The Alabama Promissory Note Template is used as a commitment between a lender and a borrower that the loaned money will be paid back with a defined interest rate. The free promissory note template may be secured or unsecured depending on the terms and conditions negotiated by the parties. A Secured Note will make the borrower liable to transfer ownership of the property described in the paper unless they transmit the payment, interest rate, and late fees on time. An Unsecured Note does not impose this liability.
Section 8-8-1 of the Alabama state law regulates the amount of usury rate. The legal interest rate normally equals 6% for one year, unless different conditions are provided in the paper for verbal agreements. If the contract is written and signed by both parties, the maximum interest rate cannot exceed 8%.
You may opt for the official form, where you need to submit the following:
To ensure the best result, you can use our form-building software and an alternative, more detailed Alabama Promissory Note template. Follow the steps below to complete it successfully.
Input the date you are signing the agreement and the amount of money the principal is about to receive in US dollars.
Indicate the borrower’s full name and mailing address and the same information about the lender. Establish the interest rate per annum you have agreed upon.
If the borrower pledges to transmit monetary funds every month, check the corresponding box. If the lender is supposed to receive the payments quarterly, select a related option. Indicate the sum you will get at a time (or the number of years given to the borrower for the debt compensation). The Maturity Date, or Due Date, should be entered as well.
Choose whether the Note is secured (along with the assets it is secured by) or unsecured.
Write down that the document is being created in Alabama and is regulated by its laws.
Two competent adults witnesses should append their signature, confirming that the information submitted is true and correct. Both parties have to provide their titles and full names.