Vermont Unsecured Promissory Note Template

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The Vermont unsecured promissory note binds a lender and a borrower into a legal promise that requires the borrower of a monetary balance to reimburse a lender in a predetermined time frame. This note does not include security, leaving the lender at risk for losing the loaned balance. Lenders should screen potential lenders to ensure they have a strong credit history (this hints that they will be able to make payments on time).

How to Write

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

Step 2 – Once the above information has been entered into the template, head to section one (1) and select the payment method that will be in effect during the agreement. The options consist of the following:

  • No Installments – Borrower makes a single payment to the lender covering the entire balance plus interest.
  • Installments – Borrower makes multiple payments to the lender either weekly or monthly.
  • Interest Only Payments – Borrower makes weekly or monthly payments to the lender that consist of only interest.

Step 3 – In the second (2) section, enter the final due date that the entire balance needs to be paid by.

Step 4 – Next, in the third (3) 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 5 – Head to the sixth (6) section and enter the time span required to pass before a late fee can be issued and enter the cost of a single late fee.

Step 6 – In the seventh (7) section, enter the number of days required to pass (after a default has occurred) before the lender can issue acceleration.

Step 7 – Head to the last page of the template and enter the following information into the designated boxes:

  • Current Date
  • Lender’s Printed and Signed Name
  • Borrower’s Printed and Signed Name
  • Printed and Signed Names of the Witness

Once the signatures have been recorded, the template will go into full effect.