Allonge to Negotiable Promissory Note
(Residential/Commercial) (TX)

Summary

This allonge to negotiable promissory note may be used by an existing Texas lender to transfer and indorse a promissory note(s) to a new lender. This template includes practical guidance and drafting notes. The allonge is attached to the existing promissory note to document its transfer and to include any necessary language or signatures without adding them to the promissory note itself, which often lacks sufficient space. However, it is acceptable in Texas to provide an indorsement at the bottom of a negotiable promissory note if there is sufficient space. See Tex. Bus. & Com. Code § 3.204 (2023). The key provision of the allonge is the indorsement language. An assignment of lien (deed of trust) will also need to be executed by the existing lender and recorded with the county clerk to give the new lender non-judicial foreclosure rights. For a template of a deed of trust, see Deed of Trust (TX). For a template of an assignment of a Texas deed of trust, see Assignment of Deed of Trust (Commercial) (Texas). For more information about promissory notes, see Promissory Note (Acquisition Loan). For guidance on financing commercial real estate in Texas, see Commercial Real Estate Acquisition Loan Resource Kit (TX). See also Junior Associate Real Estate Resource Kit (Acquisition Finance). For information on the process of buying and selling real property in Texas, see Purchasing and Selling Commercial Real Estate Resource Kit (TX) and Residential Purchase and Sale Transactions Resource Kit (TX). For information on recording real property documents in Texas, see Recording Procedures (TX) and Recording Rules for Real Property Documents (TX). For a list of key resources covering real estate-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Real Estate, Summer Associate Resource Kit: Real Estate, In-House Real Estate Resource Kit, and Federal Government Summer Intern Resource Kit: Real Estate.