The Maryland promissory note is a document you use when borrowing or lending money in this state. The promissory note template also is widely utilized in other American states. It is a repayment guarantee from the borrower to the lender.
If you lend someone money, you expect to get the money back at some point. With a promissory note, you may state the exact day when you should receive the funds, and the borrower promises to refund. When you sign this note, it becomes legal proof, and you can take it to court if the borrower disappears or refuses to pay for some reason.
Each promissory note completed in the United States (and in Maryland) should disclose specific info to be effective. If you create such a paper, remember to indicate:
Sometimes the lent amount is huge, and the lender needs an additional guarantee of repayment. For such a case, a secured promissory note comes in handy. In the paper, the debtor offers something instead of cash if they cannot cover the debt. Suggested items should be commensurate with the lent amount.
Another type of promissory note is called “unsecured.” This means that nothing is offered to substitute the money. Typically, parties sign these notes when the creditor is sure of the debtor’s ability to refund.
You should know that the laws regarding usury are not unified, and each American state proposes its own provisions tied to the theme.
Regulations covering usury in Maryland are included in Article 12 (also referred to as “Commercial Law”) of the Maryland Statutes.
Section 12-102 of the Maryland Statutes says that the legal rate of interest in the state is 6%. In other cases, it may increase to 8%, as written in Section 12-103.
It is typical to face difficulties when creating various legal forms. You can use our instructions to complete the Maryland promissory note template quickly and correctly. Keep reading to understand how to write the note step by step.
Get the Proper Template
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Promissory notes are kept by both the creditor and the debtor. So, you have to make at least two copies.
The Date the Promissory Note
You should begin by adding the current date in the relevant blank space.
Reveal How Much Has Been Borrowed
Below the date, write the exact sum that the debtor has obtained. It has to be stated in US dollars.
Name the Debtor
Write the debtor’s full name in the first line of the form. Then, indicate their full address.
Do the Same for the Lender
Then, add the lender’s name and full address.
Indicate the Interest Rate
Insert the interest rate you and the other party have decided to apply to the debt.
Create a Schedule
You have to discuss when the borrower will cover the parts of their debt. When the creditor and the borrower have accepted the conditions, choose the appropriate options and write the dates and the amounts to pay.
Specify the Termination Date
The lender often wants to get the money fully in a certain period. So, the agreement presumes that the exact date will be indicated. This date is also called the “maturity date.” Write it in the appropriate line.
Choose the Promissory Note Type
We remind you that the promissory note can be either secured or unsecured. You should choose the type and add the items that can be given instead of cash. In the template, these items are referred to as the “Collateral.”
Sign the Note
To finish the process and make the document valid, the creditor and the debtor must sign it. Ask a notary to sign if you like.