Personal Promissory Note Law and Legal Definition
A personal promissory note is a promissory note drawn when people make loans to family members and friends. Usually, friends and family members loan money between them by means of a verbal agreement on the tenure of the loan. Because there is no documentary proof as to the existence of the loan, this verbal agreement will not stand up legally in court. However, a personal promissory note is a legal document which ensures that money will be paid back by the borrower. A personal promissory note will contain the terms of the loan, amount borrowed, interest rate, and consequences upon default by the borrower to pay the loan. Generally, personal promissory notes can be bought from office supply stores or it can be downloaded from the Internet.
