Delaware Unsecured Promissory Note Template
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The Delaware Unsecured Promissory Note Template is a type of written agreement that is used to detail the terms of a loan. In contrast to “secured” notes, unsecured notes are not backed by collateral (of the borrower). Unsecured notes are most often used for borrowers who are deemed “low risk” (in that they have either excellent credit or a high level income/net worth).

Note: Under Delaware State law, interest rates cannot exceed anywhere over 5% of the Federal Reserve’s “discount rate.”

How to Write

Step 1 – Download the template (available in .PDF or Word format).

Step 2 – Enter the following information into the allotted input fields in the first paragraph:

• Date of agreement/note (dd/m/yy)
• Legal name of borrower
• Borrower’s address
• Name of lender
• Lender’s address
• AND
• Submit the principal sum of the loan
• Per annum interest rate

Step 3 – Payments – There are three different payment methods that may be selected:

• No Installments
• Installments – fill in the installment amount (including interest)
• Interest Only

Step 4 – If the selected payment is “Installments” OR “Interest Only” more information must be provided:

• Select the payment schedule (weekly or monthly).
• Enter the payment due date and amount.

Step 5 – Due Date:

• Fill in the due date of the full balance.

Step 6 – Interest Due in Event of Default:

• Review the subsection.
• Enter the interest rate that will be applied should the borrower default on the loan.

Step 7 – Late Fees:

• Fill in the number of days that the borrower will have to make a payment (after the initial due date) before any late fees may be applied.
• Enter the late fee amount.

Step 8 – Acceleration:

• If the borrower defaults on the loan they will X amount of days to cure the default.
• Fill in the number of days.

Step 9 – Review the remaining subsections.

Step 10 – Signatures:

• Date the note in the provided format.
• Submit the signatures of the lender/borrower.
• Submit the printed names of the lender/borrower.
• AND
• Enter the printed/signed names of the witnesses.