New York Unsecured Promissory Note Template

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The New York unsecured promissory note brings two parties together into a contract stating how the borrower will be required to pay back a lender a loaned amount of money. This template can be used as a legal document once all signatures have been recorded, however, it is worth noting that because this template is unsecured, the lender is at a far greater financial risk. This is because the lender has no guaranteed way of recovering the loaned balance if the borrower enters into default. To help remedy this, the lender should only loan to family/friends and those with a high credit score.

How to Write

Step 1 – At the top of the first page, enter the current date, the names and addresses of the borrower and lender, the full balance of the note, and the note’s interest rate.

Step 2 – Head to the first (1) section and select the payment method for the agreement. The options consist of the following:

  • No Installments – The borrower makes a single payment consisting of the entire balance plus interest.
  • Installments – The borrower makes weekly or monthly payments to the lender for a scheduled amount of time.
  • Interest Only Payments – The borrower makes scheduled weekly or monthly payments that consist of interest only.

[If an installment-using option was selected, check the box next to either weekly or monthly payments and enter the date the first payment will be due.]

Step 3 – In the second (2) section, enter the date that the entire balance must be paid by. This includes any accumulated late fees and accrued interest.

Step 4 – Go to the third (3) section and enter the interest rate that will enter into effect if the borrower misses a payment by more than fifteen days or fails to pay the full amount of the due payment.

Step 5 – Head to the sixth (6) section and enter all required info on late fees into the two empty text boxes.

Step 6 – In the seventh (7) section enter the amount of days needed to pass after a default has occurred before acceleration can occur.

Step 7  Finally, head to the last page of the template and enter/write the following information into the designated empty text boxes:

  • Current Date (Day, Month, and Year)
  • Lender’s Signature
  • Lender’s Printed Name
  • Borrower’s Signature
  • Borrower’s Printed Name
  • Witness’ Signatures and Printed Names

Once all required fields have been completed and all signatures have been recorded, the agreement will enter into full effect.