Texas Promissory Note 5
Texas Promissory Note 1
Texas Promissory Note 2
Texas Promissory Note 3
Texas Promissory Note 4
Texas Promissory Note 5
Texas Promissory Note 1

Texas Promissory Note

    A Texas Promissory Note is a legal document stating a borrower's commitment to repay borrowed money within a specified time. With our Texas Promissory Note template, you can draft a legal contract that allows you to recover your money legally in case of non-payment in Texas. Download it for free and smoothen the loan recovery process.

Download templateUse template
Texas Promissory Note
PDF Word

Texas Promissory Note

Fill & sign this document online

In the state of Texas, the promissory note template provides the lending party with security that money loaned to the borrower will be reimbursed. The Texas promissory note template helps lenders collect loans from the borrower in a legal way.

If you are planning to lend or borrow money, make sure both parties sign the Texas promissory note to avoid future legal issues relating to loan repayment. In this article, we will be discussing Texas promissory note and when it should be used. Moreover, you will also learn how to write Texas promissory notes.

What Is a Texas Promissory Note?

Texas promissory note is a legally enforceable document that contains key details with regards to loan transactions between lenders and borrowers. Of note, the lender can be any individual or bank.

In this contract, the lender agrees to offer a certain amount of loan whereas the borrower promises to repay the loan on agreed-upon time. Texas promissory notes are more detailed legally binding as opposed to a simple IOU form.

In Texas, this promissory note also requires a co-signer who approves that he/she will satisfy the loan in case the borrower fails to make a loan repayment. This signature of witness along with signs of lender and borrower gives Texas promissory note a legal validity.

Mainly, there are two types of Texas promissory notes, namely ‘Texas Secured Promissory Note’ and ‘Texas Unsecured Promissory Note’. Broadly speaking, secured notes are backed by any property or asset as additional security. In contrast, an unsecured note does not allow the lender to secure any asset for money loaned.

If you have a trustworthy borrower, you can use an unsecured promissory note. However, if you are unsure about the credibility of the borrower, the use of a secured promissory note is highly recommended.

Get Our Customizable Texas Promissory Note Template for Free

When lending out money, it is vital to prepare for any eventualities like the borrower failing to pay. Our Texas Promissory Note sample is a legally binding document that you can download and edit to protect your legal rights in the loan relationship. Access it today and avoid losing money due to defaulters.

Get started now Download template

When Should You Use a Texas Promissory Note?

Texas promissory note is used whenever lending money to a borrower. This document is used by both lenders and borrowers as it outlines terms of the loan including principal loan amount, interest rates (if any), payment structure, late fees, and penalties, and so on.

Both parties use this promissory note Texas form to avoid insecurities regarding money loaned and future legal issues. Usually, two kinds of promissory notes are used. Lenders can either use secured notes or unsecured notes depending on varying situations.

More importantly, lenders use secured promissory notes that are secured by any collateral which is pledged by the borrower. This collateral can be any property or asset such as home or vehicle.

On the other hand, lenders are more inclined to use unsecured promissory notes when the borrower is any trustworthy friend or relative.

How to Write a Texas Promissory Note?

When it comes to writing a Texas promissory note, make sure you mention whether the promissory note is a secured or unsecured note. Besides, promissory note Texas form must include information about both lender and borrower along with loan terms.

Initially, you will need to download the Texas promissory note template. Then you will need to proceed with the following elements:

  • Enter the start date of the document
  • Write the names of both borrower and lender
  • The complete email address of both lender and borrower
  • Principal loan amount
  • Interest rate (if any)

After that, you have to enter the details about the payment method, the due date for loan repayment, late fees, and accrued interest.

Of note, if it is a Texas secured promissory note, make sure it includes a detailed description of collateral that is pledged by a borrower to satisfy loan payment. In Texas promissory notes, different clauses are used for creating specific loan terms. These clauses include:

  • Interest rate which is due in case of borrower’s default on the loan
  • Allocation of payment
  • Prepayment
  • Acceleration
  • Fees and cost of an attorney
  • Waiver of presentments
  • Severability (in case portion of the note is invalid)
  • Conflicting terms
  • Notice
  • Name of co-signer
  • Governing law

Lastly, signatures of both parties are required on the note along with the signature of witness with full date.

Get Our Customizable Texas Promissory Note Template for Free

When lending out money, it is vital to prepare for any eventualities like the borrower failing to pay. Our Texas Promissory Note sample is a legally binding document that you can download and edit to protect your legal rights in the loan relationship. Access it today and avoid losing money due to defaulters.

Get started now Download template

Conclusion

Lenders and borrowers in Texas should use promissory notes whenever lending or borrowing money. Texas promissory note helps lenders avoid legal issues pertaining to loan repayment, specifically when there is doubt on borrower and his/her credit history.

