PROMISSORY NOTE

Principal amount: ${{principal_amount}}
Date: {{note_date}}
Place: {{note_place}}

Borrower (the "Maker"):
Name: {{borrower_name}}
Address: {{borrower_address}}
Phone: {{borrower_phone}}
Email: {{borrower_email}}

Lender (the "Holder"):
Name: {{lender_name}}
Address: {{lender_address}}

1. Promise to pay

1.1. For value received, the Maker promises to pay to the order of the Holder the principal sum of ${{principal_amount}}, together with interest as set out below.
1.2. The funds were advanced to the Maker on {{funding_date}} by {{funding_method}}.
1.3. Purpose of the loan: {{loan_purpose}}
1.4. All payments are made in U.S. dollars to the Holder at the address above, or as the Holder directs in writing.
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2. Interest

2.1. Interest accrues on the unpaid principal at the rate of {{interest_rate}}% per year, calculated on a {{interest_basis}} basis, from the funding date until the note is paid in full.
2.2. Every state sets a maximum lawful interest rate, and a rate above it can cost the lender the interest and sometimes more. Check the usury limit in {{governing_state}} before agreeing to the rate above.
2.3. If the note is in default, interest accrues at {{default_interest_rate}}% per year on the unpaid balance, to the extent permitted by law.
2.4. If the rate in section 2.1 is below the applicable federal rate the IRS publishes each month, federal tax law may treat the Holder as receiving the interest not charged, unless an exception applies, such as the one for gift loans between individuals that total $10,000 or less (26 U.S.C. 7872).

3. Repayment

3.1. Repayment terms: {{repayment_terms}}
3.2. The full outstanding balance is due on {{maturity_date}} (the "Maturity Date").
3.3. Payment schedule: {{payment_schedule}}
3.4. Each payment is applied first to accrued interest, then to principal.
3.5. The Maker may prepay all or part of the note at any time without penalty.
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4. Default and remedies

4.1. The note is in default if a payment is more than {{grace_period_days}} days late, if the Maker becomes insolvent, or if the Maker breaches any other term of this note.
4.2. On default the Holder may declare the entire unpaid balance immediately due and payable without further notice.
4.3. The Maker shall pay the Holder's reasonable costs of collection, including attorney's fees, to the extent allowed by the law of {{governing_state}}.
4.4. A late charge of ${{late_charge}} applies to any payment more than {{grace_period_days}} days overdue.
4.5. The Holder's failure to enforce a right on one occasion does not waive it later.

5. Security and general terms

5.1. Security for this note: {{security_description}}
5.2. The Maker waives presentment, demand for payment and notice of dishonor.
5.3. This note is governed by the law of {{governing_state}}.
5.4. If any provision is held unenforceable, the rest stays in force.
5.5. This note binds the Maker's heirs and successors and benefits the Holder's successors and assigns.
5.6. Some states require a promissory note to be notarized or witnessed for certain purposes. This template is not legal advice.

MAKER (Borrower):
Name: {{borrower_name}}
Signature: {{borrower_signature}}
Date: {{note_date}}

HOLDER (Lender):
Name: {{lender_name}}
Signature: {{lender_signature}}
Date: {{note_date}}

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