The Virginia promissory note template is a legal document completed and signed by people when borrowing money. With the promissory note template, the debtor assures the creditor that they will return the money on a specific date. If a debtor cannot or refuses to repay the money, the creditor can go to court and present the note to force the debtor to refund.
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You need to take certain things into account when completing the note. In particular, you should add the following items to the document:
Promissory notes can be either secured or unsecured. With a secured note, creditors protect themselves because debtors write the items to act as collateral in case they cannot repay the money.
Unsecured notes do not propose any of such items. This type fits when you lend money to someone you trustfully.
Each American state has its own legislation and regulates usury differently. In Virginia, the subject is reflected in Title 6.2 of the Code of Virginia.
The legal rate of interest in Virginia is set at 6% per year, as prescribed in Section 6.2-301. Other cases and limitations are given in Section 6.2-303.
To avoid wasting time when creating the note, our step-by-step guide will assist you.
Any completion of such forms starts with getting suitable templates. You can use our form-building software to quicken the process. You should create two copies of the note: one for the lender and the other for the borrower.
You have to write the date when the document is signed on the left-hand side and the city on the right.
In the first line of the note’s text, you will see blank space for the borrowed amount, also called “principal amount.” Insert the sum in US dollars.
Then, you have to name the lender. Write their full name in the relevant line.
Parties of such deals should agree on the interest rate per year. After the discussion is finished, write the rate in Section 2, called “Interest,” in the template.
In promissory notes, creditors and debtors normally include a detailed schedule of payments. Such schedules reveal how much the debtor should pay and when (for example, on a certain day of every month). Also, defining the due date is a must. In such agreements, this date is called the “maturity date.”
If the debtor fails to refund as stated in the schedule, the creditor may apply penalties. They should be described in Section 6 of the form.
You have to read all the statements included in the promissory note, understand, and acknowledge them.
Only the borrower should sign the form. In Virginia, Notarization is not required.