Loan Promissory Note Validity

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Summary

A promissory note can be legally binding if it includes names, signatures, loan amount, interest, repayment schedule, and default terms. In Louisiana, community property laws may affect debt division in a marital separation. Consult a local attorney for specific advice.

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I got a loan for my husband in my name. I typed up a pretty basic promissory note with the loan, balance, due date, and interest rate. Is this legally binding in case we separate? I don’t want to be responsible for the loan if we do
Hello Erica, it's important to know your location as laws vary. However, generally, a promissory note could be legally binding if it meets certain criteria:
*. Both parties' names and signatures.
*. Loan amount and interest.
*. Repayment schedule.
*. Default terms.
Please consult with a local attorney for specific advice.
Default terms?
"Default terms" refer to the conditions that will apply if the borrower fails to repay the loan as agreed. They may include late fees, legal actions, or even collateral seizure. It's crucial to include these in your promissory note for clarity and enforceability.
I live in Louisiana
In Louisiana, a properly executed promissory note is legally binding. However, in the event of a marital separation, the division of debts may be determined by community property laws. Please consult a local attorney for advice.