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Promissory Note
$______(1)___ ____(2)_____, _____(3)_____
_______(4)________,
19_(5)_
FOR VALUE RECEIVED, the undersigned, promise to pay to the order of
___________(6)______________, (hereinafter referred to as "Payee"; Payee
together with any subsequent holder hereof or any interest herein being hereinafter
referred to as "Holder") at___________(7)______________, or at such other place
as the Holder may from time to time designate in writing, without grace, except as may be
otherwise expressly provided for herein, the principal sum _________(8)____________
($______), together with interest from the date hereof at a rate of (9)% per annum on the
unpaid principal balance from time to time outstanding in accordance with the following
provisions:
(a) Commencing ______(10)______ 19_(11)_, and on the _(12)_ day of each
and every month thereafter until _____(13)______, 19_(14)_, the undersigned shall pay to
Holder equal installments of ______(15)_____ ($_______), including principal and accrued
interest on the unpaid principal balance. The entire outstanding principal balance shall
be due and payable in full on or before _______(16)_______, 19_(17)_.
This Note and the instruments securing it are to be governed,
interpreted and construed by, through and under the laws of the State of ______(18)______.
This Note may be prepaid in whole or in part at any time without
penalty or premium. If this Note provides for installment payments of principal,
prepayment of principal payments shall be applied in the inverse order such installment
payments are due, applying first to the last principal installment due hereunder.
This Note is secured by a Mortgage of even date herewith executed by
the undersigned in favor of the Payee herein, which is a lien on certain collateral
security as described therein.
In the event that any payment of principal and/or interest is not made
within thirty (30) days that same is due, which event shall constitute an "Event of
Default" hereunder, or in the event of any default under the terms of the Mortgage
securing this Note, the undersigned shall pay, during the period of such default, interest
on the unpaid balance of the indebtedness evidenced by this Note at the highest rate
allowed by law.
The Holder shall have the optional right to declare the amount of the
total unpaid balance hereto to be due and forthwith payable in advance of the maturity
date of any sum due or installment, as fixed herein, upon the failure of the undersigned
to pay, when due and after thirty (30) days+ that same is due, any of the installments of
interest and/or principal, or upon the occurrence of any event of default or failure to
perform in accordance with any of the terms and conditions in the Mortgage securing this
Note or in any other security document executed and/or delivered in conjunction herewith.
Upon exercise of this option by the Holder, the entire unpaid principal shall bear
interest at the highest rate allowed by law. Forbearance to exercise this option with
respect to any failure or breach of the undersigned shall not constitute a waiver of the
rights to any continuing failure or breach or any subsequent failure or breach.
In no event shall the amount of interest due or payments in the nature
of interest payable hereunder exceed the maximum rate of interest allowed by applicable
law, as amended from time to time, and in the event any such payment is paid by the
undersigned or received by the Holder, then such excess sum shall be credited as a payment
of principal, unless the undersigned shall notify the Holder, in writing, that the
undersigned elects to have such excess sum returned to it forthwith.
Time is of the essence hereunder and, in case this Note is collected by
law or through an attorney-at-law, or under advice therefrom, the undersigned agrees to
pay all costs of collection including reasonable attorneys' fees. Reasonable attorneys'
fees are defined to include, but not be limited to, all fees incurred in all matters of
collection and enforcement, construction and interpretation, before, during and after
suit, trial, proceedings and appeals. Attorneys' fees shall also include hourly charges
for paralegals, law clerks and other staff members operating under the supervision of an
attorney.
The remedies of the Holder, as provided herein or in the Mortgage,
shall be cumulative and concurrent, and may be pursued singularly, successively or
together, at the sole discretion of the Holder, and may be exercised as often as occasion
therefor shall raise. No act of omission or commission of the Holder, including
specifically any failure to exercise any right, remedy or recourse, shall be deemed to be
a waiver or release of the same, such waiver or release to be affected only through a
written document executed by the Holder and then only to the extent specifically recited
therein. A waiver or release with reference to any one event shall not be construed as
continuing, as a bar to, or as a waiver or release of any subsequent right, remedy or
recourse as to a subsequent event.
Any notice to be given or to be served upon any party hereto, in
connection with this Note, must be in writing, and may be given by certified or registered
mail and shall be deemed to have been given and received on the third (3rd) business day
after a certified or registered letter containing such notice, properly address, with
postage prepaid, is deposited in the United States mail; and if given otherwise then by
certified or registered mail, it shall be deemed to have been given when delivered to and
received by the party to whom it is addressed. Such notices shall be given to the parties
hereto as set forth in the Mortgage.
All persons or corporations or other entities now or at any time
liable, whether primarily or secondarily, for the payment of the indebtedness hereby
evidenced, for themselves, their heirs, legal representatives, successors and assigns
respectively, hereby (a) expressly waive presentment, demand for payment, notice of
dishonor, protest, notice of non-payment or protest, and diligence in collection except as
may be otherwise expressly provided; (b) consent that the time of all payments or any part
thereof may be extended, rearranged, renewed or postponed by the Holder hereof and further
consent that the collateral security or any part thereof may be released, exchanged, added
to or substituted for by Holder hereof, without in anywise modifying, altering, releasing,
affecting or limiting their respective liability or the lien of any security instrument;
(c) agree that the Holder, in order to enforce payment of this Note, shall not be required
first to institute any suit or to exhaust any of its remedies against the undersigned or
any other person or party to become liable hereunder.
If more than one party shall execute this Note, the term
"undersigned" as used herein, shall mean all parties signing this Note and each
of them, who shall be jointly and severally obligated hereunder.
In this Note, whenever the context so requires, the neuter gender
includes the feminine and/or masculine, as the case may be, and the singular number
includes the plural.
All references herein to interest at the "maximum rate" shall
mean "maximum legal contract rate".
IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
in its name on the day and year first above written.
_________(19)__________________
Maker'+ Address:
_________(20)__________________
NOTICE
The information in this document is designed to provide an outline that
you can follow
when formulating business or personal plans. Due to the variances of many local, city,
county
and state laws, we recommend that you seek professional legal counseling before entering
into
any contract or agreement.
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