Texas Unsecured Promissory Note 3
Texas Unsecured Promissory Note 1
Texas Unsecured Promissory Note 2
Texas Unsecured Promissory Note 3
Texas Unsecured Promissory Note 1

Texas Unsecured Promissory Note

    A Texas Unsecured Promissory Note is a pact between a lender and borrower agreeing to set loan terms without requiring any collateral. Our well-researched and proofread Texas Unsecured Promissory Note sample is your direct ticket to creating a legally binding lender-borrower agreement in Texas within minutes. Access it now and streamline the loan recovery process.

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Texas Unsecured Promissory Note

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The Texas unsecured promissory note is a contract between a lender and a borrower. So, if you’re planning to lend some money, or borrow it, it is best to make a complete payment schedule. If you’re in Texas, you should use an unsecured promissory note to set out a schedule for loan payment.

This note, however, is not secured by an object, meaning that a lender may not be able to retrieve the loaned money if the borrower defaults on the loan. Thus, it is crucial to screen potential borrowers to avoid this situation.

What Is a Texas Unsecured Promissory Note?

Texas unsecured promissory note is a legal contract that contains all the details regarding the loan payment schedule between a lender and a borrower. It is a banknote issued by the lender to establish how the borrower plans to pay back the money to the lender.

In an unsecured promissory note Texas, the lender has to trust the credibility of the borrower without receiving anything in return. If the borrower enters into default payment, the lender will lose all of its money.

Despite the high risk, the unsecured promissory note is beneficial for both parties. It provides a better interest rate, and thereby, a greater return. On the other hand, a borrower doesn’t have to pledge his/her property as collateral, making it easier to lend money.

If, however, the borrower fails to return the money, the lender will have to file a lawsuit to collect the promised money.

Get a Free Texas Unsecured Promissory Note Template

When loaning out money, it is essential to minimize the risk of default and loss due to non-payment. Our Texas Unsecured Promissory Note template helps you get around this problem by enabling fast and easy creation of documentation to deal with non-payment in Texas. Download it today and prevent loss of money when offering unsecured loans.

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Differences between Texas Secured and Unsecured Promissory Note

In a secured promissory note Texas, the contract is secured by some collateral like property. This means that if the lender fails to pay the balance, the borrower can seize the agreed property to reimburse the loan.

A promissory note that is secured by collateral requires an additional document. In case the collateral is real property, the contract will require a deed of trust or mortgage. Contrarily, in the case of personal property, the contract demands a security agreement.

In an unsecured promissory note Texas, there is no obligation of payment with a property securing the balance. If the borrower is unable to pay, the lender can only file a lawsuit in the hope to seize sufficient assets from the borrower to satisfy the loan.

For a borrower, unsecured promissory note Texas is an ideal loan contract, where the borrower can use any available property to secure other loans.

What Is Included in a Texas Unsecured Promissory Note?

The Texas unsecured promissory note includes all the necessary information that a lender needs. The promissory note includes the following sections:

In section 1, both parties enter their addresses, names, and the current date, with the note’s interest rate. Then, the contract contains the payment methods that a borrower needs to select.

The borrower can either select no installment or installment options. If the installment option is selected, the borrower has the option to choose either weekly or monthly payments.

The second section contains all the details of the entire balance that the borrower has to pay to the lender

The third section of a Texas unsecured promissory note contains information regarding the interest rate. This interest rate will come into effect if the borrower fails to deliver the payment within fifteen days on a payment.

The fourth and fifth sections include information on late fees. This section also enables the payee to set a timespan that he/she is willing to wait if a default occurs.

Finally, in the last section of a Texas unsecured promissory note, the borrower, lender, and a witness record their sign.

Get a Free Texas Unsecured Promissory Note Template

When loaning out money, it is essential to minimize the risk of default and loss due to non-payment. Our Texas Unsecured Promissory Note template helps you get around this problem by enabling fast and easy creation of documentation to deal with non-payment in Texas. Download it today and prevent loss of money when offering unsecured loans.

Get started now Download template

Conclusion

Now that you know the importance of Texas unsecured promissory note, you can use this contract to either lend or borrow money.

Unsecured promissory note Texas is the best way for a borrower to lend money. Lenders can benefit from it too by specifying high-interest rates. However, it is important to check the credibility of the borrower before lending him/her the money.

If you’re looking to download templates for Texas unsecured promissory note, visit our website CocoSign to find the best promissory note templates.

