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The lender, however, must give a notice for the demand. The borrower is obligated to repay the loan upon the lenders request. Installment Promissory Note: This note requires the borrower to repay the loan in periodic installments over a specified period of time, typically with a fixed payment schedule.
Some promissory notes require the payment of the full amount owed, plus interest, on a certain date. If the promissory note requires that periodic payments be made, such as quarterly, monthly, or even weekly, it is called an installment promissory note.
Promissory notes dont have to be notarized in most cases. You can typically sign a legally binding promissory note that contains unconditional pledges to pay a certain sum of money. However, you can strengthen the legality of a valid promissory note by having it notarized.
The property that secures a note is called collateral, which can be either real estate or personal property. A promissory note secured by collateral will need a second document. If the collateral is real property, there will be either a mortgage or a deed of trust.
A Promissory Note with Installment Payments is a lending contract that sets terms for a loan to be repaid in installments. This Promissory Note specifies that the loan will be paid back with consistent, equal, payments. Whether youre the lender or the borrower, you know exactly what each payment will be.
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A promissory note is a documented promise to repay borrowed money. Promissory notes are binding legal documents used to protect both the lender and the borrower. The promissory note is paper evidence of the debt that the borrower has incurred.
Generally speaking, promissory notes can be categorized as secured (backed by collateral) or unsecured. Common types include promissory notes for mortgage loans, federal student loans (also known as a master promissory note), auto loans, and personal loans between friends or family, among other potential uses.
In preparing a promissory note for use as earnest money, a licensee must make the note payable upon the sellers acceptance of the offer or payable within a stated time after the sellers acceptance. Absent a written agreement to the contrary, the note must be made payable to the seller.

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