The Illinois promissory note templates are designed for two parties consisting of a lender and a borrower. The transaction consists of a lender loaning money to a borrower and collecting the loaned amount back plus interest over time. The agreement helps ensure the deal is legal and both parties are clear on the terms and conditions of the deal.
Usury Rate – The general rate limit is 9%
Laws – 815 Ill. Comp. Stat 205/4
Types (2)
Secured Promissory Note – If the borrower defaults on the balance, the lender is granted to take a predetermined possession of the borrower, such as a home or vehicle, to cover the cost of the remaining balance.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Unsecured Promissory Note – This version does not include security. If the borrower defaults, the lender will have no immediate way to recover his or her lost money. To help guard against this potential problem, the lender should know the borrower personally and have the utmost trust in him or her.
Download: Adobe PDF, MS Word (.docx), OpenDocument
Usury Rate
In Illinois, the legal interest rate when not otherwise specified is 5% per year. 815 ILCS 205/1 Parties to a loan transaction in Illinois may not agree to an interest rate higher than 9% per year according to Illinois law. 815 ILCS 205/4
(Video) What is an Illinois Promissory Note?
How to Write
Step 1 – Download the Illinois Note Form – Submit the following:
- The start date of the document in dd/m/yy format
- Borrower's name
- Borrower's mailing address
- AND
- Lender's name
- Lender's mailing address
- AND
- Provide the principal sum of the promissory note
- Provide the amount of the unpaid annual percentage rate on the note
Step 2 –Payments –
- Submit a due date for the full balance of the note (including accrued interest and late fees)
Installments
Check the box that would best indicate an agreed method of payment – Enter the total amount that must be paid by the date it's due
- In the event the borrower shall pay in installments, check the "installments" box. Submit the principal amount required to be paid by the due date
- Check the box establishing frequency of payments to be made
- Submit an amount fees required for late payments
Step 3 – Security –
- If this will be an unsecured loan, check the applicable box
- If the note shall be "secured," submit any information regarding property to be retained until the note is paid in full
Step 4 –Titled Sections and Subsections –
- Interest due in the Event of Default
- Allocation of Payments
- Prepayment
- Acceleration (and 6A. – Security)
- Attorney's Fees and Costs
- Waiver of Presentments
- Non-Waiver
- Severability
- Integration
- Conflicting Terms
- Notice
- Co-Signer – Check the box that applies – if there will be a co-signer submit their name
- Execution
- Governing Law – (Illinois state laws)
Step 5 –Signatures – Apply signatures in the presence of a witness:
- Lender's signature
- Date the form – mm/dd/yyyy
- Lender's printed name
- AND
- Borrower's signature
- Date of signature – mm/dd/yyyy
- Borrower's printed name
- AND
- If there shall be a co-signer, enter the name of the co-signer
- Date of co-signer's signature (mm/dd/yyyy )
- Co-signer's printed name
- AND
- Witness' signature
- Date of the signature – mm/dd/yyyy
- Witness' printed name
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Source: https://eforms.com/promissory-note/il/
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