Promissory Note Question

[Tensore]

Your questions aren't making any sense to me. You wrote up the contract, and we can read it as well as you can, so we all know what she is legally required to do. Thus far she has done what she is legally required to do. End of story. I already posted what in my opinion you should do if 3 months (90 days) pass without a $300.00 payment.

You say that she worked for you, but that she lives in Texas and you live in North Dakota. How long did she work for you before you lent her the money? Did you ever actually pay her for her work? Did she sign any kind of employment contract? Did she live in North Dakota while working for you, but only recently quit her job with you and moved to Texas? Answers to these questions will help determine if the courts in North Dakota will have jurisdiction should you want to sue her, or if you will have to file in Texas.

How long did she work for you before you lent her the money?
- She worked for a total of three months. I gave her a loan after the first month.

Did you ever actually pay her for her work?
- Yes, she has been compensated fully for her work.

Did she sign any kind of employment contract?
- No she did not sign any employment contract.

Did she live in North Dakota while working for you, but only recently quit her job with you and moved to Texas?
- No, she always resided in Texas. The business is ecommerce, her work was all online.

I understand what the contract tells me to do if she is in default after three months. She is not in default. What I am asking is: Can I ask her to reimburse the money in lump some?

 

[anteater]

What I am asking is: Can I ask her to reimburse the money in lump some?

You can ask her for anything you wish. And she is free to respond, "No."

What you seem to have a problem understanding is that you entered into a contract with her. Until she does not comply with the contract provisions, you don't have legal recourse.

 

[Ohiogal]

North Dakota.

(Granted, it's buried quite firmly in the text)

Thank you very much. Missed that the first several times I read it.

 

[Mark Maroon]

Did she live in North Dakota while working for you, but only recently quit her job with you and moved to Texas?
- No, she always resided in Texas. The business is ecommerce, her work was all online.

I understand what the contract tells me to do if she is in default after three months. She is not in default. What I am asking is: Can I ask her to reimburse the money in lump some?

OK, as someone else responded, you can ask her to please reimburse you the full amount in a lump sum, but she can respond by telling you that she prefers to pay you as per the written agreement at $300.00 a month (or she can respond by telling you that she's not going to pay you anything and that you can sue her for all she cares).

I missed your term 7 "This Note will be construed in accordance with and governed by the laws of the State of North Dakota." Given that term you should be good to file against her in North Dakota if she does not continue to pay you as per the written agreement at $300.00 a month.

 

[Zigner]

I missed your term 7 "This Note will be construed in accordance with and governed by the laws of the State of North Dakota." Given that term you should be good to file against her in North Dakota if she does not continue to pay you as per the written agreement at $300.00 a month.

That doesn't assign jurisdiction.

 

[Ohiogal]

That doesn't assign jurisdiction.

Actually by the two signing it, they are agreeing to North Dakota having jurisdiction because another state is NOT going to follow the laws of North Dakota. it doesn't completely assign jurisdiction but it goes a long way.

 

[Tensore]

Actually by the two signing it, they are agreeing to North Dakota having jurisdiction because another state is NOT going to follow the laws of North Dakota. it doesn't completely assign jurisdiction but it goes a long way.

One more question. Does clause 4 prevail over clause 9? It is confusing but I am want to make sure that the first clause has "seniority" over the second one.

4. Notwithstanding anything to the contrary in this Note, if the Borrower defaults in the performance of any obligation under this Note, then the Lender may declare the principal amounting owing and interest due under this Note at that time to be immediately due and payable.

9. If any installment payment due under this Note is not received by Lender within 10 days of its due date, Borrower will pay a late fee of five percent of the amount of the monthly payment. The late fee will be due immediately. If any installment payment is not received by lender within 90 days of its due date, Lender may demand, in writing, that Borrower repay the entire amount of unpaid principal immediately. After receiving Lender’s demand, Borrower will pay the entire unpaid principal.

 

[Mark Maroon]

One more question. Does clause 4 prevail over clause 9? It is confusing but I am want to make sure that the first clause has "seniority" over the second one.
4. Notwithstanding anything to the contrary in this Note, if the Borrower defaults in the performance of any obligation under this Note, then the Lender may declare the principal amounting owing and interest due under this Note at that time to be immediately due and payable.
9. If any installment payment due under this Note is not received by Lender within 10 days of its due date, Borrower will pay a late fee of five percent of the amount of the monthly payment. The late fee will be due immediately. If any installment payment is not received by lender within 90 days of its due date, Lender may demand, in writing, that Borrower repay the entire amount of unpaid principal immediately. After receiving Lender’s demand, Borrower will pay the entire unpaid principal.

Personally I think that if an installment payment is more than 10 days late, then you should inform her in writing that the installment payment and late fee are due immediately. If the installment payment(s) and late fee(s) are not brought up to date after 90 days, then you should inform her in writing (certified mail with return receipt requested) that the full amount remaining, including late fees and any interest, is due immediately. Then you can file suit at will for the amount remaining, the late fees, any interest due, and court costs. If you paid her by check, then your bank can tell you what bank the funds went to - which you will want to know in case you obtain a judgment against her and need to garnish her bank account to collect the judgment.