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California Unsecured Promissory Note Template

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The California unsecured promissory note is a document designed to establish the basic payback structure for a loan between two parties. The major difference between this document and the secured version of the document is risk. The lender is in a far riskier position throughout the period of the agreement because there is not a guarantee the lender will receive his or her money if the borrower defaults on the balance.

How to Write

Step 1 – Fill-in the top portion of the page which will require the the addresses of the parties involved in the agreement as well as the full amount of the balance with the attached interest rate.

Step 2 – Select how you would like the balance to be paid. The options range from no installments, to installments, to interest only payments. If you have selected a payment method involving installments, enter the time spans between installments.

Step 3 – Heading to section two (2), enter the due date for the full balance of the balance.

Step 4 – For sections six (6) and seven (7), enter the cost of a late fee as well as amount of time required to pass until a late fee is issued. Then, enter the amount of days until acceleration occurs.

Step 5 – To finish the agreement, date the document in the designated spot on the last page as well as obtain the signatures of the lender, borrower, and witness.

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