Prompt Title: Loan Promissory Note

Promissory Note for 5-Year Loan

Date: [insert date]

Borrower: [insert name]

Lender: [insert name]

Principal Amount: $10,000

Interest Rate: 19%

This promissory note ("Note") is made on the date written above by the Borrower to the Lender. The Borrower promises to pay to the Lender the sum of $10,000 (the "Principal Amount") with interest thereon at the rate of 19% per annum, compounded annually, for a period of 5 years.

The first year of this loan will have no interest charged. Beginning on the second year and continuing through the end of the fifth year, interest will be charged on the outstanding principal balance.

Payments shall be due and payable in equal annual installments of principal and interest, commencing one year from the date of this Note, and continuing annually until paid in full. The final installment shall be due on the fifth anniversary of the date of this Note.

If the Borrower fails to make any payment when due, then the Lender may declare the entire Principal Amount and all accrued interest immediately due and payable without notice or demand.

The Borrower represents and warrants that the execution, delivery and performance of this Note do not conflict with any agreement, instrument or understanding to which the Borrower is a party or by which the Borrower may be bound.

This Note shall be binding upon the Borrower and the Borrower's successors and assigns, and shall inure to the benefit of the Lender and the Lender's successors and assigns.

In witness whereof, the Borrower has executed this Note as of the date first above written.

Borrower's Signature: [insert signature]

Printed Name: [insert name]

Lender's Signature: [insert signature]

Printed Name: [insert name]