Can this note be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Verify that signer intent, consent to electronic records, signer attribution, and retention/reproducibility requirements are satisfied to preserve legal effect.

What does joint and several liability mean?

It means each obligor may be held individually liable for the entire debt and also jointly liable with other obligors. Creditors may pursue any obligor for full recovery rather than pro rata shares, increasing collection options and exposure for co-signers.

Is notarization required for enforceability?

Not generally required solely for promissory note enforceability, but notarization or witness signatures can strengthen evidentiary weight. If the note secures real property, recording requirements for mortgages or deeds of trust may trigger notarization or acknowledgement requirements.

How do I add additional co-signers after execution?

Addenda or an amendment signed by all existing parties and new co-signers is recommended. Prepare an amendment clearly identifying new obligors and their agreement to be joint and several, and obtain signatures with the same authentication level as the original.

What steps should a lender take after default?

Review acceleration clauses, issue written default notices per the contract, calculate amounts due, and pursue remedies such as collection, foreclosure on collateral, or judgment. Preserve the audit trail and execution evidence for enforcement.

How long should records be kept?

Retain the original signed note for the term plus recommended post-term periods: at least 3 years for tax purposes (IRC §6501(a)), 6 years for HIPAA-related records, and longer where state law or transaction type (real estate) requires it.

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Promissory Note with Joint and Several Liability

Promissory Note with Joint and Several Liability

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PROMISSORY NOTE

$ Principal Sum

Date , 20

FOR VALUE RECEIVED, The undersigned:

jointly and severally promise to pay to the order of:

the principal sum of $ together with simple interest thereon at the rate of percent per annum from the date hereof until paid, payable as follows:

PRINCIPAL

INTEREST

TOTAL AMOUNT DUE

DUE DATE

This note may be prepaid in whole or in part at any time without penalty. Any partial prepayment shall be applied first to the principal installments due latest in time, and the Maker shall remain obligated to pay the remaining principal installments according to the above schedule. In the event of partial or whole prepayment, the interest shall be recomputed to give effect to the prepayments of principal so that interest shall be paid only on the principal balance outstanding at any time.

This is the note referred to in the Installment Purchase and Security Agreement between the same parties of even date herewith and is secured according to the security agreement contained therein.

In the event Maker defaults in the timely payments of principal or interest due hereunder, or in any other obligation of the Installment Purchase and Security Agreement referred to above, the entire then remaining unpaid balance of principal and interest shall automatically become due and payable upon written notice to Maker of such late payment or other default, unless the default is cured within fifteen (15) days of the mailing or delivery of the first notice of late payment or other default.

Such accelerated amount due shall bear interest at the rate of eighteen percent (18%) per annum or at the highest legal rate, whichever is less, from the date of such default until all sums due hereunder are paid. No delay, omission, extension or non-exercise by the Payee or Holder of any rights or remedies hereunder shall constitute a waiver of that or any other right or remedy.

The Makers and endorsers of this note hereby waive protest, demand, presentment, notice of dishonor, notice of protest and rights of exemption and any defense by reason of extension of time or other indulgences granted by Payee or Holder, bind themselves as principals and not as sureties, and promise that in the event suit is instituted with respect to this note to pay any and all costs of collection, including reasonable attorneys' fees.

This note is made in the City of State of Florida, and the execution, delivery and performance hereof is governed by the laws of the State of Florida.

BUYER:

By:

What this Promissory Note with Joint and Several Liability is

A Promissory Note with Joint and Several Liability is a legal promise to repay a loan in which two or more obligors each accept responsibility for the full debt. Creditors may pursue any one obligor for the entire balance, or pursue multiple obligors concurrently. The note sets the principal, interest, payment schedule, default remedies, and any security interests. When executed properly, it creates an enforceable contract; it can be executed electronically consistent with ESIGN and UETA where permitted and where execution requirements are satisfied.

Why parties use a joint and several promissory note

Joint and several language increases creditor protection by creating multiple responsible parties and simplifying collection. It clarifies borrower obligations, reduces the need for multiple enforcement actions, and supports stronger lender recovery strategies while preserving enforceability when electronically executed under ESIGN or state law.

Common users and roles for this promissory note

Typical users include parties to a loan, lenders, and their advisors involved in drafting, signing, and enforcing debt instruments.

