Kansas Promissory Note Templates

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A Kansas promissory note is an agreement entered into by a lender and borrower. The promissory note outlines conditions of the loan, such as interest rates, payment types, and the amount of the given balance. In Kansas, there are two types of promissory notes: secured and unsecured.

Kansas Secured Promissory Note

An unsecured promissory note has the backing of the borrower’s pledged collateral. This collateral is usually an asset, such as a home, car, or boat. If the borrower defaults on the balance, the lender has the right to place the collateral into security, which helps cover the cost of the unpaid balance.

Kansas Unsecured Promissory Note

An unsecured promissory note Kansas form usually has a greater risk than the secured version. If a borrower fails to repay the loan, it may be harder for the lender to enforce the promissory note. Even if the lender obtains a judgment from the court against the borrower’s assets, the assets may not be sufficient to cover the entire amount of the loan.

With a promissory note template for Kansas, you can create your own documents. A free Kansas promissory note is a viable way to document transactions. 

Frequently Asked Questions

In the state of Kansas, a promissory note is valid for five years after the borrower stops making payments on the loan.

To enforce a secured promissory note, a lender may repossess the asset(s) included in the promissory note. Enforcing an unsecured promissory note is more tedious. If the borrower fails to respond to a lender’s attempts to collect a payment, then the lender may enlist a collection agency or file a petition with the court.

In Idaho, the borrower records a promissory note by debiting the cash account and crediting the notes payable account.

For any income a lender generates from a promissory note, it must be reported to the IRS. The amount of taxes paid on the promissory note depends on the interest rate on the loan.

Lenders have a few options to collect from a promissory note in Kansas, including:

● Contacting the borrower. Lenders must draft a written note to the borrower requiring repayment. The letter should include a copy of the promissory note outlining the amount due.
● Hiring an attorney. If a lender’s letter is ignored, they can take legal action against the borrower. Consulting with an attorney will help lenders determine if legal recourse is an option and may advise the lender on how to proceed.
● Filing a lawsuit against the borrower. A lender’s attorney will advise them on which court to file with, which depends on the amount owed and the circumstances surrounding the case.
● Collecting through a third party. A collection agency buys the debt for a smaller sum of money and aims to retrieve a portion of the lost balance.

Depending on the terms of the purchase agreement, either the buyer or seller is responsible for paying documentary stamp taxes on promissory notes for mortgages.