Forms of Promissory Notes in Texas

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Promissory notes protect friends and family trusting enough to lend money as well as loan companies and banks who lend funds for a living. The notes detail the terms of the loan. Both parties, the lender and borrower, signal a meeting of the minds by signing the promissory note.


With an installment promissory note, the borrower agrees to repay the principal of the loan as well as any interest accrued over an agreed amount of time, due in monthly installments. In Texas the installment note includes the instructions and checklist for the loan, the security agreement and information about the note and agreement. The checklist includes the agreed-upon interest, the payment due date, late fees, total amount of monthly payment and what happens if the borrower pays the loan off early. Sometimes early payment lowers the amount of interest paid.

Bill of Sale

Owners of vehicles typically use a bill of sale. Key provisions in the Texas vehicle bill of sale include: the total sum paid for the vehicle, seller's and buyer's names and addresses, vehicle description, including the make, model, year and VIN number, covenants that describe any promises the seller makes to the buyer concerning the vehicle and the promissory note with payment information and terms.


An on-demand promissory note establishes the borrower's promise to pay the debt with interest. In Texas the legal note includes the total amount borrowed and the rate of interest as well as the rights and obligations of both parties. Even though the borrower can make regular payments, the total amount outstanding becomes due upon the demand of the lender. The Texas form also allows the borrower to pay the loan off early without penalty.

Horse Equine

When buying or selling a horse in Texas, a horse equine promissory note details the purchase and sale of the horse bought through financing. It is a simple interest note, which charges interest only on the principal amount, or the amount that remains unpaid. The seller typically provides the horse equine note along with a security agreement and installment purchase agreement.


About the Author

Earl Smith has been writing since 1996. His articles have appeared in "Focus" and "On the Scene" magazines and the "Rio Rancho News." He is an Air Force veteran and has a B.A. in business administration from Illinois State University.

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