Time note is kind of a financial or loan document that is signed by the borrower for the creditor or lender and it includes the amount of borrowed money along with the date when the repayment will be made. It depends on each time note if it contains periodic payments of the loan from the time of issuance of the note to the termination of the note or like a balloon note that concludes the full repayment of the loan on a specific date.
Brief description of the Time Note:
It is very common that when a person or a company takes loan from a bank or a loan firm, both parties has to sign a legal contract known as loan agreement. This is more sophisticated and professional document that is signed between the creditor and the debtor and the contents of the agreement are drafted by the attorneys. On the other hand, when two individuals have the same deal in which a person takes loan from another person, they don’t need to sign a legal loan agreement but they can also use the time note for personal reasons. There are various types of time notes including promissory note and balloon note. The key elements that a particular time notes depend on the type of the note.
For example if it’s a promissory time note, this will include the names of both parties, the amount of loan, the date when the periodic payments or installments of the loan will be made to the creditor where on the other hand, if it’s a balloon note, this will only include a specific date when the debtor agreed to return the loan in full to the creditor. Also when two individuals get in a loan deal, there is usually no interest rate for the loan thus, the time note doesn’t include any specification for the interest rate to be paid with the repayment of the loan. As compared to a loan agreement, the time note is not very valued and it can’t be challenged or used other than the local courts i.e. on state or international level. There are no specific limitations for the amount of the loan to use a time note but it can be anything from a thousand dollars to multimillion dollars.
Key elements to include in the Time Note:
- Name of the debtor or borrower
- Name of the creditor or lender
- Date when the debtor borrowed the money
- Date when the debtor signed the time note
- Details of the loan (i.e. amount)
- Details of repayment of the loan (i.e. payment schedule, periodic installments and duration to pay back the loan in full)
- Sworn statement by the debtor that he has borrowed the money from the creditor and he is legally required to pay back his debt
- Mutually agreed terms and conditions of the time note
- Validation, expiration and termination of the time note
- Signature of both parties
Here is preview of a free Sample Time Note created as filla-ble PDF Form,
Here is download link for this Time Note,