Pennsylvania Unsecured Promissory Note Template

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The Pennsylvania unsecured promissory note is a promise from a borrower of a monetary balance to repay the lender in a structured and complete fashion. Because this note is unsecured, the lender is not covered if the borrower enters into default and cannot recover. To help prevent this situation, the lender should screen potential borrowers for strong credit. Lenders that lend exclusively to family and friends is an additional way of preventing defaults.

How to Write

Step 1 – Enter the current date, the borrower’s full name and address, the lender’s full name and address, the balance of the note, and the note’s interest rate.

Step 2 – Head to the first (1) section and put a checkmark next to the payment option you would like to utilize for the duration of the agreement. The options are as follows:

No Installments – Borrower makes a single lump sum payment to the lender.

Installments – Borrower makes routine weekly or monthly payments to the lender.

Interest Only Payments – Borrower makes payments that consist of only interest in weekly or monthly increments.

Step 2 continued – If an option that uses installments was selected, put a checkmark next to either weekly or monthly payments and enter the date that the first payment will be due.

Step 3 – For the second (2) and third (3) sections, enter the final due date that all debt must be paid by. Then, enter the interest rate that will automatically go into effect if the borrower enters into default or misses a payment by more than fifteen days.

Step 4 – Head to the sixth (6) section and enter the time span required to pass regarding late fees. Then, enter the dollar amount of a late fee.

Step 5 – Enter the time span required for acceleration in the seventh (7) section.

Step 6 – On the last page, enter the current date (including the day, month, and year) followed by the signatures of the lender, borrower, and witness. Once all names have been written in their designated locations, the agreement will go into full effect and the borrower will be responsible for making payments.