Vermont Secured Promissory Note Template

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The Vermont secured promissory note is a signed legal promise from a borrower stating he or she will reimburse a loaned money balance in a predetermined time frame to the lender. The template includes sections declaring penalties for missing payments to ensure the borrower understands the importance of following the payment method selected in the note.

How to Write

Before heading to the first step, enter the following information at the top of the template:

  • Current Date
  • Borrower’s Name and Address
  • Lender’s Name and Address
  • Balance of Note
  • Note’s Interest Rate

Step 1 – Select the payment method that the borrower will be required to follow during the agreement. Two of the three options use installments, which require the borrower to make either weekly or monthly payments to the lender until the balance is paid for. If one of these options were selected, put a checkmark next to either weekly or monthly payments and enter the date of the first payment at the bottom of the section.

Step 2 – In the second (2) and third (3) sections, begin by entering the date that the entire balance must be paid by. Then, enter the interest rate that will go into effect if a default occurs during the agreement. Ensure a legal interest rate has been chosen (in the state of Vermont) by checking [9 V.S.A. § 41a].

Step 3 – Head to the sixth (6) section and enter the number of days a lender needs to wait (after a payment has been left unpaid) before he or she can issue a late fee. Next, enter the cost of a single late fee.

Step 4 – In section eight (8), enter the time frame that needs to pass after a default has occurred before the lender can issue an acceleration. An acceleration requires the outstanding balance, accrued interest, and any issued late fees to be paid immediately by the borrower.

Step 5 – Proceed to the seventeenth (17) section and input the item that will serve as security for the agreement. Items used as security typically consist of homes, vehicles, or boats (although any item can be used as long as it has similar value as to the amount of the note)

Step 6 – Finally, enter the current date followed by the printed and signed names of the borrower, lender, and the witness. Once all pertinent names have been recorded in their designated spots, the note will go into full effect and the borrower will be liable for making timely payments to the lender.