Note and Security Agreement
NOTE AND SECURITY AGREEMENT
THIS NOTE, Made this _____ day of _____, ______
RECITALS
I. ______, of [address] ______("the Borrower"), all sums due and owing, after deduction of $______already paid, for legal fees and costs of litigation in the legal action ______, in ______County Family Court File No. ______. Said payments shall be made in equal installments of $____ weekly and shall be paid by a wage assignment directed to ______’s employer. The exact legal fees and costs to be incurred are, as yet, undetermined, as this case in currently being litigated. The amount owed for fees and costs through ______, 20___ is $ ______in fees and costs ($ ). If the case is litigated on ______, as scheduled, an additional ______Thousand Dollars in legal fees will be incurred. If a written Final Argument is ordered to be drafted and filed, an additional ______Thousand Dollars in legal fees and costs will be incurred. John Lowery gives this Note as security for the debt incurred and accruing. [Optional] Jeanne M Hannah agrees to discount the amount owing by twenty percent (20%) at any time that ______is able to borrow the money to pay the account in full.
II. This Note and Security Agreement is secured by future earnings of ______, any ______owned by ______in the future, including real estate which he may own as a co-tenant with ______, [“Co-Signer”] and personal property owned by him. Both Borrower and Co-Signer agree to execute a contractual lien against any real estate owned by him/her/ them, including after-acquired real estate, as additional security for this Note.
III. The Borrower, acknowledges that the services rendered by Lender in ______County Family Court File No. ______constitute adequate consideration to support the agreements made in this Note and that this note is given in the absence of fraud, duress or mistake.
TERMS OF NOTE
1. Amount of Note: The principal balance on this Note is ______Thousand ______and __/100 in fees and costs ($______7) on [date] ______and is still accruing for fees and costs to be incurred on May 10, 200 and thereafter.
2. Interest: Interest shall accrue at a rate of seven (7%) percent annually to be calculated on a simple interest basis considering a 365 day year.
3. Method of Payment: The Borrower shall pay to ______("Lender") all sums incurred, (which shall include the retainer already paid), in equal installments of $100 weekly and shall be paid by a wage assignment directed to his employer, a copy of which is attached hereto and all terms of which are incorporated herein by reference.
4. Late Charges: A late charge of $10.00 will be made for each late payment. [A late payment is one that is more than three (3) business days after said payment is due.] Borrower agrees to immediately inform the Lender of any change in employment, supplying the name, address and telephone number of any new employer.
5. Acceleration: Any default that is not cured within One Hundred Twenty (120) days shall give the Lender the right to accelerate this Note and to demand payment in full, including unpaid principal and accrued interest.
6. Application of Payments: Unless applicable law provides otherwise, all payments received by Lender shall be applied first, to late charges due under the Note; second to interest; and last to principal due.
7. Loan Charges: If the debt secured by this Note is subject to a law which sets maximum loan charges, and that loan is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the debt exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to the Borrower. If a refund reduces the principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
8. Legislation Affecting Lender's Rights: If enactment or expiration of applicable laws has the effect of rendering any provision of this Note unenforceable according to its terms, Lender, at its option, may require immediate payment of all sums secured by this Note and may invoke any remedies permitted by law.
9. Governing Law; Severability: This Note shall be governed by federal law and the laws of Michigan. In the event that any provision or clause of this Note conflicts with applicable law, such conflict shall not affect other provisions of this Note which can be given effect without the conflicting provision. To this end, the provisions of this note are declared to be severable.
10. Enforcement of Agreement: The parties to this Note agree that any breach of the terms of this Note by the Borrower with respect to the obligation to make payments as provided for herein, shall entitle the Lender to monetary damages, including any attorney fees or costs incurred as a result of such breach. The Borrower expressly agrees that the proper venue for collection on this Note is ______County.
11. Entire Agreement: The Borrower and the Lender agree that this Note represents the entire agreement between the parties hereto. No amendment, deletion, addition, modification or waiver of any provision of this Note shall be binding or enforceable unless in writing and signed by each of the parties hereto.
12. Interpretation of Agreement: This Note shall be governed by the laws (statute and common law) of the State of Michigan. No provision of this Note is to be interpreted for or against any party because that party or that party's legal representative drafted the Note. In case a provision of this Note is held to be contrary to or invalid under the laws of the State of Michigan, such illegality or invalidity shall not affect in any manner the remaining provisions of this Note, all of which shall continue to be effective in the State of Michigan.
13. Copy of Agreement: The Borrower and his co-signer, ______, by signing this Note below, acknowledge that each has received a copy of the Note, has read it and understands it, and that each signs this Note knowingly, willingly and without coercion.
Date:______
______, Borrower
Date:______
______, Co-signer (wife, cohabitant, parent, e.g.)
STATE OF MICHIGAN )
)ss
______COUNTY)
ON ______before me, a Notary Public, in and for said County, personally appeared to me ______and ______, known to by the same persons described in and who executed the within instrument, who acknowledged the same to be their free act and deed. ______
*______, Notary Public County of ______, Michigan
My Commission Expires: ______
Prepared By:
______
______
______
______
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