📝 Promissory Note Generator

A promissory note is a legally binding written promise to repay a debt. It sets out the principal amount, interest rate, payment schedule, and what happens in the event of default. Governed by UCC §3-104.

Use a promissory note whenever one party loans money to another — personal loans between friends or family, business financing, real estate seller carry-back loans, or any structured debt arrangement.

• Interest rates must stay below your state's usury limit — check the legal maximum before setting your rate.
• Specify exact payment dates and amounts to avoid disputes; vague payment terms are hard to enforce.
• Include an acceleration clause so the full balance becomes due immediately if the borrower defaults.
• For secured notes, properly describe the collateral and consider filing a UCC-1 financing statement.
• Both parties should keep signed originals — the lender needs the original to enforce in court.