DIY Legal Forms

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Line Of Credit Promissory Note

[$------]

Date:

FOR VALUE RECEIVED, [Name], hereinafter referred to as "Borrower", promises to pay to the order of [Name], hereinafter referred to as "Lender", a [State] Corporation, the principal sum of [$------], or so much thereof as may be disbursed to, or for the benefit of the Borrower by Lender in Lender's sole and absolute discretion.

It is the intent of the Borrower and Lender hereunder to create a line of credit agreement between Borrower and Lender whereby Borrower may borrow up to [$------] from Lender; provided, however, that Lender has no obligation to lend Borrower any amounts hereunder and the decision to lend such money lies in the sole and complete discretion of the Lender.

Interest & Principal. The unpaid principal of this line of credit shall bear simple interest at the rate of [--%] percent per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances made hereunder.

Interest on the unpaid balance of this Note shall accrue monthly but shall not be due and payable until such time as when the principal balance of this Note becomes due and payable. The principal balance of this Note shall be due and payable on [Date]. There shall be no penalty for early repayment of all or any part of the principal.

Security. This Note shall be secured by a mortgage hereinafter referred to as "Mortgage", upon certain property owned by the Borrower located in [County] of [State].

Default. The Borrower shall be in default of this Note on the occurrence of any of the following events:

(i) the Borrower shall fail to meet its obligation to make the required principal or interest payments hereunder.

(ii) the Borrower shall be dissolved or liquidated;

(iii) the Borrower shall make an assignment for the benefit of creditors or shall be unable to, or shall admit in writing their inability to pay their debts as they become due;

(iv) the Borrower shall commence any case, proceeding, or other action under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors, or any such action shall be commenced against the undersigned;

(v) the Borrower shall suffer a receiver to be appointed for it or for any of its property or shall suffer a garnishment, attachment, levy or execution.

Remedies. Upon default of this Note, Lender may declare the entire amount due and owing hereunder to be immediately due and payable. Lender may also use all remedies in law and in equity to enforce and collect the amount owed under this Note.

Borrower hereby waives demand, presentment, notice of dishonor, diligence in collecting, grace and notice of protest.

Signature

Borrower

Signature

Lender

This Section for Notary:

Acknowledgment

STATE OF -------)

) ss: [Date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

[Signature]

[Name of Notary Public]

My commission expires: [date]

(Seal)