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- 1). Calculate the loan repayment frequency. Refer to the underlying loan agreement to calculate the loan repayment period and the payment frequency. Insert the date the note is signed at the top of the promissory note. The borrower will not be legally liable to fulfill the note until after the date on the note.
- 2). Insert the principal amount of the loan on the promissory note. This means, the amount of the loan excluding any annual interest. Write the amount fully in decimal number form as well as in word form. For example, if the principal amount borrowed is $60,000, write the number $60,000 and then write the words sixty thousand U.S. dollars.
- 3). Insert the following into the note: the annual interest rate; the date the first payment is due; the frequency of payments and the amount to be paid at each payment date. Insert any bulk payments that may be made at the start of the loan and take them into consideration. Record a full amortization schedule, meaning you should record each consecutive payment date with the amount of the loan outstanding at each payment date. Include the date at which the loan will be fully paid off assuming the schedule is followed. Insert a section that states that the loan is unsecured.
- 4). Include the full names and addresses of lender and borrower at the top of the note. If either party is a company, include the full company name, plus the name of the company legal representative. Insert lines at the bottom of the note for both parties to sign. Leave space for a notary public to sign.
- 5). Sign the promissory note n duplicate in the presence of a notary public. Each party should keep an original signed copy.
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