What is a promissory note in Ohio?

A promissory note in Ohio is a simple document in which two parties agree on the terms of a loan. The lender is identified as the Lender and the borrower as the Borrower. In general, the promissory note serves as a promise of payment to be made by the Borrower to the Lender according to the terms stated in the document.

Why use a secured promissory note in Ohio?

A secured promissory note in Ohio is a more reliable method of ensuring that a debt will be repaid. In a promissory note, the borrower agrees to pay the debt or else forfeit property that was pledged as collateral within the document. This property becomes the property of the Lender for his use, enjoyment, or as a method of payment for the debt.

How long is a promissory note valid in Ohio?

Ohio law provides that the statute of limitations for promissory notes is six (6) years. This means that the promissory note will be valid during this period and can be used to claim any delay in the payment of the note. However, if this time elapses and isn’t claimed, it becomes invalid, and the courts won’t entertain such a case.

How to enforce a promissory note in Ohio?

When enforcing a promissory note in Ohio, the first step that must be taken is to file a petition for judgment within the appropriate courts within the state. However, the Lender may also choose to hire professional collection agencies to handle the debt collection process for them.

Promissory Note Ohio Template

Prepared for:

[Borrower.FirstName][Borrower.LastName]

Created by:

[Lender.FirstName][Lender.LastName]

This Promissory Note (the "Note") entered as of (Date), by and between

[Borrower.FirstName][Borrower.LastName] (the Borrower),

being able to send mail to [Borrower.StreetAddress][Borrower.City][Borrower.State] [Borrower.PostalCode], and

[Lender.FirstName][Lender.LastName] (the Lender),

being able to send mail to [Lender.StreetAddress][Lender.City][Lender.State][Lender.Phone].

The laws of the State of Ohio regulate this Note.

1. Parties Identification

For the purposes of this document, [Borrower.FirstName][Borrower.LastName] will be identified as the "borrower", while [Lender.FirstName][Lender.LastName] will be identified as the "Lender".

2. Amount of Money Owed

2.1 Promise of payment

The Lender undertakes to make full payment of (Loan.Amount) plus any interest accruing thereon. In doing so, he/she will follow all terms and specifications included in this promissory note.

2.2 Interest included in the debt

Interest. Payment of this debt shall contain the interest indicated above, plus any additional expenses involved in this promissory note (late payments, collateral, etc.). Following the laws of the State of Ohio, the maximum interest will be taken on such debt (LegalInterest.Amount)%.

In addition, if a payment is received, it will first seek to cover the interest accrued on the note and then cover the principal debt.

3. Form of Payment

This note will be paid in equal-sized installments in the amount of (Payment.Amount). The first payment will be due on the (Payment.Date) date and will seek to cover (Payment.period) periods consecutively until said debt is satisfied.

4. Ways to Guarantee the Payment

To guarantee payment to the Lender, the borrower presents this collateral property (CollateralProperty.Description). In the event that payment is not made on the stipulated date or the borrower defaults, this collateral property becomes the full property of the Lender and may be disposed of as payment of the debt.

5. Borrower Signature

Signature

MM / DD / YYYY