New Hampshire Promissory Note
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A New Hampshire Promissory Note is like a fancy IOU. It's a friendly agreement between two pals, with one lending money and the other vowing to pay it back. The document spells out all the important bits, like when payments are due and the interest fees involved.
What is the Usury Rate for New Hampshire?
In a nutshell, a usury rate is the highest legal interest chargeable on a loan. Charging beyond this rate is labeled "usury," and that's a no-no. Keep in mind, these rates differ from state to state, so check your local rules. Being wise about usury rates helps you borrow smartly and dodge any risky situations. So, if you're eyeing a business loan, it's a handy figure to know.
For New Hampshire, 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. (N.H. Rev. Stat. Ann. § 336:1)
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Read on to learn more about New Hampshire Promissory Notes, including:
What's included in a New Hampshire Promissory Note?
Here are some key components that are typically included in a New Hampshire Promissory Note:
- Amount and Terms of the Loan
- Closing and Delivery
- Representations, Warranties the Company
- Organization, Good Standing and Qualification
- Corporate Power
- Authorization
- Compliance with Laws
- Use of Proceeds
1. Amount and Terms of the Loan
"The Loan" spotlights the exact pile of cash you're lending to the business. This piece is critical as it ensures crystal-clear understanding and safeguarding for both sides. To wrap this up, scribble the loan amount in the open field. Plus, don't overlook "Exhibit A"—that’s your promissory note, serving as the written pledge and proof of the loan.
In a nutshell—this gold-star clause pinpoints the funds you're on the hook for, laying a solid base for your promissory note agreement.
The Loan. Subject to the terms of this Agreement, Purchaser agrees to lend to the Company at the Closing $_________ (“Loan Amount”) against the issuance and delivery by the Company of a promissory note for such amount, attached as EXHIBIT A (“Note”).
2. Closing and Delivery
The CLOSING AND DELIVERY clause nails down the last steps of your promissory note deal. At Closing, you'll pinpoint when the transaction wraps up. Feel free to decide on this date together—it doesn't have to be the contract's creation date.
Delivery chats about the trade-off: the borrower forks over the loan amount to the company while the company hands over a polished promissory note, outlining the borrower's duty to pay it back. This two-way street guarantees a clear-cut approach and dedication from everyone involved.
CLOSING AND DELIVERY
Closing. The closing of the sale and purchase of the Notes (the “Closing”) will be held on the Effective Date, or at such other time as the Company and Purchasers may mutually agree (such date is referred to as the “Closing Date”).
Delivery. At the Closing (i) Purchaser will deliver to the Company a check or wire transfer funds in the amount of the Loan Amount; and (ii) the Company will issue and deliver to Purchaser a Note in favor of Purchaser payable in the principal amount of Purchaser’s Loan Amount.
3. Representation, Warranties The Company
This part captures the company's honesty pledge about important specifics. They're legally committed to keeping it real here to side-step any legal snags. Don't leave out vital intel about the company's financial health, how it runs the show, or any legal tidbits. Staying transparent and trustworthy in your agreement is the golden rule here.
a. Organization, Good Standing and Qualification
The Organization, Good Standing, and Qualification segment gives a thumbs-up to the company's legal stance. Jot down the state where the business is set up to keep things running like a well-oiled machine and cement trust between all players.
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of [State]. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.
b. Corporate Power
The Corporate Power portion gives a high-five to the company's legal capacity to put this deal into action and meet its promises. In layman's terms: "Our business can legally make this happen." It's key for building trust and abiding by the law. So, double-check this part is present and crystal clear.
Corporate Power. The Company has all requisite corporate power to execute and deliver this Agreement, to issue the Note and to carry out and perform its obligations under the terms of the Note.
c. Authorization
The Authorization chunk double-checks the company's go-ahead from stakeholders and the note's legal side. It's a must-have in your contract, confirming all required business moves are made. This nugget keeps both pals in the agreement safe, laying a rock-solid base for your deal.
Authorization. All corporate action has been taken on the part of the Company, its directors and its stockholders necessary for the authorization of the Note and the execution, delivery and performance of all obligations of the Company under the Note. The Note, when executed and delivered by the Company, will constitute valid and binding obligations of the Company enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors.
d. Compliance with Laws
The Compliance with Laws segment affirms your business isn't consciously bending rules that could land it in hot water. Plugging in this provision gives everyone a comforting pat on the back, reassuring them of your company's dedication to staying on the right side of the law.
Compliance with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency in respect of the conduct of its business or the ownership of its properties, which violation would materially and adversely affect the business, assets, liabilities, financial condition or operations of the Company.
e. Use of Proceeds
The Use of Proceeds part underlines that the loan is strictly for business shenanigans, not your personal splurges. It's crucial to keep things clear as a bell, and keep your standing squeaky-clean with those lending you the moolah.
Use of Proceeds. The Company will use the proceeds of the Note for the operations of its business, and not for any personal, family or household purpose.
Can a promissory note be used without a mortgage?
Absolutely, a promissory note can fly solo without a mortgage. Picture a promissory note as a legal playbook that lays down the loan rules, while a mortgage is like a safety net for the loan, put in place to cushion some pretty valuable stuff (hello, real estate!). Promissory notes are the team players, ready to mingle in both secured and unsecured loan territory. So yeah, it's A-OK for a promissory note to venture out without a mortgage, making it an unsecured loan. But, on the flip side, it's pretty tough to find a mortgage without its trusty sidekick—the promissory note. Why? Because it spells out the entire repayment game plan and packs the borrower's word to pay back that sweet loan.
How do you collect from a promissory note?
To cash in on a promissory note, tally up the total due, with an eye on interest and extra charges. Reach out to the debtor in a written note. If the bucks aren't coming in, thinking about playing the legal card could be wise. Make sure you've rounded up all necessary paperwork, and pop into a legal guru's office because every location has its own legal path to follow. Steer away from pestering the debtor since it could cross legal lines. Always give a lawyer a shout to sidestep any potential faux pas.