A promise to pay letter is a financial agreement between a lender and a borrower in which the lender commits to provide money to the borrower in exchange for interest.
The letter holds the borrower responsible for repaying the money according to the terms agreed upon. If the borrower does not repay the debt, they will be in default and their collateral would be seized.
Promise To Pay Letter Sample
The undersigned agrees to pay to [Robert and Janet Calhoun] the principal sum of Five thousand, six hundred and seventy five dollars and no cents. [$ 5,675.00] This note also includes interest of [six percent 6%].
The principal amount, including interest, is payable in payments as follows: [two hundred and seventy five dollars and no cents $275.00] on the 1st day of August 2021 and [one hundred and seventy five dollars and no cents $175.00] due the 15th of August 2021 and every month thereafter until this loan is paid in full.
All installments are due on the 1st and 15th day of each and every month thereafter until this Note is fully paid. The only exception is the final payment, if not paid at an earlier date, which will be due on 21st day of July 2022 in the amount of [thirty nine dollars $39.00]. All payments made will be first applied to interest and then principal balance.
Payments are to be by mailing to [7689 Stone Ridge Blvd. Reynoldsburg, Ohio 43068]. The lenders reserve the right to change the address in writing if necessary. It may become necessary for the lenders to secure the amount of said note.
The undersigned agrees that this note may be revocable due to non-payment of any collection costs, such as court, and other collection activities will be added to the balance.
Should the lender exercise this option, the entire unpaid balance of the loan and interest becomes due and payable immediately. Reasonable collection activities may include attorney fees and obtaining a judgment.
By signing this document, both parties agree to the terms and guidelines laid forth.