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In Minnesota, a Promissory Note serves as a crucial financial document that outlines a borrower's promise to repay a loan under specified terms. This form typically includes key details such as the principal amount borrowed, the interest rate, and the repayment schedule. It may also specify whether the loan is secured or unsecured, which can significantly affect the lender's rights in case of default. Additionally, the note often contains provisions regarding late fees, prepayment penalties, and the consequences of missed payments. Understanding the structure and components of the Minnesota Promissory Note is essential for both lenders and borrowers, as it helps ensure clarity and enforceability in financial transactions. By adhering to the state's legal requirements, parties can protect their interests and foster a smoother lending process.
Form Example
Minnesota Promissory Note Template
This promissory note is governed by the laws of the State of Minnesota. It is a legally binding agreement between the borrower and the lender for the loan of money under the terms specified below.
Date: ________________________
Borrower's Information
- Name: ________________________
- Address: ________________________
- City: ________________________
- State: Minnesota
- Zip Code: ________________________
Lender's Information
- Name: ________________________
- Address: ________________________
- City: ________________________
- State: ________________________
- Zip Code: ________________________
Principal Loan Amount: $________________________
Interest Rate (Annual): ________________________%
Repayment will be made as follows:
- Lump sum payment due on ________________________ (due date), including both principal and accrued interest.
- OR
- Installment payments as follows: $_______________________ per ________________________ (week/month/year), beginning on ________________________ until fully paid.
Additional terms:
______________________________________________________________
______________________________________________________________
In case of late payment, a late fee of $________________________ will be charged.
If the borrower fails to make payments, the entire balance may be declared due and payable upon notice to the borrower.
This note is subject to the exclusive laws and jurisdiction of Minnesota. By signing below, the borrower and the lender agree to the terms and conditions outlined in this note.
Borrower's Signature: ________________________
Date: ________________________
Lender's Signature: ________________________
Date: ________________________
File Specs
| Fact Name | Description |
|---|---|
| Definition | A Minnesota Promissory Note is a written promise to pay a specific amount of money to a designated person or entity. |
| Governing Law | The Minnesota Uniform Commercial Code (UCC) governs promissory notes in Minnesota. |
| Parties Involved | The note involves a borrower (maker) and a lender (payee). |
| Interest Rate | The interest rate can be fixed or variable, as agreed upon by the parties. |
| Payment Terms | Payment terms, including due dates and installment amounts, must be clearly stated. |
| Signature Requirement | The maker's signature is required for the note to be valid. |
| Default Conditions | Conditions under which the borrower defaults should be outlined in the note. |
| Enforcement | If the borrower defaults, the lender may take legal action to enforce the note. |
| Transferability | The note can be transferred to another party unless stated otherwise. |
| Notarization | While notarization is not required, it can provide additional legal protection. |
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