Promissory notes can be a useful instrument of debt when used properly. Whether you are using them as a company or an individual, these notes allow people access to financing in a straightforward and manageable way. In order to ensure that any documentation of debt is valid in your future, it is important to ensure that you know who can write a promissory note. At Sidhu and Associates Notary, we handle a wide variety of document notarizations and other services for our clients, including the drafting and notarization of promissory notes.
What is a Promissory Note?
A promissory note is a written message that contains a pledge from one party to pay another party a certain amount of money at a future time. The note will usually include the amount owed, the interest rate, the date the note was written and signed by both parties, and the date that the amount owed must be paid to the payee. Promissory notes are used for all manner of loans, as they allow almost anyone aside from a bank to lend money with a legal safety net. These notes are legally enforceable, although they have slightly less legal weight than a loan contract. Promissory notes do not usually offer a lender any specific right to recourse, but they can be used in court to settle accounts.
Who Can Write a Promissory Note?
Although just about anyone can write a promissory note, it is important to realize that some notes hold up better under investigation than others if legal procedures are observed while writing the note. For a promissory note to be legally binding, it requires only the details of the owed amount and the printed and signed names of both parties; however, without notarization, these notes can be called into question in court if it ever comes to that. At the very least, it is best to have any promissory notes reviewed and notarized by a notary public to ensure that both parties are protected in the future.
If you would like to learn more about who can write a promissory note and when it can be used, or to ask us any other questions about notarized documents and how we can help, please contact the experienced team at Sidhu and Associates Notary. We are always happy to answer any questions you might have.