New York Unsecured promissory note
Record one principal advance, the interest basis and the single maturity payment. Identify the actual holder and any separate guarantee.
Before you prepare the document
Identify each borrower and holder, the original debt and funding dates, funds actually received, payment records, interest and other charges. Confirm any collateral and any existing obligation it continues to secure. Omit personal account numbers from the document.
Interest, security and location
New York. For ordinary covered private credit, identify the borrower, the ordinary 16% civil screen, the loan or written installment commitment, actual consideration and any qualifying residential collateral. The $250,000 civil-rate exception has a one- or two-family residential security exception. The separate $2.5 million rule and the criminal interest threshold have different conditions. A rate of exactly 25% does not by itself satisfy a rule requiring more than 25%. General Obligations Law §5-501
When the parties, collateral, loan negotiation or repayment involve different states, record each location and determine the applicable requirements before signing. Verify the filed instrument and applicable filing law separately from any law chosen for the note.
Borrower protections
Pre-service debt can qualify for the Servicemembers Civil Relief Act interest reduction. A covered mortgage can qualify for an additional year. The Military Lending Act separately considers credit extended to covered servicemembers and dependents. Verify applicable federal disclosures before consummation. 50 U.S.C. §3937 · CFPB Military Lending Act guidance
Choose a repayment structure
Questions about funding and payment
Can I prepare a note before funding?
Choose the planning worksheet while a transfer is pending. Reconcile the actual net principal with the dated payment record before acknowledging receipt.
What happens after a partial payment?
Record how the holder applied the payment and what balance remains. Identify any agreed release of specific collateral. Check the applicable filing or title procedure separately.