time. It is intended that Chapter of the Texas Finance Code shall be included in the laws of the State of Texas in determining Applicable Law, and including, to the extent permitted by Applicable Law, any future amendments or any new laws coming into effect in the future to the extent a higher rate of interest is permitted by any such amendment or new law.
Except as otherwise provided herein or required by Applicable Law, any notice or communication required or permitted hereunder to be given to either Maker or Payee pursuant to the terms hereof shall be given in writing, sent by i personal delivery, or ii expedited delivery service with proof of delivery, or iii United States mail, postage prepaid, registered or certified mail, return receipt requested, or iv facsimile provided that such facsimile is confirmed by expedited delivery service or by United States mail in the manner previously describedaddressed to Maker or Payee at the address as contained herein or to such other address as either party shall have designated by written notice, sent in accordance with this paragraph at least 30 days prior to the date of the giving of such notice.