FLORIDA PROMISSORY NOTE
Dated: __________, 20____
FOR VALUE RECEIVED, the undersigned, ________________ (Lender) and _______________, (Borrower) whose address is ______________________________, promises to pay to ______________________ , whose address is ________________________, the principal sum of $__________ (principal sum), with annual interest thereon calculated in accordance with the terms and provisions provided below. All sums owing under this note are payable in lawful money of the United States of America.
This loan is an interest only loan with no amortization of the principal amount.
Interest accrued on this note shall be payable at the rate of One Percent (1%) per month, twelve Percent (12%) per annum, until such time as this note is paid in full. Interest shall accrue as simple interest and shall not compound.
All amounts required to be paid under their note shall be payable at lender's office located at the address noted above, or at such other place as lender, from time to time, may designate in writing.
If any required payment is not paid on or before the tenth day of the month in which it becomes due, Borrower shall pay, at Lender's option, a late or collection charge not exceeding 5% of the amount of such unpaid amount. Further, the amount of each payment that is not paid on or before the tenth day of the month in which it became due shall bear interest from the last business day until paid at the rate or rates charged from time to time on the principal owing under this rate.
3. Monthly Installments.
Monthly Installments of interest only shall be paid in equal successive monthly installments, each in the amount of $250.00, commencing on the first day of _______________ 20___, and continuing on the same day of each month thereafter.
4. Maturity Date/Repayment Period.
The entire principal balance of this note, together with all accrued and unpaid interest, shall be due and payable on demand by Lender. However, Lender shall give Borrower a period of ninety days (90) from the date of demand to pay the principal balance to Lender (Repayment Period).
Interest shall continue to accrue during the repayment period at the stated rate for this Promissory Note as set forth in Section 2. (Interest).
Interest shall be due and payable as a monthly installment in accordance with the terms as set forth in Section 3. (Monthly Installments) in this Promissory Note.
All other Provisions of this Promissory Note shall apply during the repayment period.
This note is secured by an Security Agreement of even date herewith, executed and delivered by Borrower which pledges certain assets of the Debtor as security herefore.
Borrower may prepay the whole or any portion of this note on any date, upon five days' notice to Lender. Any payments of the principal sum received by Lender under the terms of this note shall be applied in the following order of priority: (i) first, to any accrued interest due and unpaid as of the date of such payment; (ii) second, to the outstanding principal sum; and (iii) the balance, if any, to any accrued, but not yet due and payable interest.
7. Late Charge.
If any required payment, including the final payment due on the maturity date, is not paid within 10 days from and including the date upon which it was due (whether by acceleration or otherwise), then in each such event, all past due amounts shall be subject to a late penalty of five cents on every dollar owed (the late penalty). This late penalty shall be in addition to any other interest due as provided for in Paragraph 2 and in addition to all other rights and remedies provided herein or by law for the benefit of the holder upon a default; and the acceptance of any payment by the holder of the note shall not act to restrict the holder at all in exercising any other rights under the note or the law, to waive or release Borrower from any obligations contained herein or to extend the time for payments due under this note.
8. Default and Remedies.
If Borrower fails to pay principal and/or interest on the date on which it falls due, or to perform any of the agreements, conditions, covenants, provisions or stipulations contained in this note, in the mortgage or in the security documents, then Lender, at its option and without notice to Borrower, may declare immediately due and payable the entire unpaid balance of principal with interest from the date of such default at the rate of 18% per annum (or the highest rate permitted by law if this rate is less than 18% per annum) and all other sums due by Borrower hereunder or under the mortgage, anything herein or in the Mortgage to the contrary notwithstanding. Payment of this may be enforced and recovered in whole or in part at any time by one or more of the remedies provided to Lender in this note, in the mortgage or in the security documents. In such case Lender may also recover all costs in connection with suit, a reasonable attorney's fee for collection, and interest on any judgment obtained by Lender at the rate of 18% per annum (or the highest legal rate if this rate is less than 18% per annum).
The remedies of Lender and the warrants provided in this note, mortgage, or the security documents shall be cumulative and concurrent, and may be pursued singly, successively, or together at the sole discretion of Lender. They may be exercised as often as occasion shall occur, and failing to exercise one shall in no event be construed as a waiver or release of it.
9. Attorneys' Fees and Costs.
If Lender engages any attorney to enforce or construe any provision of this note or the mortgage, or as a consequence of any default whether or not any legal action is filed, Borrower shall immediately pay on demand all reasonable attorneys' fees and other Lender's costs, together with interest from the date of demand until paid at the highest rate of interest then applicable to the unpaid principal, as if such unpaid attorneys' fees and costs had been added to the principal.
