A promissory note is a written statement by the borrower stating that he in fact borrowed a specific amount of money from the creditor and thus he is legally obligated to return the debt when the creditor demands it whether he can afford it or not. This is type of a loan agreement but less formal and only used for personal reasons i.e. loan between friends, family members, and relatives. Promissory Notes can easily help you to write down some legal documents without much expertise required or some legal firm to hire.
Introduction to the Demand Notice to Pay Promissory Note:
When a promissory note is signed by the borrower, there is a sworn statement in the note that the borrower is legally obligated and will return the borrowed money when the creditor demands it. This is where the formal demand notice to pay a promissory note comes in handy. Creditors can use this demand notice to formally inform the debtor that it’s time to pay back the debt or to make a formal demand for the payback of borrowed money. This is a simple document that you can prepare by yourself but it has some legal value but it’s not as valuable as a formal loan agreement.
Key elements to include in the Demand Notice to Pay Promissory Note:
- Name of the creditor with complete address
- Name of the debtor with complete address
- Date when the demand notice is being sent to the debtor
- Reference number of the promissory note
- Details and specifications of the promissory note
- Amount of money or payment that the debtor owes to the creditor
- A proper schedule of each payment with the date (if applicable in case of installments)
- Formal demand for full payment (if the deadline for installments has passed)
- Duration or time period in which the debtor is required to make the payment
- Details of further legal actions that will be taken by the creditor
- Informing the debtor that he will be responsible to pay for legal fees and charges
- Signature of the creditor (sender of the demand notice) with the date
Here is a preview of a Free Sample Demand Notice to Pay Promissory Note created as fillable PDF form,
Here is the download link for this Demand Notice to Pay Promissory Note,
