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Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 23812
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
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If I am lending monety to my sons corporation us it enough

Resolved Question:

If I am lending monety to my son's corporation us it enough to put the corporation number on the promissory note?
Submitted: 4 years ago.
Category: Business Law
Expert:  Law Pro replied 4 years ago.

It all depends - if you are loaning him the money personally and want him personally responsible to repay the debt or your going to make the loan to the corporation itself.

 

Do you know the difference as between such - one way makes him personally responsible regardless if the corporation goes bankruptcy - the other relieves him of any personal liability if the corporation goes under.

Customer: replied 4 years ago.
I would prefer to lend him the money personally as I would like it repaid. I will also alter my will so that any indebtedness of my children concerning me is paid off before the estate is divided up. Hopefully that will be many years from now!!!
Expert:  Law Pro replied 4 years ago.

OK, I just wanted to make sure you knew the difference. It seemed by your question that you might be lending the money to the corporation.

 

Here is a quick promissory note form that you can modify and add or subtract provisions:

 

Promissory Note

 

On this date of [DATE], in return for valuable consideration received, the undersigned borrower[s] jointly and severally promise to pay to [LENDER'S NAME], the "Lender", the sum of $[DOLLARS] Dollars, together with interest thereon at the rate of [RATE] percent ([RATE]%) per annum.

 

Select from the following provisions, as desired]

 

Terms of Repayment: This loan shall be repaid under the following terms: [describe terms]. All payments shall be first applied to interest and the balance to principal.

 

Terms of Repayment (Periodic Payment): Starting on [DATE] and continuing until the principal balance of this Note and any accrued interest have been repaid in full, on the [DATE] day of each month the borrowers shall pay the amount of $[AMOUNT]. All payments shall be first applied to interest and the balance to principal.

 

Terms of Repayment (Balloon): Starting on [DATE] and continuing therafter from month to month until the date of [DATE2], the borrowers shall make payments of interest only in the amount of $[AMOUNT]. On [DATE2], final payment is due in the amount of $[BALANCE].

 

Payable On Demand: The entire unpaid principal and accrued interest thereon, if any, shall become immediately due and payable on demand by the holder of this Note.

 

Late Fees: In the event that a payment due under this Note is not made within ten (10) days of the time set forth herein, the Borrower shall pay an additional late fee in the amount of $[AMOUNT].

 

Late Fees: In the event that a payment due under this Note is not made within ten (10) days of the time set forth herein, the Borrower shall pay an additional late fee in the amount of [PERCENT] percent of said payment.Place of Payment - all payments due under this note shall be made at [DESIGNATED LOCATION], or at such other place as the holder of this Note may designate in writing.Prepayment - This Note may be prepaid in whole or in part at any time without premium or penalty. All prepayments shall first be applied to interest, and then to principal payments in the order of their maturity.

Default - In the event of default, the borrower[s] agree to pay all costs and expenses incurred by the Lender, including all reasonable attorney fees (including both hourly and contingent attorney fees as permitted by law) for the collection of this Note upon default, and including reasonable collection charges (including, where consistent with industry practices, a collection charge set as a percentage of the outstanding balance of this Note) should collection be referred to a collection agency.

Acceleration of Debt - In the event that the borrower[s] fail to make any payment due under the terms of this Note, or breach any condition relating to any security, security agreement, note, mortgage or lien granted as collateral security for this Note, seeks relief under the Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.Joint and Several Liability - All borrowers identified in this Note shall be jointly and severally liable for any debts secured by this Note.Modification - No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by both parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.Transfer of the Note - The borrowers hereby waive any notice of the transfer of this Note by the Lender or by any subsequent holder of this Note, agree to remain bound by the terms of this Note subsequent to any transfer, and agree that the terms of this Note may be fully enforced by any subsequent holder of this Note.Severability of Provisions - In the event that any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.Choice of Law - All terms and conditions of this Note shall be interpreted under the laws of [JURISDICTION].


Signed Under Penalty of Perjury, this [DATE] day of [MONTH], [YEAR],

_______________________________________
Borrower(s)
[Note- each borrower should sign separately.]

Signed in the presence of:

_______________________________________
Witness

Law Pro, Attorney
Category: Business Law
Satisfied Customers: 23812
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Law Pro and 3 other Business Law Specialists are ready to help you

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