In the United States, including Texas, sometimes lending (or borrowing) of money leads to the completion of documents that prove the deal. The Texas promissory note template is used in such a case.
Usually, the promissory note template is created and signed by two parties: a lender (who gives the money) and a borrower (who receives the money and needs to give it back). Like other legal forms, a promissory note has several details that parties need to include. Among them are:
Typically, promissory notes in Texas are either secured or unsecured. There is one key difference: with a secured note, the borrower proposes some property to cover the debt if they cannot return the money.
The unsecured note is less safe because the lender cannot receive anything in place of the money. Typically, people use this type of template when they lend money to their reliable relatives or friends.
The laws and provisions covering usury in Texas are included in the Finance Code (Texas Statutes). Title 4 regulates the interest, loans, and financed transactions in Texas.
According to Chapter 302 (Subtitle A of Title 4), the interest rate should not exceed 10% (however, there might be exceptions by law).
If you need to complete the Texas promissory note template, read our instructions explaining how to create this document step by step.
Download the Template of the Texas Promissory Note
First of all, download the correct template of the Texas promissory note. You may use our form-building software to get the file quickly.
Add the Names of the Parties
The promissory note form in Texas begins with the names of the lender and the borrower. Write them here.
Write the Borrowed Amount with the Interest Rate
Then, write how much money was borrowed and state the interest rate per anum applicable to the situation.
State the Term of Payment
Indicate the period in which the borrower has to cover the debt: for example, “two months,” “three years,” and so on.
Complete the “Payable on Demand” Section
Insert the date when the sum might become payable on demand. Add the terms in which the borrower has to cover the debt after receiving the “payable on demand” notice from the lender.
Read the Statements
The note includes statements revealing the conditions of the lending (borrowing) deal. Both parties should read and acknowledge them.
Sign the Texas Promissory Note
After everything is clear and all the required details are incorporated, both parties should sign the form. The date should also be added. Besides, witnesses of both lenders and borrowers usually sign the document in Texas.