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Demand Promissory Note Loan Agreement for the United States

Demand Promissory Note Loan Agreement Template for United States

A Demand Promissory Note Loan Agreement is a legally binding document used in the United States that combines elements of both a loan agreement and a promissory note. It documents the terms of a loan that is repayable on demand, meaning the lender can request full repayment at any time. The document includes essential terms such as principal amount, interest rate, payment provisions, and default consequences, while complying with federal and state-specific lending regulations.

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Demand Promissory Note Loan Agreement

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What is a Demand Promissory Note Loan Agreement?

The Demand Promissory Note Loan Agreement is commonly used in situations requiring flexible repayment terms while maintaining legal enforceability. This document type is particularly useful for business loans, bridge financing, or family lending situations in the United States. It provides more comprehensive terms than a simple promissory note while incorporating the 'on-demand' feature that allows the lender to call for repayment at any time. The agreement must comply with state usury laws, federal lending regulations, and the Uniform Commercial Code requirements for negotiable instruments.

What sections should be included in a Demand Promissory Note Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Brief context of the loan arrangement and purpose

3. Definitions: Key terms used throughout the document

4. Principal Amount: Statement of the loan amount

5. Interest Rate: Specification of interest rate and calculation method

6. Payment Terms: Description of demand nature of the note and payment procedures

7. Default Provisions: Consequences of default and remedies available

8. Governing Law: Jurisdiction and applicable law

9. Signature Block: Execution provisions and date

What sections are optional to include in a Demand Promissory Note Loan Agreement?

1. Security: Details of any collateral when loan is secured

2. Guarantees: Terms of any guarantees when there are guarantors

3. Prepayment Terms: Conditions for early repayment when early repayment is allowed

4. Assignment: Terms for transferring the note when note may be assigned

5. Representations and Warranties: Borrower's declarations for more complex loans

What schedules should be included in a Demand Promissory Note Loan Agreement?

1. Payment Schedule: If regular payments are contemplated despite demand nature

2. Security Description: Detailed description of any collateral

3. Guarantor Agreement: Separate guarantee documentation

4. Notice Provisions: Contact details and communication methods

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses





























Industries

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardized calculation of finance charges and annual percentage rates

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or public assistance status

Fair Credit Reporting Act (FCRA): Federal law regulating the collection, dissemination, and use of consumer credit information

Dodd-Frank Act: Comprehensive financial reform legislation affecting lending practices and consumer protection in financial transactions

Federal Trade Commission Act: Law prohibiting unfair or deceptive practices in commerce, including lending activities

State Usury Laws: State-specific regulations setting maximum legal interest rates and terms for loans

UCC Article 3: Uniform Commercial Code provisions governing negotiable instruments, including promissory notes

State Consumer Protection Laws: State-specific statutes protecting consumers in financial transactions and lending agreements

Documentation Requirements: Legal requirements for proper documentation, including format, content, and execution of promissory notes

Statute of Limitations: Time limits for legal enforcement of the promissory note, varying by state

Bankruptcy Laws: Federal and state regulations affecting the treatment of promissory notes in bankruptcy proceedings

Tax Regulations: IRS and state tax implications for both lender and borrower regarding interest income and payments

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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