CATEGORY: Promissory Note Questions

Answers to Frequently Asked Promissory Note Questions

If an Ex-Spouse Refinances a Home with a Promissory Note in Place, Must Payment Against that Note Be Made?

Most likely, yes, there would be an obligation to pay a Promissory Note upon the refinancing of a home formerly owned by a divorced couple.

But the terms of the promissory note itself (and perhaps even the Divorce decree) must be closely examined to ensure that the obligation to pay is still legally binding. Continue reading If an Ex-Spouse Refinances a Home with a Promissory Note in Place, Must Payment Against that Note Be Made?

Would a Property Promissory Note Due to a Family Member of One Spouse Affect the Finances of a Divorce Settlement?

Generally, an unsecured promissory note (i.e. a promissory note not secured by a mortgage or a lien on the property) will not reduce a party’s obligation to pay support (or otherwise alter the marital property division) in a Divorce action. Continue reading Would a Property Promissory Note Due to a Family Member of One Spouse Affect the Finances of a Divorce Settlement?

Does a Last Will and Testament Override a Promissory Note?

A Last Will & Testament may contain language that forgives indebtedness owed to the decedent by a third party, even if the indebtedness is confirmed through a written Promissory Note.

But if the holder of the Promissory Note is not a beneficiary of the assets of the estate, another solution is used. Continue reading Does a Last Will and Testament Override a Promissory Note?

Is an Unsigned Email Confirming Repayment of a Loan Equal to a Promissory Note?

When a friend or family member borrows money, many times that person will confirm their intent to repay the loan through an email or letter. And while such a confirmation helps solidify the existence of the loan, it is far and away a poor substitute for a legal and valid Promissory Note. Continue reading Is an Unsigned Email Confirming Repayment of a Loan Equal to a Promissory Note?

Does the Stated Interest Rate Override an Amortization Schedule in a Promissory Note?

Generally, the language of the Promissory Note itself would have control over any payment schedule that is not incorporated directly into the note.

But if the amortization schedule is incorporated directly into the Promissory Note (by language in the Note that makes direct reference to the schedule), then there is an ambiguity as to the obligations of the parties. Continue reading Does the Stated Interest Rate Override an Amortization Schedule in a Promissory Note?