Business Law Question

So many of us have signed promissory notes at one time or another in our lives. Few of us, unfortunately, have spent enough time going over the legal details of the notes. Be honest – did you really read the legal details of the last car loan you signed?

This assignment is for you and your personal gain so that the next time you want to borrow money, you’ll (at least) have a working understanding of the legalese contained in the note.

For This Assignment

Provide two examples of promissory notes that you, and/or a significant other, have signed and that you still have the paperwork for. Common examples of promissory notes include personal loans, automobile loans, real estate loans, business loans, and student loans (you may use others). If you don’t currently have an active promissory note, please either use prior notes or find examples online of two different (fully completed) types of promissory notes for this assignment.

Questions to Answer

Briefly introduce the type of promissory notes you signed and the reasons for signing them (being careful to leave out any sensitive information you do not wish to share – you can substitute actual information with fictitious information)

Fully describe the following terms of the promissory notes:The repayment type (Installment Payments, Installments with Final Balloon Payment, Due on Specific Date (“Lump Sum”), Due on Demand (“Payable on Demand”)Maturity dateDefault and collection termsAdditional previsions (choose any that apply and explain the specific terms for each): Acceleration, Amendment, Collateral, Governing Law, Joint/Several Liability, Late Charges, Prepayment, Right to Transfer

Are the promissory notes secured or unsecured? What is the difference? If secured, what are the terms?

What sections of the promissory notes are similar?

Which sections differ? Why do you think they differ?

What happens if you (the Borrower) misses a payment or pays late?

SYSTEMS THINKING QUESTION: Why is an interest rate typically charged on a promissory note? (refer to the Time Value of Money)