Promissory Note - Instalment (Australia)

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This Promissory Note - Instalment is designed for use in Australia. This form is available for immediate download.

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This Instalment Promissory Note documents the agreement of a borrower to repay a debt to a lender at a specified rate of interest and within a specific timeframe. This note establishes the sum and terms of the loan, the rate of interest, the timetable for repayment, and the rights and duties of the lender and borrower. This promissory note also contains a provision which states the borrower can repay the loan at any time without incurring a prepayment penalty. Having a written Instalment Promissory Note will prove invaluable if the borrower defaults or in the event of litigation.

Among others, this Promissory Note contains the following provisions:
  • Amount and Date:This provision sets out the specific amount of money borrowed and the date the note was signed;
  • Parties: This provision sets out the names and addresses of the borrower and the lender;
  • Interest Rate and Payment Provisions: This provision sets out the interest rate and the date payments are due;
  • Default: This provisions contains the penalties in the event of default.

Protect Yourself and your Rights by using our professionally prepared up-to-date forms.

This lawyer-prepared packet includes:
  1. General Information
  2. Instructions and Checklist
  3. Instalment Promissory Note for use in Australia
Law Compliance: This form complies with the state and territory laws of Australia
Number of Pages8
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#34908
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.








Promissory Note - Instalment
 (Australia)






This Packet Includes:
1.   Instructions and Checklist
2.   General Information
3.   Step-by-Step Instructions
4.   Instalment Promissory Note





Instructions and Checklist
Instalment Promissory Note

q   The Borrower must sign and date the Instalment Promissory Note

q   Signature does normally not need to be witnessed.

q   The Lender should keep the original Promissory Note containing the original signature of the Borrower. There should only be one original Promissory Note with the original signature.

q   The Borrower should keep a copy of the Instalment Promissory Note.

q   When the Borrowers obligation under the Promissory Note is satisfied (i.e. the Note is paid off), the Lender should write “Cancelled”, “Satisfied in Full” or “Paid in Full” on the front face of the original Promissory Note and should then sign and date it. The original Promissory Note should then be given back to the Borrower.

q   Laws vary from time to time and from state to state. It may be a good idea to have a lawyer review the completed Promissory Note before the Borrower signs it.

q   These forms are not intended and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used without consulting with a lawyer first.

q   The purchase and use of these forms, is subject to the Disclaimers and Terms of Use found at findlegalforms.com






General Information
Instalment Promissory Note

A Promissory Note creates an obligation for a Borrower to repay a loan back to a Lender together with a certain amount of interest.

Whenever a person lends money to another person, it is generally a good idea to have some document memorialising the transaction. The document should identify the parties; indicate the amount borrowed, the time for repayment, the rate of interest, conditions of default and any other necessary terms. Promissory Notes are legal instruments much like an “IOU.” The terms are usually mutually agreed upon by both parties, and memorialised in writing.  If the Borrower refuses to pay the loan back, the Lender should have no problem taking their claim to court and enforcing the note.

Secured vs. Unsecured

In a secured note, there is a provision in the document that will state that the Borrower has pledged an item of property for collateral.  Should the Borrower file for bankruptcy for instance, the secured note will have priority over other creditor claims.  In an unsecured note, there is no collateral securing the note, and the Lender has no priority over other creditors if the Borrower defaults.

Interest Rates

All Promissory Notes should set forth the amount of the loan and the applicable interest rate.  Interest rates can be fixed or variable. A variable interest rate moves with the market interest rate, while a fixed rate is set and does not change throughout the life of the note.

Repayment and Default

There are different methods of repayment for a Promissory Note.  One of the more common methods is by instalment payments with interest. These are known also known as amortised payments. With this type of payment, a portion of the payment is applied to the principal and the rest applied toward the interest.



Balloon Payments are a repayment method where the borrowers pay instalment or interest only payments, followed by a large balloon payment at some time in the future.  



Lump sum payments are simple, where the borrower repays the loan in a single payment at some time in the future, with or without interest.  These types of loans are usually used in loans of shorter duration (one year or less).



This particular Instalment Promissory Note requires equal monthly payments (which include Principal and Interest) until the Note is paid in full.

The Promissory Note should set for the repayment schedule including the amount of the monthly payment and when it is due.  Should the Borrower default, a provision is included in the note as to the consequences of default.  Often an acceleration clause is added for this purpose. If the Borrower is in default of the note, the acceleration clause calls for the entire amount of the loan coming due including applicable interest. Generally, if a default occurs the Borrower will be liable for the costs of collection and lawyers fees.

