Demand Notice format for Overdue Payment on Promissory Note

A promissory note is one of the various types of negotiable instruments that is used for monetary or payment related transactions. A promissory note is written on a piece of paper and serves as a legal document.

In a promissory note, one party (called 'maker') promises to pay to another party (called 'payee'), a certain sum of money, under definite terms, either at a particular date in the future or at a determinable time in the future or at any time on demand by the payee.

If under any circumstances the maker of the promissory note fails to make a payment to the payee by the time as agreed, then the payee should write a demand or collection letter to the maker without any further delay, because time is an important factor if the matter goes for deciding in a court of law.

Format of such demand/collection letter is as under. Modify it suitably as needed at your end. You should send the notice by email too, which may be very useful in a court for evidence.

FORMAT

DEMAND ON PROMISSORY NOTE

Ref: ...............
Date: .............

From
(Name of the Payee)

(Address, Phone No.)

To
(Name of the Maker)
(Address, Phone No.)
(Email id:...............)

Sub: Payment overdue - final notice
Ref: Your promissory note dated .............

Kindly refer to your promissory note dated ............. for a sum of (amount) which was to be paid to me on (date). You have failed to make a payment on the given day. Therefore, kindly be advised that I have every right to proceed for legal action against you for this wilful default by you.

However, I am willing to give you another opportunity to make good of the payment. As per the terms of the promissory note you are liable to pay interest at 18% per annum upon default in payment. You are to make the payment within the next ...days i.e. on or before (date), for the full principal money plus interest accrued on that till the date of actual payment to be made by you.

If the entire money due from you is not received by (date), then I shall be bound to proceed for legal action against you at appropriate legal forum. Please also note that as per the terms of promissory note - you are also liable to bear all costs including attorney's fees incurred by me in relation to collection of this debt from you because of your default in making payment on time.

I hope you will make necessary payments in time to avoid any further inconvenience in terms of money and time.

Sincerely,

signature

(Name of the Payee)