Promissory Note (Lump-Sum Payment With Interest)

PROMISSORY NOTE -

LUMP-SUM PAYMENT OF PRINCIPAL
WITH MONTHLY INTEREST-ONLY PAYMENTS

$__________________ [City], [State]

For value received, the undersigned ("Borrower”) promises to pay to _____________ (“Payee”), or order, at its offices at [ address], the principal sum of ____________________________________________ Dollars ($___________), together with interest at the rate hereinafter provided for on the unpaid principal balance of this Note from time to time outstanding until paid in full.

This note shall be paid within ____ years. Interest-only payments shall be made by Borrower to Payee on or before the 1st day of each month. The entire principal balance and any accrued but unpaid interest shall be fully paid on or before [DATE].

Interest shall accrue on the unpaid and outstanding principal balance of this Note commencing on the date hereof and continuing until repayment of this Note in full at a rate equal to ___% per annum, or the maximum amount of interest allowed under the laws of the State of [State], whichever is less. .

Nothing contained in this Note shall be deemed to require the payment of interest or other charges by Borrower or any other person in excess of the amount that the Payee may lawfully charge under the applicable usury laws. In the event that Payee shall collect moneys which are deemed to constitute interest which would increase the effective interest rate to a rate in excess of that permitted to be charged by applicable law, all such sums deemed to constitute interest in excess of the legal rate shall be credited against the principal balance of this Note then outstanding, and any excess shall be returned to Borrower….