Chapter 14 Forms

****************************************Form: CH14_01****************************************AUTHORIZATION OF LOAN AT SPECIFIC TERMS

It was announced that the officers of the corporation have received a loan commitment from the following bank, trust company, or other financial institution on the following terms:

Name of Lender: ____[name of bank or other financial institution]____Loan Amount: $____[principal amount of the loan -- amount you plan to borrow, not including interest]___Terms of the Loan:___[state the terms of the loan, including rate of interest, the full repayment period, number and amount of installment payments and date, and amount of final payment if different from other payments]___

It was resolved that the proposed terms of the loan are fair and reasonable to the corporation and that it would be in the best interests of the corporation to borrow the funds on the terms stated above.

It was further resolved that the following officers are authorized to execute the notes and documents on behalf of the corporation necessary to effect the above loan:

Officer NameTitle________________________________________________________________________________________________________________________

****************************************Form: CH14_02****************************************AUTHORIZATION OF MAXIMUM LOAN ON GENERAL TERMSIt was resolved that it was in the best interests of the corporation to borrow up to the following amount of funds from the following bank, trust company or other financial institution:

Name of Lender: ____[name of bank]____Loan Amount: $____[principal amount of the loan not including interest]____

The following officers were authorized to sign the appropriate notes and documents on behalf of the corporation necessary to borrow an amount that does not exceed the amount noted above on terms reasonable to the corporation:

Officer NameTitle ________________________________________________________________________________________________________________________

****************************************Form: CH14_03****************************************UNLIMITED AUTHORIZATION OF LOANS FOR BUSINESS NEEDS

It was resolved that the following officers of the corporation are authorized to borrow on behalf of the corporation from one or more banks or other financial institutions such amounts as they decide are reasonably necessary to meet the needs of the business of the corporation:

Officer NameTitle________________________________________________________________________________________________________________________

****************************************Form: CH14_04****************************************AUTHORIZATION OF LINE OF CREDIT

It was resolved that it would be in the best interests of the corporation to obtain a line of credit for borrowing funds from ____[name of bank]____.

The following officers were authorized to complete all necessary forms, documents, and notes, and to pledge as security corporate assets, necessary to obtain and utilize the line of credit:

Officer NameTitle ________________________________________________________________________________________________________________________

[OPTIONAL: It was further decided that the authority granted by this resolution be limited and that the officers not be allowed to borrow funds against the line of credit that exceed __(credit line limit and period)__.]

****************************************Form: CH14_05****************************************AUTHORIZATION OF LINE OF CREDIT WITH CAP ON EACH TRANSACTION

It was resolved that it would be in the best interests of the corporation to obtain a line of credit for the borrowing of funds from ____[name of bank]____.

The following officers were authorized to complete all necessary forms, documents, and notes necessary to obtain and utilize the line of credit to allow borrowing by the corporation in an aggregate amount that does not exceed $___[credit line limit: specify total borrowing limit and period if you wish -- for example, "$50,000 per fiscal year"]___.

Officer NameTitle ________________________________________________________________________________________________________________________

It was further resolved that the amount borrowed under the line of credit in one transaction shall not exceed ___[maximum amount that can be borrowed against the line of credit in one transaction]___ unless any excess amount is specifically approved by further resolution of the board of directors.

****************************************Form: CH14_06****************************************AUTHORIZATION OF LOAN TERMS SECURED BY CORPORATE PROPERTY

It was resolved that the following officers of the corporation are authorized to borrow the sum of $___[principal amount of loan]___ on behalf of the corporation from _____[name of bank]_____:

Officer NameTitle ________________________________________________________________________________________________________________________

The above officers are authorized to execute a promissory note for the above amount under the following terms together with a mortgage, deed of trust, or security agreement and other documents necessary to secure payment of the note with the pledge of the following property:

Property Used as Security for Note:___[insert a description of the property]___

Terms of Note:___[specify loan terms or refer to and attach promissory note]___

****************************************Form: CH14_07****************************************RESOLUTION APPROVING LOAN TO CORPORATION

It was resolved that it is in the best interests of the corporation to borrow the following amount(s) from the following individuals:

AmountName of Lender$__________________________________________$__________________________________________

The terms of ___["each" or "the"]___ loan were included in a promissory note presented for approval at the meeting. The board determined that these terms were commercially reasonable. The board also determined that corporate earnings should be sufficient to pay back the loan(s) to the lender(s) according to the terms in the note(s) and that such repayment would not jeopardize the financial status of the corporation.

Therefore, the board approved the terms of ___["each" or "the"]___ note and directed the treasurer to sign ___["each" or "the"]___ note on behalf of the corporation. The secretary was directed to attach a copy of ___["each" or "the"]___ note, signed by the treasurer, to this resolution and to place the resolution and attachment(s) in the corporate records book.

****************************************Form: CH14_08Promissory Note: Installment Payments of Principal and Interest (Amortized Loan)****************************************PROMISSORY NOTEInstallment Payments of Principal and Interest (Amortized Loan)

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

Principal and interest shall be paid in equal installments of $____[amount of each payment]____, beginning on ____[date of first payment]____, 20__, and continuing on ____[day for ongoing payment, for example, "the fifteenth day of each month"]____ until the principal and interest are paid in full. Each payment on this note shall be applied first to accrued but unpaid interest and the remainder shall be applied to unpaid principal.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.If any installment payment due under this note is not received by the noteholder within __[number of days]__ of its due date, the entire amount of unpaid principal and accrued but unpaid interest due under this note shall, at the option of the noteholder, become immediately due and payable without prior notice from the noteholder to the borrower. In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ___[name of corporation]___

****************************************Form: CH14_09Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) Secured by Corporate Property****************************************PROMISSORY NOTEInstallment Payments of Principal and Interest (Amortized Loan) Secured by Corporate Property

