A Kentucky promissory note outlines the terms of a loan agreement between a lender and a borrower. It serves as a written promise to repay a specified amount of the loan within a certain due date, plus interest. The maximum rate of interest is dictated by Kentucky state law and usury laws.
Individuals or businesses use a Kentucky promissory note when formalizing a loan agreement. The documents can be used for lending money between friends, financing a business venture, securing a personal loan, and everything in between.
There are several major types of promissory notes in the state of Kentucky:
States the borrower's promise to repay the principal sum and outlines the repayment terms.
The borrower pledges collateral, such as property or assets, to secure the loan. If the borrower defaults, the lender can seize the collateral to recover the principal balance.
Permits the lender to request repayment at any time. It does not have specified repayment dates.
Gather the following information to create a Kentucky promissory note:
Yes, as long as both parties agree, you can modify a promissory note to accommodate changes in repayment terms or other agreed-upon adjustments. It's important to document any modifications in writing.
In the event of a default, the lender can take legal action to recover the debt. This may involve filing a lawsuit, obtaining a judgment, and pursuing collection efforts.
Yes, a promissory note can be transferred or sold to another party, provided the terms of transfer are clearly stated in the original note or subsequent agreements.
In Kentucky, the statute of limitations for enforcing a promissory note is generally five years from the date the cause of action accrued.
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