Straight Note with Flat Interest Running Until Payment or Demand
(Individual Borrower)


Summary

This template is a straight note evidencing a commercial loan entered into by an individual borrower that provides for flat interest payments running until payment or demand of the note. The basic type of commercial promissory document is the standard promissory note. This template includes practical guidance and drafting notes. This type of note is normally drawn for preferred customers, such as large accounts, and is also commonly used in other secured financing transactions. It is appropriate for short seasonal loans as well, and for individuals that are short of cash. Notes are commonly drafted for three or six months after date of draw, and the interest rate is a true figure at slightly higher than prime rates, payable monthly or at maturity. The borrower typically repays substantial amounts of principal with interest payments. The note may be considered for renewal at the end of its term, but the lending bank is free to impose new terms and a new interest rate.