South Dakota Unsecured Promissory Note Template

The South Dakota Unsecured Promissory Note Template can be used to draft the terms of a loan agreement. The document, entered into by a borrower and lender, is legally enforceable (provided it has been properly formatted/signed/etc.). “Unsecured” promissory notes do not require the borrower to pledge collateral (as opposed to secured notes). For this reason, unsecured notes/loans typically feature higher interest rates (due to the inherent risk involved for the lender).

How to Write

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

Note: The .PDF form can be completed electronically.

Step 2 – The first paragraph of the note should contain the following details:

  • Date
  • Names of borrower/lender
  • Addresses of borrower/lender
  • Amount of loan
  • Interest rate that borrower will be charged

Step 3 – Payments – There are three possible payment options, select one from the following:

  • No Installments
  • Installments
  • Interest Only

Note: If “Installments” is selected the payment amount must be submitted. If either “Installments” or “Interest Only” is the chosen method then the payment frequency details must be entered.

Step 4 – Due Date – This subsection details the date in which the full balance of the note (including any fees/interest charges) must be paid off by.

Step 5 – Interest Due in Event of Default:

  • Fill in what interest rate the borrower will be charged (in the event of a default).

Step 6 – Late Fees:

  • If the borrower misses a scheduled payment, they will have X number of days to make the past-due payment.
  • If the borrower fails to make the payment within the number of days submitted in this subsection, the lender can charge a late fee to the account (submit the late fee amount).

Step 7 – Acceleration:

  • Provide how long the borrower will have to cure a default.
  • Failure of the borrower to cure the default provides the lender with the right to take legal action.

Step 8 – Signatures:

  • Submit the date in the first input field.
  • Enter the names of the borrower/lender (printed).
  • The borrower AND lender must sign the note.
  • The witnesses must submit their names/signatures.
South Dakota Unsecured Promissory Note - Adobe PDF - Microsoft Word

South Dakota Unsecured Promissory NoteAdobe PDFMicrosoft Word

Comments

comments