A Promissory Note
A promissory note is a written promise to pay back a certain sum of money at specified terms at an agreed upon time Sometimes it simply called the note. Informally, it could be called an I.O.U. The maker is the person borrowing the money, or making the note. It is a personal obligation of the borrower and a complete contract in itself, between the borrower and lender. The holder is loaning the money or the one holding the note.
According o the Uniform Commercial Code, to be valid or enforceable, a promissory not must meet certain requirements:
A Promissory Note:
· An unconditional written promise to pay a certain sum of money
· Made by one person to another, both able to legally enter into a contract
· Signed by the maker, or borrower
· Payable on demand or at definite time
· Paid to bearer or to the order
· Voluntarily delivered by the borrower and accepted by the lender
California home loan documents contain a promissory note. It clearly defines the rate and terms of the loan, when it’s due and if there are an adjustments during the life of the home loan. IT is important that all homeowners understand this and read their home loan documents carefully . Failure to read your loan documents will put you at great risk. If you don’t understand something, be sure to ask your trusted loan advisor.
Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538
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