Rhode Island Unsecured Promissory Note Template

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The Rhode Island unsecured promissory note is a promise from the borrower (of a monetary balance) stating that he or she will pay back the lender the original balance plus interest in a predetermined time frame. This note is unsecured, which means that there is no section for security to be stated. This adds a considerable amount of risk to the lender in the transaction. To help prevent financial loss to the lender, the lender should only lend to family/friends and should screen all potential borrowers to ensure they have a strong credit history.

How to Write

Step 1 – On the first page of the template, enter the current date, the name and address of the borrower, the name and address of the lender, the full balance of the note, and the note’s interest rate.

Step 2 – Proceed to the first (1) section and select the payment method that you would like the borrower to follow for the duration of the agreement. Out of the three possible options, two of them utilize installments, which require the borrower to make either weekly or monthly payments to the lender.

Step 3 – For sections two (2) and three (3), enter the final due date that the entire balance will be due on. Also due on this date is any issued late fees and accrued interest. For the third section, enter the interest rate that will enter into effect if the borrower misses a payment by more than fifteen days or defaults on the balance.

Step 4 – Head to the sixth (6) section and enter both the time span needed to pass before a late fee can be issued and the dollar cost of a late fee itself.

Step 5 – In the seventh (7) section enter the number of days required to pass after a default has occurred before the lender can issue acceleration. Acceleration requires all outstanding debt to be paid immediately.

Step 6 – To put the agreement into full legal effect, head to the last page of the document and enter the current date (day, month, and year) and the printed and signed names of the lender, borrower, and witness.