Maine Unsecured Promissory Note Template

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The Maine unsecured promissory notes bring two parties together in a legal contract requiring the borrower in the agreement to pay the lender a loaned amount of money by a predetermined due date. If the borrower fails to make payments on time, the lender is allowed to issue late fees and/or put an acceleration into effect. This note is unsecured, meaning the lender has no backup in the case of a default on the balance. Because of this high-risk situation, it is recommended that the lender loans to family/friends or those with high credit.

How to Write

Before heading to the first section in the note, enter the current date on the top of the document followed by the lender and borrower’s full names and addresses. Then, enter the full balance of the note as well as the interest rate that will be in effect for the duration of the agreement.

Step 1 – Select the payment type for the agreement. The options consist of:

No Installments – One single payment including any accrued interest and late fees.

Installments – The borrower makes either weekly or monthly payments with interest until the balance is paid off.

Interest Only Payments – The borrower makes payments of only interest weekly or monthly.

If you selected a payment option that utilizes installments, put a check in the box next to either weekly or monthly payments, then enter the day that you would like the payments to be due.

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

Step 3 – Enter the interest rate in the case of a default on the balance. This interest rate stays in effect until the borrower is no longer in default.

Step 4 – Head to section six (6), then enter the time span regarding late fees and the monetary cost of a single late fee.

Step 5 – In section seven (7), enter the time span for acceleration. An acceleration can occur if the borrower has been in default for a certain amount of days. Once the acceleration is active, all outstanding debts will be due immediately.

Step 6 – Finally, enter the current date and the signatures of the lender, borrower, and witness.