What is a promissory note in Arizona?

An Arizona promissory note form is a legal document that’s used when making a private loan. They’re usually used when someone borrows money from a company, family member, or friend. This note outlines the agreement surrounding the loan, including the repayments, loan amount, interest, and more. Also, Arizona promissory notes can be either secured, meaning that the borrower has listed assets to secure the loan, or it can be unsecured.

Why use a secured promissory note in Arizona?

Using a secured promissory note means that the borrower has listed assets to secure the loan. As such, there’s some assurance to the lender that they’ll get back their money, even if the borrower can’t repay the loan. When you use a sample promissory note for Arizona , you should see a section where these assets can be listed. The promissory note is unsecured without it.

How long is a promissory note valid in Arizona?

A promissory note in Arizona is only valid for six (6) years after the due date of the last payment. This means that if the lender hasn’t started any actions to collect the payment within six years after the termination date, they won’t be able to proceed with legal action. It also means that any terms within the promissory note will no longer be enforceable.

How to enforce a promissory note in Arizona?

Before you can start to enforce a promissory note in Arizona, you’ll first need to file a petition with the courts and receive a judgment in your favor. Once you’ve got the judgment, you can proceed to enforce the judgment by setting a garnish or wage execution, bank levy, seizure of assets, or a judgment liens against real estate that the borrower might have.

Promissory Note Arizona Template

Prepared for:

[Borrower.FirstName][Borrower.LastName]

[Borrower.Company]

Created by:

[Lender.FirstName][Lender.LastName]

[Lender.Company]

Borrower: [Borrower.FirstName][Borrower.LastName] of [Borrower.StreetAddress], [Borrower.City], Arizona, [Borrower.PostalCode]

Lender:[Lender.FirstName][Lender.LastName] of [Lender.StreetAddress], [Lender.City], Arizona, [Lender.PostalCode]

Principal amount: $(insert dollar amount of loan)

Date: (Date)

This promissory note is a binding legal document by and between Borrower and Lender. By signing the final page of this promissory note, both parties agree to uphold, enforce, and abide by the terms of this document in its entirety.

The Lender agrees to loan the balance indicated above to Borrower. Borrower agrees to repay this amount, plus interest in the amount of (insert interest rate)% per month from the date stated above.

The Borrower agrees to secure the loan against their assets, including (insert assets being secured against, i.e., house, car, etc.) and hereinafter known as the “Security”.

If the Borrower is in default under this Note or is in default under another provision of this Note and such default is not cured within the minimum allotted time by law after written notice of such default, then Lender may, at its option, declare all outstanding sums owed on this Note to be immediately due and payable.

If the market value of the Security does not exceed the Borrowed Money, the Borrower shall remain liable for the balance due while accruing interest at the maximum rate allowed by law.

The Lender shall have the option to accept the Security as full payment for the Borrowed Money without further liabilities or obligations.

Borrower agrees to make periodic payments towards the total amount of the loan plus interest accrued annually, indicated in the table below:

Payment Date:	Payment Amount:
(MM/DD/YYYY)	(Payment Amount)
(MM/DD/YYYY)	(Payment Amount)
(MM/DD/YYYY)	(Payment Amount)

If the Lender receives any installment payment more than (insert number) days after the date it is due, a late payment fee of $(insert dollar amount) shall be payable with the scheduled installment payment along with any default interest due.

This note will be repaid in full, including any interest and late fees, no later than (MM/DD/YYYY).

The Borrower has the right to prepay all or any part of the principal amount of this Note, together with accrued and unpaid interest thereon, at any time without penalty or premium of any kind.

Holder reserves the right to enforce this promissory note as payable in full in each of the following conditions:

Failure to make payment by any of the dates in the table above
Borrower’s breach of any other aspect of this promissory note
Death, incapacitation, or bankruptcy of Borrower

If the Borrower fails to pay the note in full on the due date or has failed to make an installment payment due within 15 days of the due date, the unpaid principal shall accrue interest at the rate of (insert number) percent per year OR the maximum rate allowed by law, whichever is less, until the Borrower is no longer in default.

Borrower agrees to be solely responsible for all costs, expenses, and expenditures incurred by Lender in enforcing the terms of this promissory note, including, without limitation, fees from attorneys and collection agencies.

Any legal costs the Lender incurred by enforcing this note as a result of any default by the Borrower will be added to the principal then outstanding and shall be due and payable to the Lender immediately upon demand of the Lender.

This note is legally binding and non-transferable by either party without prior written consent by both parties.

This promissory note is the sole agreement governing the loans mentioned. No other statements, promises, or commitments shall be considered valid or enforceable.

This promissory note and the interpretation of its terms shall be governed by and construed per the laws of the State of Arizona and subject to the exclusive jurisdiction of the federal and state courts located in (insert county), Arizona.

Terms & Conditions

Waiver

The Borrower and all sureties, guarantors, and endorsers waive presentment for payment, a notice of dishonor, protest, and notice of protest.

Successors and Assigns

This Note will inure to the benefit of and be binding on the respective heirs, executors, administrators, successors, and permitted assigns of the Borrower. This Note prohibits the

Borrower from assigning their rights or delegating its duties without the Lender’s prior written consent. This Promissory Note may not be transferred without the express written consent of the Lender.

Joint and Several Liability

If there is more than one Borrower of this Note, each Borrower shall be jointly and severally liable.

Amendment

No verbal or other agreements shall modify or affect the terms of this Note. Neither Borrower nor Lender may amend or modify this Note except in writing.

Severability

If any part or all of this note is found to be invalid or unenforceable, the remaining provisions will remain valid.

Notifications

Any notice or communication under this Note must be in writing and sent via one of the following options:

[Lender.Phone], [Lender.Email]

[Lender.StreetAddress], [Lender.City], Arizona, [Lender.PostalCode]

IN WITNESS WHEREOF, each of the Parties has executed this Promissory Note, both Parties by its duly authorized officer, as of the day and year set forth below.