Speaker 1: This video will guide you through reviewing a Promissory Note Agreement. Promissory Note Review is a frequently requested service on the Contracts Council platform, since both lenders and borrowers want to understand the terms before signing. If you have received a Promissory Note and need to review it, then this video is for you. Before we start, just a brief disclaimer. The following information is provided for educational purposes and in no way constitutes legal advice. For legal advice, we encourage you to consult a licensed attorney. We have also provided more information in the description, including how to find a lawyer. We will cover top considerations when reviewing a Promissory Note Agreement, key terms to find and understand in your document, costs to hire a lawyer for review. We have also added a link in the description below with information on legal fees. Now let's get started. Top Considerations for Promissory Note Agreements. Promissory Note Agreements are legally binding documents that outline the terms of a loan between a lender and a borrower. Before diving into specific terms, here are some top considerations to keep in mind. Clarity of terms. Ensure the Promissory Note clearly outlines all the terms of the loan, including the amount borrowed, interest rate, repayment schedule, and maturity date. Interest rates. Understand the interest rates being charged and whether they are fixed or variable. Ensure that these terms comply with state usury laws. Repayment schedule. Review the repayment terms, including the frequency of payments, due dates, and any grace periods for late payments. Default and penalties. Understand the conditions under which the borrower would be in default and the penalties that could apply, including late fees, increased interest rates, or acceleration of the loan. And consider hiring a lawyer. It is always recommended to hire a lawyer to help review a Promissory Note Agreement. They can ensure the document is legally compliant, help you understand industry standard terms, and coach you on negotiations. We have included a link in the description to help you. Key Terms to Understand. Promissory Note Agreements contain many important terms that you should understand. Here are some key terms to look for. One. Parties involved. Ensure that the names and details of both the lender and borrower are correctly stated. Make sure the full legal names of the entities or individuals are used. Two. Loan amount. Review the section that specifies the amount being borrowed and ensure this matches your discussions. Three. Interest rate. Check the interest rate, whether it is fixed or variable, and ensure it complies with applicable laws. Four. Repayment terms. Understand the repayment schedule, including the amount of each payment, due dates, and any grace periods. Five. Default conditions. Review the conditions under which the borrower would be in default and the corresponding consequences. Six. Prepayment penalties. Check for any penalties or fees associated with paying off the loan early. Seven. Security and collateral. If the loan is secured by collateral, ensure the collateral is accurately described and understand the implications for both parties. And eight. Dispute. Resolution. Review the methods for resolving disputes related to the promissory note, such as mediation, arbitration, or court litigation. Average costs to hire a lawyer. Hiring a lawyer to review your promissory note agreement is advisable. Contracts Council's Marketplace allows you to post your project and receive competitive bids from lawyers to compare. Based on recent data, the average cost to review a promissory note agreement is $400 on a flat fee basis. This is based on 25 recent projects from across various US states. Legal fees can vary based on the following factors. State or location. Lawyer fees may vary based on where they are located. For example, a lawyer in New York City will likely have a higher rate than a lawyer in Tulsa, Oklahoma. Length of contract. Given lawyers traditionally bill by the hour, a longer contract with more pages will require more of their time, which can make the legal costs higher. Complexity of terms. If there are complicated terms in the agreement, it can increase legal fees since it will require the lawyer to spend more time working on the project. Service required. You can hire lawyers for different services. If you simply need the contract reviewed and explained, this will be a lower fee than also needing the contract redlined and negotiated. Reviewing a promissory note agreement is crucial in ensuring you understand all the terms of the loan and protect your rights accordingly. If you need help from an experienced lawyer, feel free to search Contracts Council or visit ContractsCouncil.com and post a job to get quotes from lawyers to help you. Thanks for watching. Yeah.