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The Unsecured Promissory Note Template contains a sample unsecured promissory note that can be customized to document a loan to you from a family member, friend, or other private party.
The form is designed to help prove that you have established a formal debtor/creditor relationship and that the exchange of money is a loan, not a gift. Executing a promissory note and adhering to its terms will help reduce the risks from gift tax issues, conflicts of interest and mismanagement claims, and personal misunderstandings between insiders and entrepreneurs.
Keep in mind that this form is a starting point, not a finished product. You'll want to customize it to make sure that the agreement reflects the understanding between your business and the lender.
The file contains a two-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
The concise sample promissory note covers:
As with all contracts and legal documents, it's a good idea to consult a local lawyer or the laws of your state regarding limitations or requirements affecting promissory notes (most notably the default and confession of judgment options).
Toolkit is providing these tools free of charge. Some of these forms contain technical language and create significant legal obligations. Do not use any form without first having an attorney review the form and determine that it is suitable for the purpose for which you intend it.