Hawaii Unsecured Promissory Note Template

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The Hawaii unsecured promissory note is an agreement designed for two parties that adds structure and legality to a transaction involving the loaning of money. The major takeaway from this document is that it is unsecured. This means that if the borrower defaults on the balance, the lender will have no simple and effective way to be reimbursed for the money loaned. To counteract this risk, the lender should ensure the borrower is family or a friend that can be completely trusted.

How to Write

Step 1 – Before heading to the first section, enter information regarding the borrower and lender, then enter the full amount of the balance and its associated interest rate.

Step 2 – At the first (1) section, select the payment method for the agreement. The options consist of No Installments (one single payment of the entire balance plus interest at a predetermined date) Installments (weekly or monthly payments), or Interest Only Payments (weekly or monthly payments of interest until the balance is paid in full).

If the parties select a payment method utilizing installments, select either weekly or monthly payments at the bottom of the first section.

Step 3 – For the second (2) and third (3) sections, enter the final due date of the entire balance, then enter the interest rate that will go into effect if the borrower defaults on the balance.

Step 4 – Proceeding to section six (6), enter how many days are required to pass after a payment date until the lender can issue a late fee. Then, enter the amount of the late fee itself.

Step 5 – For the seventh (7) section, enter the number of days required to pass after a default before acceleration can occur.

Step 6 – Going to the last page of the document, have the lender, borrower, and witness sign their names in the designated spots. Once this has been completed, the agreement will go into effect and the borrower will be responsible for making timely payments to the lender.