Demand Promissory Note
(Monthly Interest Payment)

Summary

This template is a basic demand note with monthly interest paid. This template includes practical guidance, drafting notes, and alternate and optional clauses. A promissory note evidences the obligation of one party (the maker or borrower) to another party (the payee or lender) to pay a sum certain according to terms and conditions mutually agreed upon by the parties. While promissory notes are usually entered into when lending money, they can also be used for other transactions, such as in the sale of goods or provision of services transactions, when one party is extending credit to another party that may be unable to provide the funding required at the time of the transaction. In this promissory note, the maker promises to pay the payee a certain sum of money with interest at an agreed upon rate. This template includes provisions addressing the method of payment, default, and general rights of the parties. For additional guidance on promissory notes, see Promissory Notes and Promissory Notes Resource Kit (Small to Mid-Sized Law).