(a) Borrower hereby waives and releases all benefit that might accrue to Borrower by virtue of any present or future laws of exemption with regard to real or personal property or any part of the proceeds arising from any sale of any such property, from attachment, levy, or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Borrower agrees that any real estate that may be levied upon under a judgment obtained by virtue hereof, on any writ of execution issued thereon, may be sold upon any such writ in whole or in part in any order desired by Lender.
(b) Borrower and all endorsers, sureties and guarantors, hereby jointly and severally waive presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice of protest of this note, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this note, and they agree that each shall have unconditional liability without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Lender. Borrower and all endorsers, sureties, and guarantors consent to any and all extensions of time, renewals, waivers or modifications that may be granted by Lender with respect to the payment or other provisions of this Note, and to the release of any collateral or any part thereof, with or without substitution, and agree that additional borrowers, endorsers, guarantors, or sureties may become parties hereto without notice to them or affecting their liability hereunder.
(c) Lender shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by Lender, and then only to the extent specifically set forth in writing. A waiver on one event shall not be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent event.
All notices required under or in connection with this Note shall be delivered or sent by certified or registered mail, return receipt requested, postage prepaid, to the addresses set forth in Paragraph 1 hereof, or to such other address as any party may designate from time to time by notice to the others in the manner set forth herein. All notices shall be deemed to have been given or made either at the time of delivery thereof to an officer or employee or on the third business day following the time of mailing in the aforesaid manner.
12. Costs and Expenses.
Borrower shall pay the cost of any revenue tax or other stamps now or hereafter required by law at any time to be affixed to this note.
13. No Partnership or Joint Venture.
Nothing contained in this note or elsewhere shall be construed as creating a partnership or joint venture between Lender and Borrower or between Lender and any other person, or cause the holder of the note to be responsible in any way for the debts or obligations of Borrower or any other person.
14. Interest Rate Limitation.
Notwithstanding anything contained herein to the contrary, the holder hereof shall never be entitled to collect or apply as interest on this obligation any amount in excess of the maximum rate of interest permitted to be charged by applicable law. If the holder of this note ever collects or applies as interest any such excess, the excess amount shall be applied to reduce the principal debt; and if the principal debt is paid in full, any remaining excess shall be paid to the Borrower forthwith. In determining whether or not the interest paid or payable in any specific case exceeds the highest lawful rate, the holder and the Borrower shall to the maximum extent permitted under applicable law (a) characterize any non principal payment as an expense, fee or premium rather than as interest; (b) exclude voluntary prepayments and the effects of these; and (c) spread the total amount of interest throughout the entire contemplated term of the obligation so that the interest rate is uniform throughout the term. Nothing in this paragraph shall be deemed to increase the total dollar amount of interest payable under this note over that provided for herein without regard to the provisions of Paragraph 14(c) above.
In the event this note is pledged or collaterally assigned by Lender at any time or from time to time before the maturity date, neither Borrower nor Lender shall permit any modification of this note without the consent of the pledgee/assignee.
16. Number and Gender.
In this note the singular shall include the plural and the masculine shall include the feminine and neuter gender, and vice versa, if the context so requires.
Headings at the beginning of each numbered paragraph of this note are intended solely for convenience of reference and are not to be construed as being a part of the note.
18. Time of Essence.
Time is of the essence with respect to every provision hereof.
19. Governing Law.
This note shall be construed and enforced in accordance with the laws of the State of Florida, except to the extent that federal laws preempt the laws of the State of Florida.
IN WITNESS WHEREOF, Borrower has executed this promissory note on the date set forth above.
Signed in the Presence of:
This document is a sample Florida Promissory Note and should not be used for any lending matter. This form is being provided for illustrative purposes only and should not be relied upon as legal advice. We recommend and urge you to consult with an experienced lawyer for professional advice as each case is unique and the law is constantly changing. All Rights Reserved.
Additional Representations, Warranties and Disclaimer.
UNLESS OTHERWISE MUTUALLY AGREED TO BY THE PARTIES IN WRITING, WE OFFER THIS DOCUMENT AS-IS AND WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND CONCERNING THE FORM, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF TITLE, MERCHANTIBILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR THE ABSENCE OF LATENT OR OTHER DEFECTS, ACCURACY, OR THE PRESENCE OF ABSENCE OF ERRORS, WHETHER OR NOT DISCOVERABLE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO SUCH EXCLUSION MAY NOT APPLY TO YOU.
Additional Limitation on Liability.
EXCEPT TO THE EXTENT REQUIRED BY APPLICABLE LAW, IN NO EVENT WILL WE BE LIABLE TO YOU ON ANY LEGAL THEORY FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES ARISING OUT OF THIS DOCUMENT OR THE USE OF THIS DOCUMENT, EVEN IF WE HAVE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.