Colorado Unsecured Promissory Note Template

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The Colorado unsecured promissory note is a document typically utilized by two parties who are planning on engaging in the loaning process. The note gives three options for payback and is agreed upon by both parties before the signing of the agreement. The lender should be fully aware that this document does not include security – this means that if the borrower defaults on the balance, the lender will have no direct means of recovery his or her money. Because of this, the lender should only use this agreement if the borrower can be thoroughly trusted.

How to Write

Step 1 – Enter the current date followed by the lender and borrower’s info. Then enter the full balance of the loan and its associated interest rate. Check Colorado’s usury rate found at C.R.S. 5-12-101 and C.R.S. 5-12-103 to ensure you are using a legal interest rate.

Step 2 – In section one (1), determine the payment structure you would like to use. If you decide to utilize an option using installments, enter the dates the borrower will be required to make payments – either weekly or monthly.

Step 3 – In the second (2) section, enter the final due date of the entire balance.

Step 4 – Proceeding to the third (3) section, enter the amount of interest due in the case of a default. This interest rate will stay in effect until the borrower is no longer in default.

Step 5 – For sections six (6) and seven (7), enter the cost of a late fee as well as the time required to pass before a late fee is issued. For the seventh section, enter the amount of days that have to pass after a default until the lender has the option to issue an acceleration.

Step 6 – For the final section, enter the current date. Then have the lender, the borrower, and the witness sign the document. Once their signatures have been recorded, the agreement will go into effect and the borrower will be required to make payments.