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A promissory note is a written contract recording a transaction in which money is borrowed from one party and given to another. Usually, it lists all the details of the transaction including the terms of the loan, the rate of interest, how the money should be paid back, where the payments have to be done etc. The borrower then signs it and hands it over to the lender and keeps a copy of it to himself / herself. This article provides answers to some of the most commonly asked questions about issues related to this. I have a notarized promissory note stating that a relative owes me money. In case she doesn’t pay me back and I take her to court, would I need to hire a lawyer?
It is advisable to hire a lawyer to represent you. If you sue the defaulter you might be able to not only recover the amount owed to you but also the fees paid to the attorney. An employer who is insisting on applicants’ signing promissory notes stating they have to pay the employer for a four week training course that is a prerequisite to being hired. The amount has to be paid if the applicants are not hired or find work elsewhere. Does the employer have a right to insist on this?
Applicants are bound to honor the note if signed by them. However, it is not fair since getting hired or not is out of their control. Applicants may want to report this to the Attorney General’s office since this appears to be a case of fraud. It may be a case where the employer is selling training sessions. I have to undergo a bariatric surgery and am funding it myself. Since I don’t have property to lien and have weak credit, can a lawyer help me get a promissory note through the hospital that would guarantee payment on my part? This might convince the hospital to work with me.
The billing department of the hospital has to be able to take the promissory note for your payment. But, it is akin to a hospital’s right to collect on your payment, since it has the right to sell the bill to a debt collector in the same way it can sell a promissory note. Basically, as long as you don’t offer some kind of a collateral as a security to your note, it will be treated just like a piece of paper to the hospital. Hence, if they don’t wish to go ahead with the surgery, an uncollateralized note will do little to enhance your credit position. It is in the domain of state law that governs how a promissory note is to be signed. The laws governing promissory notes vary from state to state. Some states need witness to the promissory notes; some require to be notarized, and still others do not require either. Some promissory notes consider personal guarantees as valid. In case the borrower of money is a corporation / individual with a weak financial base, another person may be needed to sign the guarantee promising that the loaned amount will be paid off by them in case of a default by the borrower. In that case, they are bound by law to honor the note in just the way the original borrower would be. If you need to know further about such notes you may ask a business lawyer.
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