b.
Principal and interest due in installments. (1)
Installments of interest only with principal due at specified
date. (2) Installments of principal and interest: (a) with interest due on unpaid balance, and (b) with interest fully amortized over term of note. (3) Partially amortized installments with “balloon� payment of principal balance due at specified date. (4)
Interest-extra note with separate installments of principal and
(5)
Discount note with interest subtracted from principal balance.
(6).
Notes in a series.
interest.
5.
Define “Default and Include acceleration clause.
6.
Specify place of payment.
7.
Provide for late charges.
8.
Include prepayment provision
Either: (a) provision for prepayment penalty; or (b) provision permitting prepayment by maker. 9.
If the Note is secured: a.
b. agreement.
Refer to the existence of the separate security agreement; Do not state that note is subject to or governed by separate security
c.
Draft clause referring to or describing collateral.
d.
Include promise or power to maintain or protect collateral.
e. If desired, include provision requiring debtor to give additional collateral if initial collateral declines in value. f. Include provision specifying rights of secured party in regard to collateral on default. 10.
If desired, limit payment to specified fund or source.
11.
Include provisions waiving presentment and notice of demand.
12.
If desired, include provisions requiring payment in foreign currency.
13.
Include provisions requiring maker to pay collection costs. 49