Make a California Promissory Note

Create a California Promissory Note with our customizable template!

What Is a California Promissory Note?

A California promissory note is a written document that may be legally binding once it is properly executed. The purpose of the document is to prove the existence of a loan that was provided to the borrower by the lender. California promissory notes are either secured or unsecured.

• When a promissory noteis secured, the lender is given the right to take a specific piece of property, known as collateral, to act as payment for all or part of the loan if the borrower defaults on the payment.
• When apromissory noteis unsecured, the lender cannot collect collateral for non-payment.

Because promissory notes are a form of contract, they are regulated by California Civil Code. If the agreement between the borrower and lender includes a loan of more than $500 or if it will take the borrower more than a year to repay (regardless of the amount), the contract to repay (the promissory) note must be in writing according to California Civil Code §1624(a).