Please note that this information is not intended as and is not a substitute for legal advice



























Step-by-Step Instructions
Instalment Promissory Note

 At the top of the form, fill in the total loan amount and the date.

 Fill in the name of the Borrower, the Borrowers address, the Lenders name and address. Fill in the full amount of the loan (principal), and the interest rate that will be charged.

 In the next paragraph, enter the amount of the monthly instalment payment, and the date that the first payment will be due.  Payments will continue until the full amount of the loan and all accrued interest are paid in full.

Additional payments may be made at any time without a pre-payment penalty.

In the event of default, the entire amount of the loan will become due and payable. The amount due at the time of default will accrue interest at 15% or the highest rate permitted by law, whichever is less.

In the event of default, Borrower agrees to pay all reasonable legal fees.

Borrower waives demand, presentment, protest, notice of dishonour or non payment, notice of protest, and any and all lack of diligence or delays in collection. Here, presentment is defined as the act of submitting a formal statement of legal matter to a court or authorised person.

All payments must be sent to the designated address and must be made in Australian Dollars.

Borrower and any party to this note (endorser, guarantor, and sureties) agree to remain bound to this note until it is paid in full. Borrower waives demand, presentment and protest and all notices. Borrower will remain obligated under this note notwithstanding any modification, waiver, discharge or release of any obligation in this agreement.

If the Lender does not exercise a right or option under this agreement it does not waive any future right or option. This is a standard waiver provision often found in agreements.

There can be no modification of this agreement unless it is put in writing.



If any provision of this agreement is found unenforceable, it will not affect any other provision of the agreement.



 Fill in the state the agreement was entered into.

 The Borrower should sign the document. Both Borrower and Lender should retain a copy for their records.









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Instalment Promissory Note

Amount AUD
Date

FOR VALUE RECEIVED, the undersigned, _______________________________ (Borrower), maintaining an address at _______________________________ (Borrower's Address) promises to pay to the order of ________________________________  (Lender), whose address is ______________________________________  (Lender's Address), the principal sum of AUD_____________ (Principal), together with interest of _____% (Interest Rate) per year thereon from the date herein.

The unpaid Principal and accrued interest shall be paid in monthly Instalments of AUD_______, with the first payment beginning on __________________ and continuing every month thereafter with a like amount on the same date each month until the full amount of this note and all accrued interest is paid in full.

All or any part of the Principal may be prepaid at any time and from time to time without penalty.  Payments shall be applied first to accrued interest and the balance to the Principal.  

In the event of any default by the Borrower in the payment of Principal or interest after demand is made, the unpaid balance of the Principal of this promissory note shall, at the option of the holder, become immediately due and payable. Any amount due at the time of default shall accrue interest until payment at the rate of fifteen percent (15%) per year or the highest rate permitted by law, whichever is less.

Upon default in making payment within 7 days of demand, Borrower agrees to pay all reasonable legal fees and costs of collection to the extent permitted by law.

Borrower and all other persons who may become liable for the payment hereof severally waive demand, presentment, protest, notice of dishonour or non payment, notice of protest, and any and all lack of diligence or delays in collection, which may occur.

All payments hereunder shall be made to such address as may from time to time be designated by any holder and must be made in Australian Dollars.

Borrower and all other parties to this note, whether as endorsers, guarantors or sureties, agree to remain fully bound until this note shall be paid in full and waive demand, presentment and protest and all notices hereto. Borrower further agrees to remain bound by this note notwithstanding any extension, modification, waiver, or other indulgence, failure, discharge or release of any obligation hereunder.

The holders failure to exercise any right or option hereunder does not constitute a waiver of any future right or option.  

No modification to this document or indulgence by any holder hereof shall be binding unless in writing.

If any provision of this Note is deemed unenforceable, in whole or in part, for any reason, the remaining provisions shall still remain in full force and effect.

This note shall take effect as a sealed instrument and is made and executed under, and is in all respects governed by, the laws of: _____________________________ (State).


_________________________________
(Signature of Borrower)

Customer Reviews

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Reviews: 4


Delaware,

OH

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My need for a Promissory Note was satisfied completely in that it was being used to substantiate an agreement between two parties in the same legal family. It was short term (16 month)and was documentation of a "hand shake" finance arrangement among friends. As Borrower, I insisted on some documentation for the heirs benefit, in the event of an unexpected death of one of the involved parties.


Sacramento,

CA

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Straightforward form. Easy to follow, easy to use, easy to edit. Well priced. The underlined spaces require you to re-underline words you type into them, but that's no problem for someone who uses Word regularly.


Citrus Heights,

CA

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No Customer Comments


Silver Spring,

MD

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Handy


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