The Virginia promissory note templates are signed promises requiring the borrower of a monetary balance to reimburse a lender in a timely and structured fashion. The notes include many sections covering areas that include late fees, payment types, interest rates, and many other important areas.
Usury Rate – Legal rate of interest is 6%. With a contract in place, the maximum interest rate is 12%.
Laws – § 6.2-301 and § 6.2-303
Types
Secured Promissory Note – Includes security, which provides the lender with a layer of protection if the borrower defaults on the balance. In the template, the borrower will be required to enter an item such as a home, vehicle, or boat that will help cover the remaining unpaid balance if the borrower cannot recover from the default.
Unsecured Promissory Note – Does not include security, leaving the lender at an increased risk for losing the loaned balance. Lender’s should take their time in selecting a borrower by only lending to family, friends, and/or those with strong credit.
Usury Rate
The legal rate of interest in Virginia if not otherwise written in an agreement is 6% and the maximum rate is 12%. VA ST § 6.2-303
(Video) What is a Virginia Promissory Note?
How to Write –
Step 1 – Download the Virginia note document –
- The start date of the document in dd/m/yy format
- Borrower’s name
- Mailing address
- AND
- Lender’s name
- Mailing address
- AND
- Enter the sum of the principal on the note agreement
- Specify the unpaid amount of the annual percentage rate
Step 2 – Payments –
- Submit the balance of the note to be satisfied by the due date
- Include the amount of accrued interest and late fees
Installments –
Payment method – Enter the final date for the note to be paid – in dd/m/yy format
- The full amount to be paid in full when the note is due
- The amount of the principal
- Choose the best payment frequency and check the box
- Submit the amount that shall be required of the borrower for late fees
Step 3 – Security-
- Check “Secured”or “Unsecured”
- If the requirement is that the note shall be a“secured,” agreement, provide a description of the property
Step 4 – Titled Sections and Subsections –
- Interest due in the Event of Default
- Allocation of Payments
- Prepayment
- Acceleration (and 6A.)
- Attorney’s Fees and Costs
- Waiver of Presentments
- Non-Waiver
- Severability
- Integration
- Conflicting Terms
- Notice
- Co-Signer – Name of the co-signer
- Execution
- Governing Law – (Virginia State Laws)
Step 5 – Signatures – Submit signatures before a witness, as follows:
- Lender’s signature
- Date of signature – in mm/dd/yyyy format
- Printed name
- AND
- Borrower’s signature
- Date of signature – mm/dd/yyyy
- Printed name
- AND
- Co-signer signature
- Date signature – in dd/mm/yyyy format
- Printed name
- AND
- Witness’ signature
- Date of witness’ signature in mm/dd/yyyy format
- Printed name
