Massachusetts Unsecured Promissory Note Template

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The Massachusetts unsecured promissory note aids the lender of a monetary balance in getting his balance returned with the addition of interest. The template details the requirements that the borrower will need to follow and the penalties that will follow in the case he or she doesn’t. Because this version is unsecured, the lender has very little financial protection if the borrower were to default on the balance. Because of this, we recommend the lender to only deal with family, friends, and/or those with a high credit score.

How to Write

Step 1 – At the top of the first page, enter the following information regarding the parties and the loan itself:

  • Current Date
  • Name of Borrower
  • Address of Borrower
  • Name of Lender
  • Address of Lender
  • Full Balance of Note
  • Interest Rate (Check [https://eforms.com/promissory-note/ma/] to ensure it is a legal interest rate)

Step 2 – At the Payment Section (section 1), select the payment type for the agreement out of the three possible options. If an option that uses installments is selected, check the box next to either weekly or monthly payments at the bottom of the first section.

Step 3 – For the second (2) and third (3) sections, begin by entering the final due date of the entire balance of the note as well as any outstanding interest/late fees. Then, enter the interest rate that goes into effect if the borrower defaults on the balance. This interest rate must be legal in the state of Massachusetts (to find out if your selected rate is legal, check M.G.L.A. 271 § 49).

Step 4 – At the sixth (6) section, enter how many days after a missed payment are required to pass before a late fee can be issued on the borrower. Directly below that, enter the dollar amount of a late fee.

Step 5 – For the seventh (7) section, enter how many days after a default need to pass before acceleration can occur. Acceleration requires all outstanding payments/interest to be paid immediately by the borrower.

Step 6 – Head to the last page of the template. Here, enter the current day, month, and year followed by all three signatures of the lender, borrower, and witness.

If steps 1-6 have been completed, the agreement will go into full legal effect.