Balloon Note Template

This Balloon Note (“Note”) is made and entered into on [Date], by and between:

Lender:
Name: __________________________
Address: __________________________
Phone: __________________________
Email: __________________________

Borrower:
Name: __________________________
Address: __________________________
Phone: __________________________
Email: __________________________

Collectively referred to as the “Parties.”

1. Principal and Interest

The Borrower promises to pay the Lender the principal sum of $[Principal Amount], with interest at the rate of [Interest Rate]% per annum, calculated on the outstanding balance.

2. Payment Schedule

The Borrower shall make [Monthly/Quarterly] payments of $[Amount] each, beginning on [Start Date] and continuing on the [Day] of each month thereafter until [Maturity Date].

On [Maturity Date], a final balloon payment of $[Balloon Amount] shall be due, representing the remaining balance of the principal and any accrued interest.

3. Prepayment

The Borrower may prepay the Note in whole or in part at any time without penalty. Prepayments will first be applied to accrued interest, then to principal.

4. Default

The Borrower shall be in default if:

• Any scheduled payment is not made within [X] days of its due date.

• The Borrower becomes insolvent, files for bankruptcy, or breaches any material term of this Note.

Upon default, the Lender may declare the entire outstanding balance immediately due and payable.

5. Collateral (if applicable)

This Note is secured by the following collateral:
[Description of collateral, e.g., real estate, equipment, vehicle]

The Lender may repossess or foreclose on the collateral in accordance with applicable law if the Borrower defaults.

6. Notices

All notices under this Note shall be in writing and delivered personally or sent by certified mail to the addresses listed above.

7. Governing Law

This Note shall be governed by and construed in accordance with the laws of [State/Country].

8. Binding Effect

This Note shall bind and benefit the Parties and their respective heirs, successors, and assigns.

9. Entire Agreement

This document constitutes the entire agreement between the Parties and supersedes all prior negotiations or understandings.

Signatures

Lender Signature: ____________________________ Date: _________
Printed Name: _________________________________________

Borrower Signature: ____________________________ Date: _________
Printed Name: _________________________________________