Promissory Note Template California

This Promissory Note (the "Note") entered as of [Document.CreatedDate], by and between

​[Borrower.FirstName][Borrower.LastName] (the Borrower),

being able to send mail to [Borrower.StreetAddress][Borrower.State][Borrower.City][Borrower.PostalCode], and

​[Lender.FirstName][Lender.LastName] (the Lender),

being able to send mail to [Lender.StreetAddress][Lender.State][Lender.City][Lender.PostalCode].

The laws of the State of California regulate this Note.

The Parties acknowledge receipt and sufficiency of the mutual covenants and agreements. They further assent to all other essential terms included in this agreement. Thus, both parties have reached a mutual agreement with the following terms:

Promise to Pay

The Borrower promises to pay to the order of the Lender the Principal sum of (Principal Amount) Dollars ($(Principal Amount)) (the "Principal"), together with Interest on the unpaid Principal balance at the rate of (Interest Rate)% per annum, calculated based on a 365-day year for the actual number of days elapsed (the "Interest").

Payment Terms

The Borrower will make payments of the Principal and Interest in equal monthly installments of (Amount) United States Dollars ($(Amount)), starting on the (Date).

The Borrower will make regular payments on the same day of each following month. This will remain until the Borrower has repaid both the Principal and the Interest.

(a.) Apply all payments to accrued Interest and then to the principal balance.

(b.) Borrower may prepay all or any part of the Principal balance and accrued Interest without penalty.

Default Interest Due

In the event of a default in payment, the Interest Rate shall increase to

interest at a rate of (Interest Rate)% per annum (the "Default Interest Rate")

calculated based on a 365-day year for the actual number of days elapsed

on the unpaid Principal Balance, effective as of the date of default.

Late Fees and Default

The Borrower will pay a late fee if the Lender doesn’t receive a payment within (Number) days of its due date. The late fee will be (Amount in words) United States Dollars ($(Amount in figures)) for each late payment (the "Late Fee").

A default under this Note will occur if any of the following events take place:

(a) Borrower fails to make any payment when due;

(b) Borrower breaches any other term, covenant, or condition in this Note;

(c) The borrower cannot repay their debts or is facing bankruptcy or insolvency.

Statute of Limitations

The Parties accept and confirm that the limitation period to bring an action concerning this Note is four (4) years. Calculate this time frame from the default date or the last payment, whichever occurs later. California Code of Civil Procedure Section 337 outlines this rule.

Acceleration

When a default occurs, the Lender can declare the entire unpaid Principal Balance due and payable. They can also declare all accrued Interest immediately due and payable. The Lender can do this without notice or demand.

Waiver

Borrower and any endorsers or guarantors of this Note waive presentment, a notice of dishonor, protest, and all other demands. All the Parties also waive the notifications about this Note's delivery, acceptance, performance, default, or enforcement.

Severability

If a court rules any part of this Note invalid, the remaining aspects remain in effect. The remaining provisions will continue in full force and effect, preserving the intent and purpose of this Note.

Amendments

Amendments or modifications to this Note will be binding only when documented in writing and signed by both Borrower and Lender.

Governing Law

The laws of the State of California will regulate the provisions and terms of this Note. California's law will resolve any disputes or interpretations arising from this Note. This governing principle will apply without considering the state's conflict of laws rules.

Binding Effect

This Note will be a binding agreement for the Parties and their related successors, assigns, heirs, and personal representatives. It will inure to the benefit of all involved parties. The Borrower, the Lender, and a Witness will sign this Note.

Each Party has executed this Note as of the Effective Date.

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​[Witness.FirstName][Witness.LastName]​