A Virginia promissory note is a tool that a lending party can use to collect on a debt from the obliged party. It serves as an agreement to pay the debt, and the lending party can enforce the payment within the statute of limitations.
Whether you’re looking for a secured or unsecured promissory note Virginia form, you can use a free template. Then, you can make sure it has all of the information that both parties need.
Virginia Secured Promissory Note
A secured promissory note in Virginia is suitable for recording payments that are due for various things. The promissory note Virginia form can cover health care insurance or the balance for one or more loans.
Assigning a secured promissory note can be smart when the party obliged to pay has a lower credit score. It will tie an asset to the note, and the lending party can collect on the asset if there is a failure to pay.
While there are some restrictions on how a Virginia promissory note can be assigned, a free Virginia promissory note is useful for collecting various debts.
Virginia Unsecured Promissory Note
An unsecured promissory note is a useful tool for the same types of debt as a secured promissory note. In Virginia, it faces many of the same restrictions as a secured note. However, the biggest difference is that there is no asset to prove that the party in debt will pay.
This type of promissory note is best for a party that has a good credit score and a history of paying on time. The lending party will not be able to seize an asset after a failure to pay.
Also, the lending party is not entitled to any surplus payments from the obliged party. The obliged party is also not liable for any deficiency in the payment amount.
If you need a free Virginia promissory note, you may have some questions about how they work. Consider these common concerns so that you can choose the proper promissory note template Virginia allows.