Toolkit: Plan, Launch, and Build

Unsecured Promissory Note

This is an agreement whereby a borrower promises to repay a lender for a loan. This agreement is unsecured, which means that the borrower does not provide the lender with a security interest in any property as collateral for repayment. Additionally, this note can be customized to provide for the repayment terms that the parties agree upon. This agreement can be used by individuals or small businesses that want to provide a lender an unsecured promissory note ensuring the repayment of a loan.



Unsecured Promissory Note
View entire document as plain text
This is an agreement whereby a borrower promises to repay a lender for a loan. This
agreement is unsecured, which means that the borrower does not provide the lender
with a security interest in any property as collateral for repayment. Additionally, this
note can be customized to provide for the repayment terms that the parties agree upon.
This agreement can be used by individuals or small businesses that want to provide a
lender an unsecured promissory note ensuring the repayment of a loan.
                                                                                                     ©
                                                                                                     ©
                                                                                                     C
                                                                                                     o
                                                                                                     C
                                                                                                     p
                                 Promissory Note – Unsecured                                         o
                                                                                                     y
                                                                                                     p
This Financing Agreement (the “Agreement”), which is made and entered into as of the                 r
                                                                                                     y
_________ __, 20__, by and between _______________ (“Lender”), a ___________ [state]                 i
                                                                                                     r
_________________[entity], and _____________________ (“Borrower”), a ___________                     g
                                                                                                     i
[state] _________________[entity], hereinafter collectively referred to as (the “Parties”).          h
                                                                                                     g
                                                                                                     t
                                                                                                     h
WHEREAS Borrower owns and operates a _______________________________.                                t
                                                                                                     E
WHEREAS Borrower wishes to establish a revolving credit facility with Lender in the amount of        n
                                                                                                     B
[AMOUNT];                                                                                            v
                                                                                                     i
                                                                                                     i
                                                                                                     z
WHEREAS Lender wishes to advance the requested funds to Borrower in exchange for good and            s
                                                                                                     T
valuable consideration;                                                                              i
                                                                                                     r
                                                                                                     o
                                                                                                     e
WHEREAS it is desirable and in the best interests of the Borrower to enter into the aforesaid        n
                                                                                                     e
credit facilities; and
                                                                                                     S
                                                                                                     I
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein,              B
                                                                                                     n
it is agreed as follows:                                                                             S
                                                                                                     c
                                                                                                     .
                                                                                                     .
Section 1. Advanced Funds. Lender shall establish in favor of Borrower a facility of
[AMOUNT] which Borrower can draw down, on a revolving basis.                                         2
                                                                                                     2
                                                                                                     0
                                                                                                     0
Section 2. Interest Rate. Any and all advanced funds shall bear interest at a rate of [__] percent   0
                                                                                                     0
per annum.                                                                                           4
                                                                                                     8
                                                                                                     .
                                                                                                     .
Section 3. Method of Loan Repayment. Borrower shall make all payments called for under this
Agreement by sending check or other negotiable instrument made payable to the following              A
                                                                                                     A
individual or entity at the address indicated:                                                       l
                                                                                                     l
                                                                                                     l
                                                                                                     l
____________________________
                                                                                                     r
                                                                                                     r
____________________________
                                                                                                     i
                                                                                                     i
____________________________
                                                                                                     g
                                                                                                     g
____________________________
                                                                                                     h
                                                                                                     h
                                                                                                     t
                                                                                                     t
If Lender gives written notice to Borrower that a different address shall be used for making
                                                                                                     s
                                                                                                     s
payments under this Agreement, Borrower shall use the new address so given by Lender.
                                                                                                     r
                                                                                                     r
Section 4. Default. Borrower's failure to pay any amount due as principal or interest on the date
                                                                                                     e
                                                                                                     e
requir

Documents are provided by DocStoc and are not a product of Businessweek editorial