In Washington, when two parties (the debtor and the loaner) exchange money with each other, they need to complete specific legal papers to make their agreement valid. The Washington Promissory Note template is a legal document, without which Washington state law won’t recognize relations between the two parties as legal. But when both sides of the agreement sign it, it becomes legally enforceable for each of them.
In the promissory note template, both the loaner and the debtor register details of their agreement. They create terms and conditions that suit their interests.
Promissory relations between a loaner and a debtor are regulated by:
According to these official legal documents, the main condition that makes any Washington promissory relations legitimate is its established interest rate.
The maximum interest rate possible in Washington for regulating promissory relations is 12% or 4% point above the average bill rate for 26-week treasury bills. It means the interest rate in Washington is considered legitimate while it doesn’t exceed the Washington state’s established rate of interest.
Give out Basic Information
Write down the names of both the loaner and the debtor, their addresses, the interest rate, the amount borrowed, and the date.
Choose the Payment Method
Choose the method of payment among the following options:
State the date when the debtor has to pay the full amount borrowed.
Establish Delay Penalties and Conditions of the Acceleration
Enter conditions on which the debtor pays late fees to the loaner and mention circumstances in which the loaner can release the promissory note if the debtor pays before the due date.
Complete the Signature Area
The last section of the promissory note demands the loaner’s, debtor’s, and witnesses’ names and signatures, and the current date.