Answers to Frequently Asked Promissory Note Questions
Generally, the language of the Promissory Note itself would have control over any payment schedule that is not incorporated directly into the note.
But if the amortization schedule is incorporated directly into the Promissory Note (by language in the Note that makes direct reference to the schedule), then there is an ambiguity as to the obligations of the parties.
There is no simple form a person can file to obtain a judgment against a promissory note in which a party has defaulted. Obtaining a judgment is not “automatic”; a judgment is a court proceeding that allows the defaulting party to reply and to defend himself.
Divorce has no bearing on the validity of a lawfully signed promissory note. If a person’s signature appears on a promissory note, that person is responsible for adhering to the terms outlined within the note. Get complete details on Standard Legal’s Promissory Note legal forms software here.
Creating a Promissory Note backed, secured or collateralized with real estate may be a problem, as promissory notes are not fully structured for collateral.
A holder of a promissory note is permitted to bring a lawsuit in court to collect money that is due and owing. However, if a promissory note does not also include a mortgage note on the real property “securing” the loan, the holder of the Promissory Note may not be able to foreclose on the property or take any action to remove the owner or tenant.
Yes, the promise of repayment as documented in a Promissory Note does not necessarily have to be for cash that has been loaned. A promise to pay for services is also an appropriate use for a Promissory Note. Complete details on the types of documents available can be found under the LEARN MORE button on … Read more
On its own, a signed Promissory Note has the legal force of a contract. But to strengthen the validity and ensure the enforceability of the Promissory Note, there are steps the lending maker can take with Witnesses, signatures and even a notary.
A promissory note is a contract between two people that outlines the terms of repayment on lent money. Such a contract must be enforced as would any typical breach of contract: through court.
Standard Legal is unaware of any situation where a person could simply present a promissory note to a bank or employer to collect on money owed through the garnishment of wages or accounts.