An Oregon promissory note is a written legal form that confirms the validity of a loan offered to the borrower by the lender. In other words, it is a guarantee of payment made official and provided by the borrower. Promissory notes define the amount of due money, conditions, and terms of the deal, and, in some cases, the interest.
Such a type of promissory note template is represented by two main types: secured and unsecured. The first one is based upon the condition of transferring ownership of a property or an asset called “security” to the creditor in case the money is not paid back. The second type is less reliable, though built on mutual trust: it implies that no asset should be paid to the lender in case of non-payment, as no property was stated as a pledge in the agreement. The second type applies more to your friends and people you fully trust.
The usury laws in Oregon are regulated by § 82.010(1), (3). We advise you to get acquainted with further details to increase your awareness before filling out the agreement.
Before the agreement is signed, both parties should come to terms with the basic repayment conditions, late fee terms, the borrowed sum, the pledge, and interest, if applicable. In Oregon, the legal interest rate is 9%. However, other conditions may apply to business and agricultural loans.
The amount of interest depends on the borrowed sum, but the maximum amount of interest chargeable on a credit of $50,000 or less is 12% per year. In case of a substantial loan sum, a house, a vehicle, or other valuable properties may serve as a security or pledge of the deal.
In a particular case, when the debtor is financially incapable of paying back the money, one should indicate in the agreement a person called co-signer to pay back the stated sum.
Once the agreement is in full legal force, the borrower becomes the debtor and is accountable for providing installment payments to the creditor in prompt and accurate terms specified in the agreement.
Completing the form may not be a time-consuming procedure if you apply our in-built template and consequently follow the steps.
Note that the amount of interest is generally counted per year.
The conditions may vary, though they usually consist of three main options. It can be a single payment—the total amount borrowed plus interest at a due date.
The second option implies regular installments (usually monthly or weekly) specified in the agreement.
The third one consists of only the interest rate paid by the debtor regularly.
The property’s value should generally be comparable with the amount borrowed. This asset is given to the creditor after the debtor finally fails to solve a potential default situation.
In some cases, the agreement may presuppose the third person, who is accountable for the payment and will ensure it, or acts as a witness if such person signs the contract.
Make sure there are no blank spaces left.
In this step, the borrower agrees to pay the principal amount to the lender, represented by a business entity, an organization, or a particular person. The signature is the final confirmation of the validity of the agreement.