What Is a New Hampshire Promissory Note?

A New Hampshire promissory note is a written agreement between the borrower and the lender. A co-signer may also be a party to the agreement. The note may be secured or unsecured.

• The secured note means that there is a piece of collateral that may be collected if the borrower does not comply with the agreement. A car loan is an example of a secured promissory note. If the borrower does not repay the loan or if they do not comply with the terms of the agreement, the lender would repossess the vehicle. The vehicle acts as collateral.
• An unsecured New Hampshire promissory note does not include collateral.

New Hampshire promissory notes must comply both with contract law and, in certain instances, securities law.

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To write a New Hampshire promissory note, it is important first to determine whether the note is secured. If it is, this information should be listed in the title. For example, Secured New Hampshire Promissory Note. If a secured note is not titled correctly, the court may treat it as unsecured if a dispute arises. Then, certain information is used to create the scope of the agreement:

• The date that the promissory note was created. This date, as well as the date listed for the signatures, is used to help verify that the parties entered into the agreement together. The dates also help determine the amount of time that a party to the agreement has to approach the court for help or for the lender to get involved in collections activities. The dates in the agreement should be formatted as month, day, and year.
• The identity for each person and their role within the agreement. This is the legal name of the person or entity and their role within the agreement. Parties include the lender, borrower, and, if needed, a cosigner. For example, Susan Jones, Co-Signer.
• The mailing address for each party. The mailing address should be listed for each party. If the promissory note is secured, the physical address for the borrower and any co-signer should be listed if it is different from the mailing address. This can help locate collateral if necessary. If the lender has a separate payment address, the payment address should be documented in the part of the New Hampshire promissory note that addresses repayment of the loan.
• The amount loaned to the borrower. This is the principal amount. It does not include interest charged for the loan. Before this document is executed, it is important to review this amount to ensure it is correct.
• The amount of yearly interest charged. Remember, if an interest rate is not specified, the lender may not charge more than 10%. However, if an interest rate is mentioned in writing, it can be any amount.
• Payment agreement. This is how the loan gets repaid. It must list how many payments (installments), the amount of each payment, and the due date for each payment. If there is a late fee, the amount should be documented as well as when it will be assessed.

A New Hampshire promissory note template helps to ensure a lender in a money-lending transaction is reimbursed the loaned balance plus interest from a borrower in a timely fashion. To help ensure this, both parties will need to agree on the details surrounding the agreement such as payment types, interest rates, penalties, and other important areas. Additionally, the notes serve as legal documents because both parties’ signatures plus a witness’ signature are required on the documents.

Usury Rate – There is no legal limit on interest rates. It is unclear whether an exorbitant rate could be considered “unfair” under the New Hampshire Consumer Protection Act and hence unlawful.