How To Cancel A Promissory Note?
Promissory note acts as an agreement between the borrower and lender in which the borrower promises to return the borrowed money within a specific time or date. Both parties have to sign the promissory note to make it legally approved. Promissory notes are considered as binding contracts which include various information about the loan amount such as due amount, due date, and purpose of writing the promissory note. Promissory note can be cancelled only after receiving the permission of lender. If you would like to cancel the promissory note, then you have to discuss the matter with the promisee or lender to get permission.
You have to negotiate with the promisee to settle the finances, so that you can end the agreement. You should ask for the settlement in writing, but you should consult before settling the payment with the consumer affairs attorney. Both the settlement and promissory note should be shown to the attorney. The promissory note will get cancelled after the confirmation of the settlement with the promisee. A letter for cancellation of promissory note should be written or the attorney will write a letter for you. The letter should contain the details of original note, and it should also announce the cancellation of the original note due to the request from both parties.
The promisee should sign the cancellation agreement in front of the notary. The promisee also has to write “canceled” across the original note. You can use self-inking stamp or rubber stamp to seal ‘canceled’ on the original note. After writing canceled on the note, the signature of the promisee has to be put in the presence of the notary public. You should pay the agreed amount to the promisee as you have promised in the settlement. One copy of the canceled promissory note has to be kept with you for future reference.