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

Principal and interest shall be paid in equal installments of $____[amount of each payment]____, beginning on ____[date of first payment]____, 20__, and continuing on ____[day for ongoing payment, for example, "the fifteenth day of each month"]____ until the principal and interest are paid in full. Each payment on this note shall be applied first to accrued but unpaid interest and the remainder shall be applied to unpaid principal.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

If any installment payment due under this note is not received by the noteholder within __[number of days]__ of its due date, the entire amount of unpaid principal and accrued but unpaid interest due under this note shall, at the option of the noteholder, become immediately due and payable without prior notice from the noteholder to the borrower. In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Borrower agrees that until such time as the principal and interest owed under this note are paid in full, the note shall be secured by the following described mortgage, deed of trust, or security agreement: ___[describe security agreement or deed of trust or mortgage used to pledge security of the property, including a description of the property]___

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on behalf of ____[name of corporation]____

****************************************Form: CH14_10Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) with Balloon Payment****************************************PROMISSORY NOTEInstallment Payments of Principal and Interest (Amortized Loan) with Balloon Payment

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

Principal and interest shall be paid in equal installments of $____[amount of each payment]____, beginning ____[date of first payment]____, 20__, and continuing on the ____[day for ongoing payment, for example, "the fifteenth day of each month"]____, except that a final payment of the remaining unpaid principal amount, together with all accrued but unpaid interest, shall be paid on ____[date of final (balloon) payment]____. Each payment on this note shall be applied first to accrued but unpaid interest and the remainder shall be applied to unpaid principal.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

If any installment payment due under this note is not received by the noteholder within ___[number of days]___ of its due date, the entire amount of unpaid principal and accrued but unpaid interest due under this note, shall, at the option of the noteholder, become immediately due and payable without prior notice from the noteholder to the borrower. In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ____[name of corporation]____

****************************************Form: CH14_11Promissory Note: Periodic Payments of Principal and Interest with Lump Sum Principal Payment****************************************PROMISSORY NOTEPeriodic Payments of Interest with Lump Sum Principal Payment

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

Interest shall be paid in equal installments of ___[amount of each interest payment]___, beginning on ____[date of first payment]____, 20__, and continuing on the ____[day for ongoing payment, for example, "the fifteenth day of each month"]____ until ____[ending date of loan period]____, on which date the entire principal amount, together with total accrued but unpaid interest, shall be paid by the borrower.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

If any installment payment due under this note is not received by the noteholder within ___[number of days]___ of its due date, the entire amount of unpaid principal and accrued but unpaid interest due under this note shall, at the option of the noteholder, become immediately due and payable without prior notice from the noteholder to the borrower. In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ____[name of corporation]____

****************************************Form: CH14_12Promissory Note: Lump Sum Payment of Principal and Interest at Specified Date****************************************PROMISSORY NOTELump Sum Payment of Principal and Interest at Specified Date

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

The entire principal amount of the loan, together with total accrued but unpaid interest, shall be paid by the borrower on ____[due date for payment of all principal and interest]____. Any payment made by the borrower prior to the due date specified above shall be applied first to accrued but unpaid interest and the remainder shall be applied to unpaid principal.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ____[name of corporation]____

****************************************Form: CH14_13Promissory Note: Lump Sum Payment of Principal and Interest on Demand by Noteholder****************************************PROMISSORY NOTELump Sum Payment of Principal and Interest on Demand by Noteholder

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

The entire principal amount of the loan, together with accrued but unpaid interest, shall be paid within ___[period, for example "30 days"]___ of receipt by the corporation of a demand for repayment by the noteholder. A demand for repayment by the noteholder shall be made in writing and shall be delivered or mailed to the borrower at the following address: ____[address of principal office of corporation]____. If demand for repayment is mailed, it shall be considered received by the borrower on the third business day after the date when it was deposited in the U.S. mail as registered or certified mail.

Any payment made by the borrower prior to the due date specified above shall be applied first to accrued but unpaid interest and the remainder shall be applied to unpaid principal.

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ____[name of corporation]____

****************************************Form: CH14_14Promissory Note: Variable Schedule of Payments of Principal and Interest****************************************PROMISSORY NOTEVariable Schedule of Payments of Principal and Interest

For Value Received, ____[name of corporation]____, the borrower, promises to pay to the order of ____[name of shareholder or other individual lender]____, the noteholder, the principal amount of $____[principal amount of loan]____, together with simple interest on the unpaid principal balance from the date of this note until the date this note is paid in full, at the annual rate of ____[annual rate of interest]____%. Payments shall be made at ____[address of lender]____.

Principal and interest shall be paid as follows:[include schedule of payments here. For the last payment, you can insert the following:

The borrower shall make a final payment in the amount of all remaining principal and all accrued but unpaid interest on ___[date]___.]

This note may be prepaid by the borrower in whole or in part at any time without penalty. This note is not assumable without the written consent of the noteholder, which consent shall not be unreasonably withheld. This note is nontransferable by the noteholder.

If any installment payment due under this note is not received by the noteholder within ___[number of days]___ of its due date, the entire amount of unpaid principal and accrued but unpaid interest of the loan shall, at the option of the noteholder, become immediately due and payable without prior notice by the noteholder to the borrower. In the event of a default, the borrower shall be responsible for the costs of collection, including, in the event of a lawsuit to collect on this note, the noteholder's reasonable attorneys' fees as determined by a court hearing the lawsuit.

Date of Signing: _____________________Name of Borrower: ____[name of corporation]____Address of Borrower: ____[address of principal office of corporation]____City or County and State Where Signed: __________Signature of Borrower: ___[signature of treasurer]___, Treasurer on Behalf of ____[name of corporation]____