CATEGORY: Promissory Note Questions

Answers to Frequently Asked Promissory Note Questions

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?

How Do I Enforce a Promissory Note Collateralized with Real Estate?

Creating a Promissory Note backed, secured or collateralized with real estate may be a problem, as promissory notes are not fully structured for collateral.

A holder of a promissory note is permitted to bring a lawsuit in court to collect money that is due and owing. However, if a promissory note does not also include a mortgage note on the real property “securing” the loan, the holder of the Promissory Note may not be able to foreclose on the property or take any action to remove the owner or tenant. Continue reading How Do I Enforce a Promissory Note Collateralized with Real Estate?

Can I Use a Promissory Note to Garnish Wages from a Person Who Defaults?

A promissory note is a contract between two people that outlines the terms of repayment on lent money. Such a contract must be enforced as would any typical breach of contract: through court.

Standard Legal is unaware of any situation where a person could simply present a promissory note to a bank or employer to collect on money owed through the garnishment of wages or accounts. Continue reading Can I Use a Promissory Note to Garnish Wages from a Person Who Defaults?