Use “Free Promise to pay Letter Template” and make lending easy
Lending and borrowing is part and parcel of a person’s life. But when it comes to lending and borrowing assets involving a huge amount, it cannot be taken lightly. If you are lending to a friend or a colleague, you would like to have a written agreement. You can easily draft a written agreement by taking help of free promise to pay letter templates, which are available online. All you are required to do, is to download a template and edit the form. Now, you are good to go.
Listed below are the points which are present in a free promise to pay form:
- The amount received:
The total amount which has been lend has to be mentioned clearly.
- The rate of interest:
The rate of interest being charged on the principle also needs to be mentioned.
- Event of acceleration:
If the borrower refuses to pay the amount, saying that he has become insolvent, the activity will be considered as an event of acceleration and the lender has the right of declaring the form to be due and payable.
In case, the principle, along with the interest has not been returned by the borrower, the lender has the right of charging the borrower. The attorney’s fees and other extra expenses need to be paid by the borrower.
- Governing body:
This form should contain the name of the state in which the form is made and signed.
- Signature of both the parties:
Finally, both the parties, i.e. the lender and the borrower need to put their signatures at the bottom of the form.
Friendship and word of trust has its own place but it is always a better option to keep a proof in the form of a promissory note.