New Jersey Unsecured Promissory Note Template

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The New Jersey unsecured promissory note binds two parties in a contract that states how the borrower will repay a loaned amount of money to a lender. Additionally, the template includes areas for the parties to agree on consequences for being late on payments and/or entering into default. The lender does not receive security in this version. Because of this, the lender is at risk for losing the loaned balance if the borrower cannot recover from entering into default. The best way of preventing this potential scenario is for the lender to screen potential borrowers by ensuring their credit score is strong and by working with friends and family.

How to Write

At the top of the first page, enter the following information:

  • Current Date
  • Name of Borrower
  • Address of Borrower
  • Name of Lender
  • Address of Borrower
  • Full Note Balance
  • Interest Rate

Step 1 – Once the information at the top of the first page has been completed, head to section one (1) and select the payment method that the borrower will be required to follow throughout the course of the agreement. If you choose an option with installments, select either weekly or monthly payments and enter the day the first payment will be due.

Step 2 – In the second (2) section, enter the final due date that the entire balance will be due. This date also includes any accrued late fees and accumulated interest on the balance.

Step 3 – For the third (3) section, input the interest rate that will proceed into effect if the borrower enters into default on the balance.

Step 4 – Head to the sixth (6) section and enter all required information on late fees into the two empty text boxes.

Step 5 – For section seven (7), enter the amount of days that need to pass after a default on the balance until the lender can issue an acceleration on the balance.

Step 6 – Head to the last page of the agreement. Here, enter the current date followed by having the lender, borrower, and witness write their printed and signed names on the document. Once all signatures have been recorded, the agreement will go into full effect and the borrower will be responsible for making payments to the lender.