Delaware Unsecured Promissory Note Template

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The Delaware unsecured promissory note is very similar to the secured version, although differs greatly in the amount of security given to the lender in the transaction. Incorporated into the document are sections that require both parties to agree on the full balance, the interest rate, and various fees resulting from penalties. The lender should be aware that in the case of a default, he or she has no immediate way to recover the loaned money. However, the lender can bring the borrower to small claims court and/or file the default on the borrower’s credit.

How to Write

Before proceeding to the first step, enter the basics of the transaction at the top of the page. This includes the lender and borrower’s full name and address followed by the full balance and interest rate.

Step 1 – In the first section of the document, the parties need to agree on the payment method. There are three options for the parties to agree on, which include

  • No Installments – The borrower will be required to pay the full balance in one payment.
  • Installments – The borrower makes either monthly or weekly payments to the lender until the balance is fully paid for.
  • Interest Only Payments – The borrower makes payments that consist of interest only until the full balance is reimbursed.

If an option with installments is selected, the parties need to select either weekly or monthly payments – which is located at the bottom of the first section.

Step 2 – In section two (2), enter the final due date for the entire balance.

Step 3 – For sections three (3) and six (6), enter the interest that goes into effect in the case of a default. Then, enter the cost of the late fee for the balance as well as the amount of time that needs to pass before a late fee can be issued.

Step 4 – In section seven (7), enter the time frame in regards to acceleration.

Step 5 – Date the agreement and have the lender, the borrower, and the witness to the agreement sign the document. Once this has been completed, the agreement will go into effect.