Massachusetts Promissory Installment Note (W/Balloon Payment)

Note:  The purchased version of this document includes a Loan Amortization Schedule Calculator (in Microsoft Excel format). This Excel spreadsheet will automatically calculate all monthly payments and interest, allowing the user simply to specify the loan amount, the annual interest rate, the loan period, the number of payments per year, and the start date of the loan. The calculator will then generate an attractive, detailed report outlining the payments owed and the due dates.

Promissory Installment Note
(w/Balloon Payment)

Massachusetts Promissory Installment Note
(w/Balloon Payment)

RECITATIONS:

Date: Borrower: Borrower's Address: Payee: Place for Payment: Principal Amount: Term: Monthly Payments:

________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ $_______________________________ ________________________  (months) $_______________________________

INTEREST RATE. Annual interest rate on matured, unpaid amounts shall be subject to interest at _____ per cent per annum, but not to exceed the maximum amount of interest permitted by the Laws of the Commonwealth of Massachusetts.

PAYMENT TERMS.  This Note is due and payable as follows, to-wit:  _____________________ (_____) [insert number of payments] equal monthly payments of $__________________ principal [insert monthly payment amount].  The first such payment due and payable on the 1^st day of _____________________ , 20____, and a like installment shall be due and payable on the same day of each succeeding month thereafter until the total principal of $__________________ principal [insert total principal amount] is paid in full.  If each payment is not paid on time, the remaining balance will be subject to interest at _____ per cent per annum, but not to exceed the maximum amount of interest permitted by the Laws of the Commonwealth of Massachusetts.

BALLOON PAYMENT.  Borrower promises to make a single, final payment for the entire balance owed to the Payee on or before __________________ [due date for balloon payment].

BORROWER'S PRE-PAYMENT RIGHT.  Borrower reserves the right to prepay this Note in whole or in part, prior to maturity, without penalty.

PLACE FOR PAYMENT.  Borrower promises to pay to the order of Payee at the place for payment and according to the terms for payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment date.

DEFAULT AND ACCELERATION CLAUSE.  If Borrower defaults in the payment of this Note or in the performance of any obligation, and the default continues after Payee gives Borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then Payee may declare the unpaid principal balance and earned interest on this Note immediately due.  Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law.

INTEREST ON PAST DUE INSTALLMENTS AND CHARGES.  All past due installments of principal and/or interest and/or all other past-due incurred charges shall bear interest after maturity at the maximum amount of interest permitted by the Laws of the Commonwealth of Massachusetts until paid.  Failure by Borrower to remit any payment by the 15^th day following the date that such payment is due entitles the Payee hereof to declare the entire principal and accrued interest immediately due and payable.  Payee's forbearance in enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or remedy for a subsequent cause, breach or default of the Borrower's obligations herein.

INTEREST.  Interest on this debt evidenced by this Note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of the maximum shall be credited on the principal of the debt or, if that has been paid, refunded.  On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded.  This provision overrides other provisions in this instrument (and any other instruments) concerning this debt.

FORM OF PAYMENT.  Any check, draft, Money Order, or other instrument given in payment of all or any portion hereof may be accepted by the holder and handled in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the payee and applied to this indebtedness in the manner elsewhere herein provided.

ATTORNEY'S FEES.  If this Note is given to an attorney for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay Payee all costs of collection and enforcement, including reasonable attorney's fees and court costs in addition to other amounts due.

SEVERABILITY.  If any provision of this Note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.

BINDING EFFECT.  The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.

DESCRIPTIVE HEADINGS.  The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this Note.

CONSTRUCTION.  The pronouns used herein shall include, where appropriate, either gender or both, singular and plural.

GOVERNING LAW.  This Note shall be governed, construed and interpreted by, through and under the Laws of the Commonwealth of Massachusetts.  

Borrower is responsible for all obligations represented by this Note.

EXECUTED this __________ day of _______________________, 20_____.

[Borrower's Signature:]

 

__________________________

[Borrower's Printed or Typed Name]:

__________________________

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