Questions and Professional Answers

• Promissory Note

  My husband asked for a loan from his company. But then the paper that he signed (the promissory note), he didn't signed it in person because he was in another country. even the address that was in the promissory note was in that another country. He sent that promissory note through email. There was no witness or it wasn't even notarized. My question is, do they have an appeal because they are threatening to garnish my husband's wages? Thanks!

  • Re: Promissory Note

    From the facts you've outlined, it would seem rather clear that your husband received a loan from his employer which if not repaid could be enforced through whatever legal remedy might be available to the company, including the garnishment of your husband's wages. Whatever technical defects may lie with the loan paperwork or its execution should not absolve him of responsibility for paying back this loan (in my opinion).

    Michael E. Hendrickson
    Attorney & Counsellor at Law
    211 North Union Street Suite 100
    Alexandria, VA 22314

• Promissory Note

  Have an unpaid promissory not and looking at going to small claims court in Texas. We have cancelled check for $3000. Borrower completed promissory note and agreed to repay $4200 in 10 days. Question is does this fall into usury, should we just try to collect the $3000 + interest on the promissory note of 10%.

  • Re: Promissory Note

    It is usury..and since no Note..check for max interest but I believe it is what law presently allows..yoou will be lucky to collect the $3000..ask for legal interest when you file..

    Donald McLeaish
    McLeaish&Associates, P.C.
    402 West Wheatland
    Duncanville, TX 75116

• Statute of Limitation on a Promissory Note

  I was wondering if a Statute of Limitations is applicable to a Promissory Note? We recently sold our business partly with a guaranteed Promissory Note and have not been payed by our Buyers in 15 months. Does a Statute of Limitations even apply to a Promissory Note?

  • Re: Statute of Limitation on a Promissory Note

    A promissory note is a contract and, therefore, the statute of limitations governing written contracts in the governing jurisdiction would apply.Your question indicates that Illinois law governs the note, and, under Illinois law, the statute of limitations on breaches of written contracts is 10 years. Thus, you have 10 years from the date of the breach to initiate suit.Promissory notes typically contain "acceleration clauses," which mean that the entire sum is due upon breach. Thus, assuming the facts as stated in your question, you would have a claim (under Illinois law) for the entire amount due under the note.-- Kenneth J. Ashman; KAshman@AshmanLawOffices.com; www.lawyers.com/alo

    Kenneth J. Ashman
    Ashman Law Offices, LLC
    55 West Monroe Street, Suite 2650
    Chicago, IL 60603

• Promissory Note

  a)How many years is a promissory note valid in the state of NJ?b)If the Promisor dies and his wife didn't sign on the promissory note, is she responsible for any of his debt?

  • Re: Promissory Note

    Assuming that you have given all of the needed information (and no insult, I assure you, it is almost impossible for a person to give ALL of the critical information in a posting like this), then you may want to consider the following ideas.Usually, a promissory note would be valid for six years; it could be a different time period, depending on a variety of factors. The time period normally starts to run on the later of the signing of the note or on the date of last payment (although this could be extended by other circumstances).If you would like, give me a call to set up an appointment; I am in northern New Jersey. My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.Disclaimer: you can not rely on the advice of an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

    Robert Davies
    The Davies Law Firm, P.A.
    45 Essex Street, Suite 3 West
    Hackensack, NJ 07601

• Promissory Notes

  Does a Promissory Note require both parties signature to be legal? Can only one party sign it without a notary or witness and it still be considered a legal document? What if the party that did not sign the Promissory Note is now deceased? What are the requirements to make certain that a Promissory Note is legally binding upon borth parties? Can a person's Estate try to collect on a Promissory Note which the deceased did not sign?

  • Re: Promissory Notes

    Only the person who owes the money needs to sign it. There is no requirement that the note be witnessed or notarized.