You can download a great template for Texas promissory note on our website CocoSign. So what are you waiting for? Visit our website and download any template for a promissory note that best matches your needs.

DOCUMENT PREVIEW

TEXAS STANDARD PROMISSORY NOTE

 

On the ___ day of _______________, 20___, hereinafter known as the "Start Date", ___________________________ [Borrower’s Name] of ___________________

____________________________________________________ [Borrower’s Mailing Address], hereinafter known as the “Borrower”, has received and promises to payback ___________________________ [Lender’s Name] of __________________________

______________________________________________________ [Lender’s Mailing Address], hereinafter known as the “Lender”, the principal sum of _____________________ US Dollars ($_______________) with interest accruing on the unpaid balance at a rate of ___ percent (%) per annum, hereinafter known as the "Borrowed Money", beginning as of the Start Date in the manner as follows:

 

1. PAYMENTS: The full balance of this Note, including all accrued interest and late fees, is due and payable on the ___ day of _______________, 20___, hereinafter known as the "Due Date". 

 

  1. Installment(s). (check the applicable box)

 

☐ - LUMP SUM – Borrower shall pay a lump sum to be made in-full, principal and interest included, of ________________________ Dollars ($__________________) by the Due Date.

 

☐ - INSTALLMENTS – Borrower shall pay principal and interest in the amount of ________________________ Dollars ($__________________) on

 

 ☐ a weekly basis with any remaining balance payable on the Due Date.

 ☐ a monthly basis with any remaining balance payable on the Due Date.

 ☐ a quarterly basis with any remaining balance payable on the Due Date.

 

LATE FEE - There shall be a late payment fee of _____________ Dollars ($_____) if an installment is not paid on-time along with the default interest due, as described in Section 3, if the Lender does not receive the installment on the due date.

 

2. SECURITY: (check the applicable box)

 

☐ - UNSECURE – There shall be NO SECURITY provided in this Note.

 

☐ - SECURE – There shall be Property described as ___________________________

________________________________ hereinafter known as the “Security”, which shall transfer to the possession and ownership of the Lender IMMEDIATELY pursuant to Section 6A of this Note. The Security may not be sold or transferred without the Lender’s consent until the Due Date. If Borrower breaches this provision, Lender may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Lender shall have the sole-option to accept the Security as full-payment for the Borrowed Money without further liabilities or obligations. If the market value of the Security does not exceed the Borrowed Money, the Borrower shall remain liable for the balance due while accruing interest at the maximum rate allowed by law.

 

3. INTEREST DUE IN THE EVENT OF DEFAULT: In the event the Borrower fails to pay the note in-full on the Due Date, unpaid principal shall accrue interest at the maximum rate allowed by law, until the Borrower is no longer in default. 

 

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

 

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

 

6. ACCELERATION: If the Borrower is in default under this Note or is in default under another provision of this Note, and such default is not cured within the minimum allotted time by law after written notice of such default, then Lender may, at its option, declare all outstanding sums owed on this Note to be immediately due and payable.

 

6A. SECURITY - This includes any rights of possession in relation to the Security described in Section 2.

 

7. 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.

 

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

 

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

 

10. 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.

 

11. 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.

 

12. CONFLICTING TERMS: The terms of this Note shall control over any conflicting terms in any referenced agreement or document.

 

13. 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.

 

14. CO-SIGNER: (check the appropriate box)

 

☐ - NO COSIGNER – This Note shall not have a Co-Signer.

 

☐ - CO-SIGNER –  This Note shall have a Co-Signer known as ___________________ [Name of Co-Signer] hereinafter known as the "Co-Signer", and agrees to the liabilities and obligations on behalf of the Borrower under the terms of this Note. If the Borrower does not make payment, the Co-Signer shall be personally responsible and is guaranteeing the payment of the principal, late fees, and all accrued interest under the terms of this Note. 

 

15. EXECUTION: The Borrower executes this Note as a principal and not as a surety. If there is a Co-Signer, the Borrower and Co-Signer shall be jointly and severally liable under this Note.

 

16. GOVERNING LAW: This note shall be governed under the laws in the State of Texas.

 

17. SIGNATURE AREA

 

 

Lender’s Signature ______________________ Date ___________________

 

Print Name ___________________

 

 

Borrower’s Signature ______________________ Date ___________________

 

Print Name ___________________

 

 

Co-Signer Signature ______________________ Date ___________________

 

Print Name ___________________

 

 

Witness Signature ______________________ Date ___________________

 

Print Name ___________________

Related Promissory Note Templates

View All Documents >>
Disclaimer

CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.

Easier, Quicker, Safer eSignature Solution for SMBs and Professionals

  • No credit card required
  • 14 days free