A Nevada promissory note template is an official contract that is drafted between people to clarify the terms of lending money. The person who borrows the funds is referred to as the borrower or issuer. The individual who affords the required sum is recognized as the lender or payee. The signatories determine the contract’s conditions depending on the kind of document: loan sum, dates and amount of regular payments, the interest rates, and penalties for a late refund (if applicable).
There are two types of promissory note form in Nevada. The alternatives have their benefits and flaws, so one should select the preferable variant.
Unsecured Promissory Note
Unsecured promissory agreements are typical between people who find each other dependable and can afford to lend (to borrow) a generous amount of money without setting guarantee assets. Usually, family members and friends use this type of contract.
Unsecured promissory notes do not demand specific attachments and outline the essential points of the contract:
The parties can notarize the document for additional safety. If the issuer fails on reimbursement or defaults, the lender should turn to the court to regain compensation.
Secured Promissory Note
Unlike the unsecured type of agreement, a secured promissory note registers guarantees. If the borrower fails to return the funds within the designated period in full, the payee has a legal right to claim compensation immediately.
Secured promissory notes differ in structure compared to the unsecured contracts and usually contain the following sections:
Nevada laws do not demand a compulsory notarial acknowledgment of secured promissory agreements. However, you are empowered to obtain notarization to grant the paper more authority. Appoint a notary representative and append both parties’ signatures in their witness. The notary will verify the signatories’ identities and affix the state seal and their signature.
The interest rate is balanced by § 99.040 and § 99.050 of the Nevada Revised Statutes. The laws state that the interest rate should not exceed the highest rate at the state’s largest bank if there are no specific written settlements in the agreement. The rates are modified every January and July.
The signatories may set their agreed interest rate that will not change throughout the designated period. The parties have to specify the percentage in writing and include these data in the contract.
Once you have orally discussed the details, create a respected contract. Use our advanced software to ensure an effortless process. Below are guidelines clarifying what information you should include in the form.
The issuer should enter the calendar date on which the Nevada promissory note template is created. Then specify the amount of the loan in US dollars.
Write down the borrower’s legal name and address. The next step is to introduce the lender’s name and address.
Insert the amount of interest percentage per annum.
The following three sections outline the dates and amounts of regular payments. You should also include the maturity date.
Specify if the promissory note is secured or unsecured and check the appropriate box. Note that a secured promissory contract should include the collateral section. Enter the property and assets that guarantee the performance of duties.
Before signing the note, insert the jurisdiction state (Nevada) and place the parties’ printed names. Once both signatories have read the paperwork, they can sign it. Under Nevada laws, the promissory note doesn’t require a mandatory notarization.
If applicable, the signatories outline the amortization schedule in Exhibit A section. The paper should be attached to the promissory note.