Promissory Note (Loan repayable in installments without interest) - maderacountylibrary 2025

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A non-interest-bearing promissory note involves either truly having 0% interest or else already including a flat fee or rate within the notes face value. Therefore, the principal amount and maturity amount of the promissory note are the same.
There are some circumstances that can cause this legal document to become null and void. Here are some potential erros to avoid. Unclear clauses, missing signatures, unfair terms (e.g., excessive interest rates), or losing the original document can render a promissory note invalid and unenforceable.
term-loan agreement. A promissory note that requires the borrower to repay the loan in specified installments.
A promissory note is a written promise to pay a specified amount of money with, or without, interest at a stated time or on demand. The main purpose of a promissory note is to serve as written evidence of the amount loaned, the interest rate, if any, and the terms under which the loan is to be repaid.
The minimum interest rate varies based on the length of the loan. If you lend the money at no interest, the IRS can consider the loan a gift, making you liable for gift taxes. The repayment schedule that the borrower must follow.
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California Promissory Note Requirements The names and addresses of both borrower and lender. The principal loan amount and applicable interest rate. Repayment terms, including installment frequency and due dates. Late fees and penalties in case of missed payments.

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