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Alabama Promissory Note Templates

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The Alabama promissory note templates are documents that verify that a loan was given to an individual for the purpose of repayment over a period of time. The time period and interest rate are to be negotiated by the parties along with any security to be provided (if any) by the borrower.

Usury Rate – The maximum interest rate that can be charged is six-percent (6%) if the Note is longer than 1-year and 8% if greater. Minimum amount is $100 to qualify.

Laws – Chapter 8 (Interest and Usury)

Types

Secured Promissory Note – Allows the lender to hold something of value if the borrower does not pay back the amount loaned.

Unsecured Promissory Note – Usually for family, friends, or those with a high level of credit. There is no property that is guaranteed if the note becomes in default.

How to Write

Step 1 – Begin by downloading the document – Enter the following information:

  • The start date of the document in dd/m/yy format
  • Borrower’s name
  • Mailing address
  • AND
  • Enter the name of the lender
  • Mailing address
  • AND
  • Lender shall enter the principal amount of the loan
  • Enter the annual percentage rate

Step 2 – Payments – Provide the date (in dd/m/yy format) in which the full balance of the loan is due (include any late fees)

Installments – Check the box indicating the mode of repayment:

  • Provide the applicable amount
  • should the repayment be an installment agreement, check the box stating the agreed frequency of repayment
  • The lender shall enter the late fee expected to be paid by the borrower if the payment is not on time

Step 3 –  Security – Submit

  • The lender will check the box stating the level of security
  • If this loan should be considered “secure,” enter the agreed property that will be provided in order to secure the loan
  • The borrower must carefully review the remainder of this section

Step 4 – Titled Sections – The borrower must carefully read all of the titled sections as follows:

  • Interest Due in the Event of Default
  • Allocation of Payments
  • Prepayment
  • Acceleration (and 6A. – Security)
  • Attorney’s Fees and Costs
  • Waiver of Presentments
  • Non-Waiver
  • Severability
  • Integration
  • Conflicting Terms
  • Notice
  • Co-Signer – Select and check the applicable box – (If there shall be a co-signer, check the box. Enter the name of the Co-signer)
  • Execution
  • Governing Law – Enter the state where the note will be governed

Step 5 – Signatures – All signatories must sign in the presence of a witness – Submit the following required information:

  • The Lender’s signature
  • The date of lender’s signature in mm/dd/yyyy format
  • Lender’s printed name
  • AND
  • The Borrower’s signature
  • A date of signature in mm/dd/yyyy format
  • Enter the borrower’s printed name
  • AND
  • Submit the Co-signer’s signature (if any)
  • The date of signature in mm/dd/yyyy format
  • The Co-signer’s printed name
  • AND
  • The Witness must provide their signature
  • Provide a date of signature in mm/dd/yyyy format
  • Witness’ printed name

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