DOCUMENT PREVIEW

TEXAS PROMISSORY NOTE(UNSECURED)

 

 

 

ON THIS ____ DAY OF ____________________, 20___, _________________________________ [Name of Borrower], of _______________________ [Address of Borrower], hereinafter known as the “Borrower” promises to pay to _________________________________ [Name of Lender], of _______________________ [Address of Lender], hereinafter known as the “Lender”, the principal sum of ________________________ Dollars  ($__________________), with interest accruing on the unpaid balance at a rate of _______________ percent (___%) per annum in accordance with TX FIN § 303.009 (Interest and Usury) of the Texas Statutes.

 

This shall begin as of the date above in the manner that follows:

 

  1. PAYMENTS: Borrower shall pay (check the applicable box)

 

☐ - NO INSTALLMENTS.  Payment in full of principal and interest accrued shall be payable on the due date.

 

☐ - INSTALLMENTS of principal and interest in the amount of ________________________ Dollars ($__________________)

 

  ☐ - INTEREST ONLY PAYMENTS on the outstanding principal balance.

 

If installments or interest only payments are checked above, such installment payment shall be due and payable on the (check the applicable box)

 

☐ - ____ day of every month beginning on the ____ day of ____________________, 20___.

 

☐ - Every week beginning on the ____ day of ____________________, 20___.

 

All payments shall be made to Lender at the address set forth below, unless Borrower is provided with written notice of an alternative address.

  1. DUE DATE: The full balance on this Note, including any accrued interest and late fees, is due and payable on the ____ day of ____________________, 20___.

 

  1. INTEREST DUE IN THE EVENT OF DEFAULT: In the event that the Borrower fails to pay the note, in full, on the due date or has failed to make an installment payment due within 15 days of the due date, unpaid principal shall accrue interest at the rate of _______________ percent (___%) per annum OR the maximum rate allowed by law, whichever is less, until the Borrower is no longer in default.

 

  1. ALLOCATION OF PAYMENTS:  Payments shall be first credited any late fees due, then to interest due and any remainder will be credited to principal.

 

  1. PREPAYMENT:  Borrower may pre-pay this Note without penalty.

 

  1. LATE FEES:  If the Lender receives any installment payment more than ____ days after the date that it is due, then a late payment fee of _________________ shall be payable with the scheduled installment payment along with any default interest due.

 

  1. ACCELERATION:  If the Borrower is in default under this Note and fails to make any payment owed and such default is not cured within ____ days after written notice of such default, then Lender may, at its option, shall declare all outstanding sums owed on this Note to be immediately due and payable, in addition to any other rights or remedies that Lender may have under state and federal law.

 

  1. ATTORNEYS’ FEES AND COSTS: Borrower shall pay all costs incurred by Lender in collecting sums due under this Note after a default, including reasonable attorneys’ fees. If Lender or Borrower sues to enforce this Note or obtain a declaration of its rights hereunder, the prevailing party in any such proceeding shall be entitled to recover its reasonable attorneys’ fees and costs incurred in the proceeding (including those incurred in any bankruptcy proceeding or appeal) from the non-prevailing party.

 

  1. WAIVER OF PRESENTMENTS: Borrower waives presentment for payment, notice of dishonor, protest and notice of protest.

 

  1. NON-WAIVER:  No failure or delay by Lender in exercising Lender’s rights under this Note shall be considered a waiver of such rights.

 

  1. SEVERABILITY:  In the event that any provision herein is determined to be void or unenforceable for any reason, such determination shall not affect the validity or enforceability of any other provision, all of which shall remain in full force and effect.

 

  1. INTEGRATION:  There are no verbal or other agreements which modify or affect the terms of this Note.  This Note may not be modified or amended except by written agreement signed by Borrower and Lender.

 

  1. NOTICE:  

Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and such notices shall be made to the parties at the addresses listed below.

 

  1. EXECUTION: The Borrower executes this Note as a principal and not as a surety.  If there is more than one Borrower, each Borrower shall be jointly and severally liable under this Note.

 

SIGNATURE AREA

 

This agreement was signed the ____ day of ____________________, 20___ by the following:

 

 

_______________________                                                _______________________    

Lender’s Signature                                                               Borrower’s Signature

 

 

_______________________                                                _______________________    

Lender’s Printed Name                                                        Borrower’s Printed Name

 

 

_______________________                                                _______________________    

Witness’s Signature                                                             Witness’s Signature

 

 

_______________________                                                _______________________    

Witness’s Printed Name                                                       Witness’s Printed Name                                                       

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