Promissory Note

A promissory note is a written promise by one party (the maker) to pay a specified sum to another (the payee), either on demand or at a stated future date. It is the basic instrument of commercial lending and seller financing.

Key terms: principal, interest rate, repayment schedule, default triggers, prepayment rights, security (if any), governing law, and dispute resolution. A note may be secured by a deed of trust on real estate, a UCC-1 on personal property, or a personal guaranty.

California enforces promissory notes through breach-of-contract suits and accelerated collection procedures. We draft enforceable notes, perfect security interests, and pursue collection, including post-judgment enforcement, when a maker defaults.