Installment Note with Separate Schedules for Repayment of Principal and Interest (Individual Borrower)
Summary
This template is an installment note that provides for the payment of principal and interest at different rates by the use of separate payment schedules and is for use when the borrower is an individual. This template includes practical guidance and drafting notes. A common variation of a standard commercial note provides for specified repayments of principal and interest set forth on separate schedules. This may be useful, for instance, in the case of an individual borrower that cannot foresee repayment of the note within a short, definite period, but is capable of making minimum payments of principal on a regular basis. In this illustration, a higher interest may be delayed and accumulated until periods when the borrower has more available funds. Thus, the note may be drafted so that interest is payable quarterly or semiannually, while the principal is scheduled on a monthly basis at equal installments. If the note is for a longer duration, the principal payments may be scheduled for ...