The Maryland unsecured promissory note is a legal document that outlines the terms and conditions in regards to a money loaning transaction. In the note, topics such as late fees, interest rates, payment types, and various time spans are covered. Although it is a legal document, the lender holds a large financial risk as there is no built in security. Because of this risk, the lender should only work with those he or she knows personally or those with a high credit score.
How to Write
Before heading to the first step, enter the current date, the full names and addresses of both parties, and the balance and interest rate for the note.
Step 1 – Select the payment type that will be used for the note at the first (1) section. The options consist of:
No Installments – Borrower makes a single payment including accrued interest.
Installments – Borrower makes weekly or monthly payments consisting of both a portion of the balance and interest.
Interest Only Payments – Borrower makes weekly or monthly payments consisting of only interest.
[If an option with installments is selected, check the box next to either weekly or monthly payments and enter the day of the week the payment will be due]
Step 2 – For sections two (2) and three (3), enter the due date of the entire balance (including any late fees and accrued interest), then, enter the interest rate that goes into effect in the case of a default on the balance. The interest rate can only revert back to normal if the borrower leaves a default state.
Step 3 – In section six (6), enter the cost of a late fee and the amount of days needed to pass before the lender can issue a late fee.
Step 4 – Heading to section seven (7), enter the time span for acceleration. In an acceleration, all outstanding costs are due immediately. For an acceleration to occur, the borrower must be in default.
Step 5 – On the last page of the note, enter the current date and the printed and signed names of the borrower, lender, and witness.