An Oklahoma promissory note is a written agreement in which an individual agrees to pay back money borrowed from another individual or entity. This document is more formal than an “IOU” and has more flexibility than a traditional loan agreement. A promissory note allows borrowers to explore funding options outside those structured by financial institutions.
The form should contain the information of both lender and borrower, the dollar amount to be lent, how much interest will be paid, and how often the borrower will be required to make payments. The note also should include provisions about what should happen in the event that the payment terms are not met, thereby protecting the lender.
Secured Promissory Note – This document details repayment terms on a loan where the borrower puts up personal assets as collateral.
Unsecured Promissory Note – An uncollateralized financial repayment agreement.