LAWYER IN ORLANDO, FLORIDA
Basically, a promissory note is a promise made on the part of one party to pay another party. Generally, a promissory note will specify the amount of money that must be paid, when the amount must be paid, the interest rate that will be paid, and other information about both parties involved in the contract. Most individuals encounter promissory notes when borrowing money from a bank, such as when you get a mortgage. However, there may be occasions when individuals may borrow money from other individuals or when companies may borrow from other companies. In this case, promissory notes may be executed as well. If you are planning on lending another person or company money or if you are in the process of signing a promissory note, it is important to understand your rights and responsibilities. Legal Counsel, P.A. employs a promissory note lawyer in Orlando, Florida who can help you draft a promissory note and who can review a promissory note before you sign it to help you understand your responsibilities and rights. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
Generally, there are two main types of promissory notes: secured promissory notes and unsecured promissory notes. Secured promissory notes include auto loans and mortgages. The security in these cases would be the car or the house or land. These loans are secured because they are recorded along with a land deed, a mortgage, or other deed and these are often recorded by government entities. Unsecured promissory notes, however, are not officially recorded. The promissory note itself is the thing of value. When a person fails to pay a secured promissory note, the holder of the promissory note may be able to seize the property secured by the note—say, a home, car, or parcel of land. If you are lending money to another person or entity, it is important to understand what kind of promissory note is required and the legal process required to drawing up such a note. Legal Counsel, P.A. employs a promissory note lawyer in Orlando, Florida who can assist you with determining which kind of loan you are making, which kind of loan you are signing, and your rights and obligations. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
Most promissory notes will include the name of the borrower and the name of the entity or person making the loan. The promissory note should include the amount of the note (the amount of money being loaned), the amount to be repaid, the interest rate on the loan, the first date payment is due, how often payments should be made, and the term of the loan. A promissory note should also include information about how penalties for late charges will be assessed. When creating a promissory note, you’ll need to consider how you’ll assess interest. There are different ways you can assess interest on a loan, so it is important to understand which method you will use. Furthermore, if you are signing a loan, it is important to understand your obligations for each part of the loan.
A promissory note may include other provisions. If the interest rate is variable, information about the variable rate must be included in the note. If there is a prepayment penalty, this must also be included in the note. Some notes may require paying the full amount of the loan by a certain date, and sometimes the monthly payments might leave the borrower with a large payment when the loan becomes due (balloon payment). There are many different ways promissory notes can be configured. If you are signing a promissory note, it is important to not make assumptions.
If you are making out a loan, you may also be subject to certain legal obligations. Before making a loan, consider your rights and options, and protect yourself. While you might be tempted to use online boilerplate templates for your loan, these templates may not consider local laws and regulations, and they may not be appropriate for your given needs. Legal Counsel, P.A. employs a promissory note lawyer in Orlando, Florida who can assist you. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
If you are starting your own business, some business owners choose to take out loans. In some cases, you might turn to a bank to get start-up money. In other instances, business owners may turn to family, friends, and other businesses to get start-up money through a loan. However, when getting a loan from family and friends or from other companies, having a clear promissory note in place not only protects your lenders, it also protects your company. Some business owners take out loans in their company’s name to protect their personal assets. Others take out loans to avoid having to go into partnership with other individuals or to avoid having to sell shares in their company. Whatever your reasons, having a valid promissory loan in place is important to protect all parties involved. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321 for all your promissory note needs.