FAMILY LOAN AGREEMENT
Loan Amount _________________ Dollars ($____________)
Date ______________, 20____
I. THE PARTIES. For the above value received by _________________________ with a
mailing address of _______________________, City of _________________________,
State of ________________, (the “Borrower”), agrees to pay
_________________________ with a mailing address of _______________________, City
of _________________________, State of ________________, (the “Lender”).
a. Family Relation. The Borrower is the ____________________ to the Lender.
II. PAYMENT. This agreement, (the “Note”), shall be due and payable, including the
principal and any accrued interest, in one of the following ways:

☐ Once per week beginning on ______________, 20____ and to continue every seven (7)
days until the balance is paid.

☐ Once per month beginning on ______________, 20____ and payment is due every thirty
(30) days until the balance is paid.

☐ Other _________________________________________________________________
All payments made by the Borrower are to be applied first (1 st) to any accrued interest and
then to the principal balance. The total amount of the loan shall be due and payable on the
____ day of ________________, 20____.
III. INTEREST. The Note shall

☐ Bear interest at a rate of _______________ percent (________%) compounded
annually. The rate must be equal to or less than the usury rate in the State of the Borrower.

☐ Not bear interest.
IV. PREPAYMENT. The Borrower has the right to pay back the loan in-full or make
additional payments at anytime without penalty.

Page 1 of 3

V. REMEDIES. No delay or omission on part of the holder of this Note in exercising any
right hereunder shall operate as a waiver of any such right or of any other right of such
holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or
waiver of the same or any other right on any future occasion. The rights and remedies of
the Lender shall be cumulative and may be pursued singly, successively, or together, in the
sole discretion of the Lender.
VI. EVENTS OF ACCELERATION. The occurrence of any of the following shall constitute
an "Event of Acceleration" by the Lender under this Note:
(a)

Borrower’s failure to pay any part of the principal or interest as and when

due under this Note; or
(b)

Borrower’s becoming insolvent or not paying its debts as they become due.

VII. ACCELERATION. Upon the occurrence of an Event of Acceleration under this Note,
and in addition to any other rights and remedies that Lender’s may have, Lender shall have
the right, at its sole and exclusive option, to declare this Note immediately due and
payable.
VIII. SUBORDINATION. The Borrower’s obligations under this Promissory Note are
subordinated to all indebtedness, if any, of the Borrower, to any unrelated third party lender
to the extent such indebtedness is outstanding on the date of this Note and such
subordination is required under the loan documents providing for such indebtedness.

IX. WAIVERS BY BORROWER. All parties to this Note including the Borrower and any
sureties, endorsers, and guarantors hereby waive protest, presentment, notice of dishonor,
and notice of acceleration of maturity and agree to continue to remain bound for the
payment of principal, interest and all other sums due under this Note notwithstanding any
change or changes by way of release, surrender, exchange, modification or substitution of
any security for this Note or by way of any extension or extensions of time for the payment
of principal and interest; and all such parties waive all and every kind of notice of such
change or changes and agree that the same may be made without notice or consent of any
of them.

Page 2 of 3

X. EXPENSES. In the event any payment under this Note is not paid when due, the
Borrower agrees to pay, in addition to the principal and interest hereunder, reasonable
attorneys' fees not exceeding a sum equal to the maximum usury rate of _______________
percent (________%) in the State of ___________________ of the then outstanding
balance owing on the Note, plus all other reasonable expenses incurred by Lender in
exercising any of its rights and remedies upon default.
XI. GOVERNING LAW. This Note shall be governed by, and construed in accordance with,
the laws of the State of ___________________ (STATE NAME).
XII. SUCCESSORS. All of the foregoing is the promise of Borrower and shall bind Borrower
and Borrower’s successors, heirs and assigns; provided, however, that Lender may not
assign any of its rights or delegate any of its obligations hereunder without the prior written
consent of the holder of this Note.
IN WITNESS WHEREOF, Borrower has executed this Promissory Note as of the
day and year first above written.
Borrower’s Signature:____________________________ Print:_____________________
Lender’s Signature:____________________________ Print:_____________________
Witness’s Signature:____________________________ Print:_____________________
Witness’s Signature:____________________________ Print:_____________________

Page 3 of 3