How to Create Promissory Notes & Resolutions

A promissory note can be just a simple note between two parties, one of whom is loaning money to the other party. The note describes the amount of the loan, any interest rate to be paid and the terms of repayment. When a promissory note is written between two businesses, the loaning organization will usually write the promissory note in the form of a resolution to adopt it. The organization's leadership will then vote and resolve to adopt the promissory note or resolve not to adopt it.

Creating a Promissory Note and Resolution

• 1

  Write the words "Resolution for the Board of Directors for" at the top center of the document. If your organization is not run by a board of directors, change the name of the decision-making body to whatever is appropriate. Underneath, write "Promissory Note."

• 2

  Include the date, the name of the borrowing organization, the name of the loaning organization, the amount of money borrowed and the terms of repayment. Include any information on interest to be paid and any late charges or other penalties for defaulting on the promissory note.

• 3

  Indicate who will be held liable for the repayment of the loan if the borrower defaults on the loan, under what circumstances, if any, the agreement will be severed and what means of arbitration or legal recourse will be used if needed to enforce payment of the promissory note.

• 4

  Have the borrower(s) sign and date the document in front of a witness or a notary.