Oklahoma Promissory Note
Last Updated:
An Oklahoma Promissory Note is a fancy IOU, that's what we're talking about. It's a pact between two buddies, where one lends cash to the other and promises a payback. All the must-know details, like when to repay and interest bits, are in black and white.
What is the Usury Rate for Oklahoma?
Think of a usury rate as the legal cap on how much interest can be tacked onto a loan. If a lender gets too eager and goes above this limit, they're stepping into "usury" land—that's off-limits and flies in the face of the law. These rates aren't a one-size-fits-all; they change from state to state. So, it's a good idea to know the ground rules in your specific neck of the woods. Getting the lowdown on the usury rate, you're making sure you borrow smart and sidestep potentially sticky predicaments. It's surely a handy little digit to jot down if you're thinking about getting a business loan.
For Oklahoma, the legal rate of interest in Oklahoma is 6% unless otherwise agreed to in writing. The maximum amount of interest chargeable in Oklahoma is 10%. (Okla. Stat. tit. 15, §266)
Thank you for downloading!
How would you rate your free form?
Read on to learn more about Oklahoma Promissory Notes, including:
What's included in a Oklahoma Promissory Note?
Here are some key components that are typically included in an Oklahoma 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 cash figure you're lending to the business. This portion is vital since it guarantees crisp understanding and safeguards for everyone involved. To wrap up this provision, simply fill in the empty slot with the loan digits. Plus, keep an eye on "Exhibit A" – the promissory note that serves as the written pledge and solid proof of the loan.
To sum it up—this crucial component sheds light on the funds you're putting on the line, laying a transparent groundwork for your promissory note pact.
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 outlines the final steps of your promissory note agreement. Closing is where you pinpoint the date the transaction wraps up. You and your counterpart get to decide this date together—it doesn't need to be the day you put ink on the contract.
Delivery paints the picture of the trade-off: the borrower hands over the loan sum to the company and, as a thank you, the company delivers them the fully-done promissory note. This note cements the borrower's promise to pay back the loan. This give and take between both sides promotes openness 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 holds the company's affirmations about its honesty with key specifics. Legally, they need to stick to facts here to steer clear of possible legal snags. Throw in necessary bits about the company's money scene, how they roll, or all things legal. It's an absolute must for building faith and keeping things crystal clear in your agreement.
a. Organization, Good Standing and Qualification
The Organization, Good Standing, and Qualification bit validates the company's lawful standing. Do include the state where the company waves its flag. This ensures operations sail smoothly and fosters trust amongst all parties.
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 bit is all about rubber-stamping the company's legal clout to carry out this agreement and meet its commitments. It's kind of saying, "Hey, we've got the legal go-ahead for this arrangement." It's a pivotal piece in creating a trustful environment and keeping things on the right side of the law. So, remember to have this clause in place and make sure it's 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 bit ensures all of the company's key players have given their green light and validates the note's legality. It's a super important slice of your contract that double-checks every needed corporate move has been made. This clause fortifies both parties and lays a rock-solid groundwork for your agreement.
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 bit simply means: "Hey, our company isn't consciously bending any rules that could backfire for our business." Slipping in this provision is like a comforting pat on the back, telling everyone involved that your company's deeply committed to playing by the law's playbook.
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 of the agreement says loud and clear: "This loan is strictly for supporting the business, no personal errands allowed." Including this pleasure bit in your agreement adds a layer of openness and safeguards your trust score with lenders.
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, you can have a promissory note without a mortgage hitched to it. See, a promissory note's like the rulebook of a loan, while a mortgage ties that loan to something valuable like property. What's cool is promissory notes play well with both secured and unsecured loans. So, a solo promissory note is totally doable—you just get yourself an unsecured loan. But, here's the thing: You'll usually find mortgages tag-teaming with promissory notes since they detail the payback plan and include the borrower's commitment to repay the loan.
How do you collect from a promissory note?
When it's time to gather up what's owed from a promissory note, first, tally up the grand total, interest and fees included. Reach out to the borrower with a friendly written reminder. If that doesn't do the trick, legal action could be your next move. Make sure you've got all your paperwork in a row and tap a legal guru for advice—after all, every locality dances to its own legal tune. And remember, no need to turn into a harassing creditor—it might backfire legally. A quick chat with your lawyer can steer you clear of any blunders.