When you lend money to someone, you expect them to return it someday. The Illinois promissory note, signed by the borrower, may serve as a warranty. If something goes wrong and the borrower breaks their promise to give the money back on time, this note acts as proof that you may use to initiate a case in trial.
It is essential to incorporate several details in the form to make it valid, like:
If you want to complete and sign the promissory note in Illinois, you need to decide which type of promissory note template you prefer. There are secured and unsecured promissory notes. They differ in that the secured note guarantees the refund by valuable items that the borrower can provide (if they fail to refund with money).
The unsecured note does not provide such guarantees. It is typical to sign unsecured notes when borrowers and lenders know each other well or the lent sum is not significant. However, there are no limits, and you may choose any template you like.
Laws and norms dedicated to the topic of usury, business transactions, and loans are included in Chapter 815 of the Illinois Compiled Statutes (or ILCS).
According to Section 815 ILCS 205/4, the interest rate should not exceed 9%.
To avoid getting stuck with completing the Illinois promissory note template, use our instructions below.
To begin completing any legal document in the United States, you have to download the proper template. Our form-building software will generate the relevant Illinois promissory note template for you at any time. Get two copies so both the borrower and lender can sign and keep one.
The first blank line is for dating the note. Insert the date when you are signing the document.
Below the date, add the principal amount. How much did the borrower get?
The first paragraph in the note reveals the borrower’s and lender’s details. Initially, name the borrower and indicate their address. Then, do the same for the lender.
Parties typically discuss the interest rate and approve it. Write the decided interest rate in a suitable blank line in the first part’s end.
Then, you should choose the options from the list. These options will define the schedule of payments. Fill out the lines you have selected.
The maturity date, or the due date, should be disclosed in the promissory note. Write it in the relevant line.
As we have already explained, promissory notes can be either secured or unsecured. Choose the type. If you opt for a secured note, insert information about the items guaranteeing the refund (or the “Collateral”).
Both parties have to append their signatures and names on the promissory note.