INSTALLMENT NOTE -- BANK DEPOSIT AS COLLATERAL
TERMS OF NOTE
For value received, __________________ (makers), of
_____________________ (addresses), in this note referred to as makers, promise
to pay to the order of __________________ (financial institution), of
_____________________ (address), _________________ (city), ____________
(county), _________________ (state),
in this note referred to as institution, at
____________________________ (address), __________________ (city), ___________
(county), _________________ (state),
the principal sum of __________________ ($__________)
with interest thereon at __________ percent (__________%) per year in
installment as follows: __________
________________ (amount) ($__________) in
__________ (number) ___________ (monthly) installments of _________________
($__________) each, beginning on _______________ (date), continuing on the same
day of each ___________ (month), and ending on __________ (date).
BANK DEPOSIT COLLATERAL
Makers shall furnish collateral security for the
indebtedness evidenced by this note by depositing with institution on
___________________ (date), __________________ ($__________) for credit to the
personal loan account number __________, in this note referred to as personal
loan account, and an equal amount is to be deposited at regular __________
(monthly) intervals thereafter, until the total sum equal to the face amount of
this note is deposited.
DEFAULT IN DEPOSITS
If makers fail to deposit money as agreed in Section
Two, makers shall pay to institution, as liquidated damages, __________ cents
for each dollar not deposited.
PERSONAL LOAN ACCOUNT AS PAYMENT OF NOTE
When this note matures, by acceleration or any other
manner, institution may apply the amount on deposit in the personal loan
account against the amount owing on this note.
However, makers shall still be liable for any indebtedness represented
by this note that remains unpaid after this application.
SECURITY INTEREST IN OTHER PROPERTY IN POSSESSION OF
As security for the payment of this note and for the
payment of all other debt of any of makers to institution, including debt of
every kind and description, direct or indirect, absolute or contingent, due or
to become due, now existing or hereafter arising, and regardless of how the
debt is evidenced, makers grant to bank a continuing lien on all instruments,
documents of title, policies of insurance, deposits, moneys, or any other
property now or hereafter owned by any of makers now or hereafter in the
possession or under the control of institution.
ACCELERATION ON DEFAULT
This note shall become immediately due at the option
of institution or other holder of this note without demand or notice on the
occurrence of any of the following events: (a) failure to deposit the
appropriate amount in the personal loan account as specified in Section Two;
(b) the death of, dissolution of, or beginning of any action to dissolve any
maker or any indorser of this note; (c) commencement of any proceeding by or
against any maker or any indorser under the federal Bankruptcy Act or any other
present or future state or federal insolvency laws; (d) failure of any maker to
furnish on request of institution additional security satisfactory to
institution for this note within __________ days after demand by institution
for such additional security; or (e) failure to pay any other obligation now or
hereafter owing to institution or any other holder of this note by any maker or
by any indorser.
WAIVER OF PRESENTMENT, PROTEST, AND NOTICE OF
Each maker and each indorser of this note waives
presentment, protest, and notice of dishonor and any other notice that may be
POWERS OF INSTITUTION IN DEALING WITH NOTE
Each maker and each indorser authorizes institution
to do the following without giving notice and without affecting the liability
of any maker or indorser: (a) date this note; (b) fill in any blank spaces in
this note according to the terms on which institution grants the loan; (c)
correct patent errors; (d) cause the signature of one or more additional makers
or indorsers to be added to this note at any time; (e) extend the time of
payment of this note in whole or in part; (f) sell, exchange, surrender, or
otherwise deal with the property now or hereafter securing this note; (g)
assign this note or any security therefor to any other person.
CHOICE OF LAWS
This note shall be governed by and construed in
accordance with the laws of __________________ (state) in all respects,
including matters of construction, validity, and performance.
JOINT AND SEVERAL LIABILITY
The makers of this note shall be jointly and
CONFESSION OF JUDGMENT
Each maker and each indorser of this note authorizes
any attorney at law to appear in any court of record in __________________
(state) or any other state or territory of the United States after this note
becomes due, by acceleration, or otherwise, and admit the maturity of this
note, waive the issuing and service of process, and confess judgment against
each maker or indorser in favor of institution or any other holder of this note
for the amount then appearing due and the costs of collection, including
reasonable attorney fees and legal costs.
Each maker and each indorser shall also waive all errors, rights of appeal,
and stays of execution. This is a joint
and several warrant of attorney.
(Signatures of Makers)