    Thomas Moens
    Moens Law Offices, Chartered
    1523 52nd Avenue
    Moline, IL 61265

• promissory note

  my mother wrote me a promissory note after my father died to pay me money that i loaned them when the house was ever sold,but now my brother is saying this is untrue and the note is a fake and wants it tested. my mother now claims the conversation never took place or remembers writing the note but we now know she was playing a mind game with us all and this led to a family argument, on the evidence of this promissory note could i get the money that i am owed

  • Re: promissory note

    As noted on the LawGuru website, all questions to this firm must be answered with reference to British Columbia law. In B.C. one of the main reasons for signing a promissory note is specifically to avoid arguments over whether or not the loan was made. In all liklihood you would succeed if you sued. Your brother's opinion is irrelevant unless he was present when the conversation about the loan (when you agreed to it) took place and/or when the note was signed. His request to have the note tested is also irrelevant because the dispute is between your mother and you, not you and your brother. If it is disputed by your mother and she wants it tested, at that point you should have the court order her to pay for the testing by a forensic document examiner (although you may end up paying initialy, assuming you win, she will most likely have to pay you back for it). You should tell your brother the matter is between you and your mother and refuse to discuss it with him. There are a number of other issues that could arise, but you have not given all of the facts so this opinion could change; when a lawyer you see has all of the facts his or her opinion may be different, but you should see a lawyer right away.

    Donald McLeod
    Donald R. McLeod Law Corp.
    832 Fisgard Street, Suite 103,
    Victoria, British Columbia, Ca, AL V8W 1S1

• Short Sale; Lender demanding promissory note

  I have an offer for the short-sale of my home in CA. The 2nd mortgage holder is demanding that I sign a promissory note for the deficiency. I know I can not afford to repay the $55k as my husband and I are divorcing and he is not on the loan just the deed. Is the promissory note a secured or unsecured debt? Do I let this transaction fail and default to foreclosure if I do not sign the promissory note? What are my options?

  • Re: Short Sale; Lender demanding promissory note

    Whether the promissory note is secured or unsecured depemds upon whether you agree in the underlying deal to give the lender a security interest in any collateral. There is also a secondary issue as to whether the note is an additional obligation, kind of like a guarantee, or whether it extinguishes and replaces your existing obligation to the 2nd lender. Probably the former.Whatever happens, the guy wo is owed $55K on the 2nd is going to be around and making trouble. He will no doubt become a so-called "sold out junior" when (or if?) a foreclosure wipes out his collateral, and as a then-unsecured creditor, will no longer be bound to go after the collateral first; he will be allowed to sue you and get a judgment against whatever else you have, can garnish wages, and all that unhappy stuff.I would say perhaps shift some of the burden of making your decisions to your divorce lawyer, where at least there is a professional responsibility to you to use care and not mis-advise, and to try to get a property settlement in the divorce court that shifts as much of the burden and the future uncertainty to your husband as the law allows.

    Bryan Whipple
    Bryan R. R. Whipple, Attorney at Law
    P O Box 318
    Tomales, CA 94971-0318

• Promissory Note

  My ex-husband and I signed a promissory note stating I would pay him $50,000 within one year of our divorce for the equity in our home. The note was not notarized or witnessed and signed only by us. The real estate was awarded to me solely in the divorce, without any type of payment to my ex. Is the promissory note legal and binding?

  • Re: Promissory Note

    Yes

    David Anderson
    Mahoney Anderson LLC
    P.O. Box 44504
    Eden Prairie, MN 55344

• promissory note (unsecured) on a purchase of a business

  I have a Promissory note due. I have paid the parties 1/2 the note, however, they want the full amount. I asked for an extension of 60 days and received a Letter of Demand asking for the remainder. What are the consequences if I cannot pay the full amount due according to the promissory note?

  • Re: promissory note (unsecured) on a purchase of a business

    Depends on what the terms of the note says, or barring anything to the contrary... they can take you to court. I don't know what kind of promissory note this was, but depending on the parties and the note... you could be liable for their attorney's fees resolving the issue.

