GoDocs offer the below promissory note selections:
- An on‑demand promissory note, and
- A promissory note with a set maturity date.
An on‑demand promissory note is a loan instrument where the lender may demand repayment of the entire outstanding balance at any time. There is no fixed maturity date. Instead, the note states that the principal, along with all accrued interest, becomes due whenever the lender issues a formal demand for repayment.
A set‑date promissory note contains a fixed date on which all unpaid principal and interest are due. Until that maturity date, the borrower typically follows an agreed‑upon payment schedule.
The difference will be in the Defined Terms of the Promissory Note:
and in Section C.2. (or thereabouts) of C. Payments section of the note:
If selecting to include the Demand Note GoDocs offers the two settings below:
-png-4.png?width=349&height=155&name=image%20(5)-png-4.png)
Difference in the definition of the Maturity Date:
On-Demand Note (No Set Maturity Date)
- The lender may demand repayment at any time, for any reason, with no advance schedule.
- There is no future date built into the contract when the borrower must repay unless the lender demands it.
- Repayment is triggered only when the lender issues a formal demand.
Demand Note WITH a Stated Maturity Date
- It is technically a demand note, because the lender can demand repayment at any time.
- But it also contains a scheduled maturity date (e.g. March 6, 2029).