STRAIGHT NOTE

DO NOT DESTROY THIS NOTE:  When paid, this note, and the Deed of Trust must be surrendered to the trustee with request for reconveyance.

 

STRAIGHT NOTE

 

$250,000, [STATE/CITY], Date: 

After date, and for value received, the Buyer [ENTER NAME AND ADDRESS] promises to pay to the Seller [ENTER NAME AND ADDRESS], or order, at [ENTER], the sum of TWO HUNDRED AND FIFTY THOUDAND Dollars, payable in five (5) years or sooner, secured by Assignment of Deed of Trust on the following described land:

 

[LEGAL DESCRIPTION OF LAND]

 

The said payment shall be per the following repayment schedule:

  1. Payment shall be due on the 1st of each month throughout the five (5) year payment period.  
  2. The rate of interest shall be at 9% per annum. 
  3. The Principal balloon payment of $50,000 shall be due on February 1, 2022;
    $50,000 due on February 1, 2023; $50,000 due on February 1, 2024; and $50,000 due on February 1, 2025.  The Remaining principal and interest shall be due on Feb 1, 2026.
  4. Any principal paid above $50,000 during each stated balloon period carries a 20% prepayment penalty (between transaction closing date and February 1, 2022); prepayment penalty of 16% in year 2 (Feb 2, 2022-Feb 1, 2023); 12% in year 3 (Feb 2, 2023-Feb 1, 2024); 8% in year 4 (Feb 2, 2024-Feb 1, 2025); and 4% in year 5 (Feb 2, 2025-Feb 1, 2026).

 

  1. There shall be a Late fee of 15% on any and all late payments, with a five (5)-day grace period.

 

Should suit be commenced to collect this note or any portion thereof, such sum as the Court may deem reasonable shall be added hereto as attorney’s fees. This note is secured by a certain DEED OF TRUST to the [ENTER TRUSTEE], as TRUSTEE.

 

  _______________________________          _______________________________                      

                      [NAME]                                                         [NAME]  

 

     

 

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