    Jeb Burton
    The Burton Law Firm
    555 University Ave, STE 275
    Sacramento, CA 95825

  • Re: promissory note (unsecured) on a purchase of a business

    Basically, you expose yourself to a collection lawsuit if you don't pay on time. Whether this is highly likely or somewhat unlikely depends in large degree on the unpaid amount and whether the note calls for attorney fees to be paid by the loser in the event of a suit. The larger the amount, the more likely a suit; if the amount is less that $10,000, suit is more likely going to be brought in Small Claims Court.In addition to having to pay a judgment against you, the suit would have adverse consequences for your credit rating.Many notes given for the purchase of a business have unusual terms covering default and enforcement, including the taking of security interests or putting up collateral. You should review the terms of the note and all other documents relating to the purchase of the business. The seller or lender may be entitled to proceed against particular collateral such as your stock in the business, its assets, your real property, etc.If the amount is substantial, I'd suggest consulting with a lawyer to see if you have any defenses.

    Bryan Whipple
    Bryan R. R. Whipple, Attorney at Law
    P O Box 318
    Tomales, CA 94971-0318

• Promissory Note Arizona

  Does a ''Promissory Note'' that was formed in Maricopa County, AZ have to have a Dollar Amount stipulated? Or, can a ''Promissory Note' simply talk in theory and not mention an amount. If so, what is the other party promissing?

  • Re: Promissory Note Arizona

    A promissory note can be either negotiable or non-negotiable. The default is negotiability, but it can be made non-negotiable either by its title or by the payment terms. The distinction is important because the Uniform Commercial Code primarily (or only?) addresses negotiable instruments. If a promissory note is not negotiable, you have to look to other law, perhaps the common law of the state where it was issued, not the more uniform UCCs of the various states.Second, it is not necessary that a promissory note state a specific dollar amount. It is sufficient that the amount due can be determined from the language of the note. For example, I have seen promissory notes requiring payment of principal of $X plus interest at 2.5% over the then-prevailing prime rate as published in The Wall Street Journal. I don't think the holders of such notes would have any trouble enforcing them anywhere in the U.S.On the other hand, a document making no specific promise whatsoever to pay money to a particular person, or the bearer, in a determinable amount and at a determinable time (including "on demand"), is probably not a promissory note at all, even if labeled as such.

    Bryan Whipple
    Bryan R. R. Whipple, Attorney at Law
    P O Box 318
    Tomales, CA 94971-0318

  • Re: Promissory Note Arizona

    No, you need specific terms including the amount.

    Debra Palomino
    PALOMINO LAW FIRM, P.C.
    One East Camelback Rd., Ste. 300
    Phoenix, AZ 85012

  • Re: Promissory Note Arizona

    The same answer given by the Arizona attorney also applies in California. A promissory note is a negotiable paper. It must contain the specific amount and other specific terms in order to retain its negotiability under the Uniform Commercial Code which mostly applies to both states.

    Stanley Moerbeek
    The Law Offices of Stanley L Moerbeek
    1370 N. Brea Boulevard, Suite 210
    Fullerton, CA 92835

  • Re: Promissory Note Arizona

    I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

    Gordon Fauth
    Fauth Law Offices
    1801 Clement Ave., Suite 101
    Alameda, CA 94501

  • Re: Promissory Note Arizona

    I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

    Gordon Fauth
    Fauth Law Offices
    1801 Clement Ave., Suite 101
    Alameda, CA 94501

  • Re: Promissory Note Arizona

    I am not familiar with Arizona law; but, if this Promissory Note concerns a loan between private parties (I can't see a financial institution leaving out the dollar term :), does Arizona require such loan agreements to be in writing, in one document? Even with the Promissory Note defective as a negotiable instrument because of the missing terms, depending on Arizona's laws, it together with other evidence (email, witness, etc.) might still establish an enforceable debt. You need to ask an Arizona attorney.

    Gordon Fauth
    Fauth Law Offices
    1801 Clement Ave., Suite 101
    Alameda, CA 94501

  • Re: Promissory Note Arizona

    this would be one of the more vague questions we have seen. if you want help, try giving some facts, or just speak with an attorney. i have no idea what you mean by "talk in theory," although probably the note is on a par with the question. show it to an attorney.good luck,

    James Jenkins
    Jenkins Law Center PLC
    6315 East Main Street, Suite One
    Mesa, AZ 85205