Never loan money - not even to family - without getting a Promissory Note from the borrower. Some of these forms are State-specific, but most of these downloadable templates can be used anywhere in the United States or its territories.
Loaning money to family and friends can often be a recipe for disaster. Even with an IOU or promissory note, sometimes the borrower will fail to repay the debt, and you will have to decide whether you should sue them for the money. If you do take them to court, your signed promissory note is proof that you made the loan, and that the borrower promised to repay it on the terms agreed to in the note.
But often the actual signing of a legal document makes the transaction more business-like, more like dealing with a bank. That in itself can act as a catalyst to ensure that the borrower makes the payments on time and honors the terms of the loan, especially when the borrower considers that you have a signed promise from him / her to repay the debt which will stand up as evidence in court.
Secure the repayment of a loan in Mississippi with this easy template Balloon Promissory Note.
The borrower agrees to make a series of equal monthly payments against the secured amount, until the date of the final payment which will be a balloon payment, i.e. payment in full of the entire balance of principal and interest outstanding at that date.
The borrower may make additional payments in addition to the monthly installments by paying a prepayment penalty, w.....