|Principal amount: $ 100,000|
FOR VALUE RECEIVED, I, Johnny (Borrower) promise to pay Mike (Lender) the sum of One Hundred Thousand Dollars ($100,000), and interest at the yearly rate of 10 % on the unpaid balance as specified below.
Repayment shall be made in 5 monthly installments, consisting of $20,000 per installment on the 7th day of each month and continue through for 5 months, or until the principal is paid in full.
If I, Johnny, fail to make an installment payment when due or fail to comply with any other term of this promissory note, the loan will be considered in default. A late penalty charge of $200 Dollars per month will be assessed until the account is brought current inclusive of the late charges, interest and applicable fees.
I, Johnny, agree that until the principal and interest owed under this promissory note are paid in full, this note will be secured by the __________ (describe property, such as a car or a house.)
Payments will be applied first to interest and then to principal.
This note may be prepaid by me at any time in whole or in part without premium or penalty.
In the event of my death, the unpaid indebtedness remaining on the note shall be canceled.
If Mike prevails in a lawsuit to collect on this note, I will pay Lender’s court costs, collection agency costs, and attorney’s fees in an amount the court finds to be reasonable.
IN WITNESS WHEREOF, I set my hand under seal this __th day of ___, 20__ and I acknowledge receipt of a completed copy of this instrument.
Permanent Address: _________
Social Security Number: ______
Driver’s License Number: ___________
Notary Public – SEAL