What is a promissory note in Georgia?

Promissory note in Georgia is a written document in which the borrower agrees to repay a loan to a lender on a set date. A promissory note may be secured or unsecured within the state of Georgia: A secured promissory note offers collateral as security in the event of nonpayment of the loan. In an unsecured promissory note the lender cannot take possession of any of the borrower’s properties if the borrower defaults.

Why use a secured promissory note Georgia?

Using a secured promissory note allows the borrower more security of payment from the lender since the borrower is given an asset as collateral. If the borrower defaults and goes into default, the lender may very well take ownership of the property and dispose of it as it wishes.

How long is a promissory note valid in Georgia?

The Georgia statute of limitations states that a promissory note counts as a written document. Therefore, it’s valid for a maximum of six (6) years before becoming void.

How to enforce a promissory note in Georgia?

A promissory note is a legally binding document within the state of Georgia, thus creating an obligation between the parties to perform what’s contained therein. In the event the borrower refuses to make payment, the lender may hire a debt collector or file a lawsuit to obtain the balance due. Additionally, if there’s collateral on the note, the lender may take ownership of the note.

Promissory Note Template Georgia

Prepared for:

[Borrower.FirstName][Borrower.LastName]

Created by:

[Lender.FirstName][Lender.LastName]

1. Identification of the Parties

This Promissory Note (the "Note") entered as of (Date), by and between

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

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

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

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

The laws of the State of Georgia regulate this Note.

Taking into account the money received, [Borrower.FirstName][Borrower.LastName], who shall be entitled as "borrower", undertakes to pay to [Lender.FirstName][Lender.LastName] entitled as the "Lender" the amount of (Loan.Amount) plus interest thereon, following the terms to be set forth hereinafter in this document.

Payment of the principal amount and interest on this note and any additional charges are due on or before (Due.Date). In accordance with the laws of the State of Georgia, the interest charged shall be (LegalInterest.Amount)%.

Any payments made to cover the costs of this note will first be credited to the interest earned on this note and then to the remaining principal balance.

2. Payment Plan

This note can be paid in installments equal to (Payment.Amount). For this purpose, it is indicated that the first payment will be made on (FirstPayment.Date) and will be kept consecutively every (Payment.Period).

3. Payment Guarantees

By way of security, Borrower agrees to pay the principal amount and interest derived therefrom in full. To secure this note, the Lender will receive (Collateral.Property) which may be taken as payment in the event the borrower defaults.

4. Extra Clauses

5. Signatures

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

Signature

MM / DD / YYYY

[Lender.FirstName][Lender.LastName]

Signature

MM / DD / YYYY

[Borrower.FirstName][Borrower.LastName]

Signature

MM / DD / YYYY

[Witness.FirstName][Witness.LastName]

Promissory Note Template Georgia

1. Identification of the Parties

2. Payment Plan

3. Payment Guarantees

4. Extra Clauses

5. Signatures