Connecticut Unsecured Promissory Note Template

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The Connecticut unsecured promissory note is a document developed for the purpose of putting two parties into a contract in regards to a loan to help ensure timely payments are made and the terms and conditions of the transaction are fully understood. The lender should be aware that there is no embedded security within the document. This means that if the borrower does not make payments or defaults on the balance all together the lender has no immediate way of recovering his or her money.

How to Write

Step 1 – At the top of the page, enter the exact date followed by the full name of the borrower and his or her address, the full name and address of the lender, and the full balance of the loan as well as its interest rate. Ensure a legal interest rate is selected by checking 37 CT Ch. 673 Sec. 37-4.

Step 2 – For section one (1), select the payment method. The options consist of

  • No Installments – One payment that covers the entire balance owed by the borrower.
  • Installments – Either weekly or monthly installments payed by the borrower.
  • Interest Only Payments – Requires the borrower to pay the interest on the balance until the full balance is payed for.

Next, select either weekly or monthly payments followed by the time span for the one chosen. If you selected the No Installments option, disregard the previous statement.

Step 3 – For sections two (2) and three (3) enter the final due date for the balance followed by the interest rate applied in the case of a default on the balance.

Step 4 – In section six (6), enter the details regarding late fees that are applied if the borrower doesn’t make a payment on time.

Step 5 – For the seventh (7) section, enter the amount of time that has to pass after a default on the balance before the lender can issue an acceleration.

Step 6 – To complete the agreement, date the agreement and have the lender, borrower, and witness sign the agreement. Once the signatures have been copied to the agreement, it will go into effect and the borrower will be liable for making payment(s) to the lender.