Discount Note with Installment Payment Schedule for Repayment
(Individual Borrower)


Summary

This template is a discount note that provides for installment payments, and is for use when the borrower is an individual. This template includes practical guidance and drafting notes. When the maturity date on a discount note must be stretched out for a relatively long period, the lending bank generally prefers to arrange a schedule of installment repayments. No amortization is necessary because the interest is due from the beginning as calculated into the face payoff amount of the note. In addition, the installments do not have to retire the note entirely by the maturity date, but a remainder of principal that can be managed by the borrower on the due date can be left to accompany the final installment payment. For a template discount note with an installment payment for a partnership borrower, see Discount Note with Installment Payment Schedule for Repayment (Partnership Borrower). For a template discount note that provides for a security interest in favor of the lender, see ...