When a person borrows money from another individual or entity, there is a need to complete several documents confirming borrowing. A California promissory note template is used when the deal is sealed in the mentioned state under specific conditions.
This document usually describes:
There are two types of California promissory notes: secured and unsecured. The first type is used if a borrower suggests substitution for the money (when they cannot cover the debt). The second type is common when the borrower is a friend or a family member whom the lender trusts.
California Constitution incorporates the provisions tied to the topic of usury (see Article XV).
You may find the information about the rate of interest there. The rate varies from 5% to 10% in California, depending on why the money is borrowed and other factors.
The completion of legal forms in the United States can be complicated. To fill out the promissory note template correctly, follow our guidelines below.
Download the Template
First, you should get the template that will suit the case. Use our form-building software to generate the file.
Write the Date
Below the heading of the form, add the date when you are signing it.
Name the Involved Parties and Indicate the Borrowed Sum
The form begins with information about the parties that sign it. The one who gives the money is also referred to as a lender. The one who receives the money and is obliged to pay it back is called a borrower.
In the relevant blank lines, write the names and the addresses of both the borrower and the lender. Also, write the amount of lent money in US dollars.
Define the Interest Rate
State the interest rate per annum for this debt in both words and numbers.
After inserting the interest rate, parties should agree on some statements, including when the payment is due (or the maturity date) and the sum to pay. Choose the items that suit your case and express the conditions that both parties have discussed and accepted.
Below the added details, you will see several statements regulating the relations between the lender and the borrower. Read them carefully and take them into account to avoid any kind of problems tied to the loan.
Sign the Form
Both the lender and the borrower should sign the promissory note to show their acknowledgment of the document.