Lenders and creditors responsible for loan terms, monitoring payments, and enforcing remedies against obligors.
Borrowers, co-signers, and guarantors who accept joint and several liability and must understand full repayment exposure.
Legal and compliance professionals who draft clauses, confirm governing law, and ensure execution meets statutory requirements.

Key parts of a professional joint-and-several promissory note

A well-drafted note clearly identifies the parties, loan economics, liability allocation, remedies on default, security, and dispute resolution procedures to reduce ambiguity and support enforceability.

Parties

Full legal names for borrower(s) and lender; use entity type for businesses to ensure correct legal identity and enforceability.

Principal Amount

Express the exact dollar amount numerically and in words to prevent ambiguity and support evidence in collection or litigation.

Interest & Payments

Specify interest rate, compounding, due dates, grace periods, and payment allocation rules so calculations and expectations are clear.

Joint and Several Clause

A clear clause stating each obligor is individually and collectively liable enables the creditor to pursue any one obligor for full recovery.

Default Remedies

List default triggers, acceleration rights, late fees, collection costs, and attorney fees to define post-default remedies and costs recovery.

Governing Law & Notices

Name the controlling state law and notice procedures (addresses, electronic consent) to reduce disputes about jurisdiction and service.

Step-by-step: complete and execute the note

Follow these sequential steps to prepare, sign, and preserve an enforceable promissory note with joint and several liability.

01

Prepare document: Draft terms, amounts, and joint-and-several clause clearly.
02

Enter party data: Populate names, addresses, and corporate titles exactly.
03

Confirm authentication: Choose signer verification method per risk level.
04

Execute and retain: Obtain signatures, distribute copies, and store originals securely.

Digital workflow settings to configure

Configure these fields in your e-signature platform to match the note's legal and operational requirements.

Field	Configuration
Authentication	Email link, SMS code, or KBA per risk level
Signature Type	Electronic signature with audit trail or image
Notarization	Select RON workflow or in-person notarization
Audit Trail	Capture IP, timestamp, and signer actions

Technical and integration considerations

Choose platform settings that preserve the PDF integrity and capture a detailed audit trail for enforceability.

Document formats: PDF and Word DOCX supported
Integrations: CRM and storage integrations recommended
Authentication: Use MFA for higher-risk loans

Verify platform certifications (encryption at rest/in transit, audit history) and integrations such as Salesforce, NetSuite, Microsoft 365, or Box for operational continuity and recordkeeping.

Where to send or file the completed note

After execution, route the note to the appropriate parties and preserve copies according to the transaction structure and any security arrangements.

Deliver to lender: Provide signed original or certified electronic copy to lender.
Record security: If secured by real property, record mortgage or deed of trust.
Distribute copies: Send signed copies to obligors and counsel.
Store records: Archive original and audit trail securely for retention.

How this note differs from similar documents

Compare joint-and-several promissory notes with individual notes to understand liability allocation and typical filing differences.

Criteria	Promissory Note (Joint & Several)	Promissory Note (Individual)
Joint Liability
Typical Use	multiple obligors	single obligor
Lender recovery	any obligor liable	only named obligor liable
Security commonality	often secured	secured or unsecured

eSignature vendor pricing and capability snapshot

Below is a concise feature and pricing comparison for common eSignature platforms. signNow appears first per page conventions; verify suitability for HIPAA, notarization, or API needs before purchase.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Common penalties and risks from incorrect or incomplete notes

Late Payment: Increased interest

Acceleration: Entire balance becomes due

Personal Exposure: Co-obligors liable for full debt

Lien Errors: UCC filing mistakes reduce priority

Tax Impact: Incorrect reporting or withholding

Enforceability: Ambiguities lead to litigation

Frequently asked questions about joint-and-several promissory notes

Answers below address common execution, enforceability, and procedural questions encountered when preparing or signing these notes.

Need help? Contact support

Can this note be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Verify that signer intent, consent to electronic records, signer attribution, and retention/reproducibility requirements are satisfied to preserve legal effect.
What does joint and several liability mean?
It means each obligor may be held individually liable for the entire debt and also jointly liable with other obligors. Creditors may pursue any obligor for full recovery rather than pro rata shares, increasing collection options and exposure for co-signers.
Is notarization required for enforceability?
Not generally required solely for promissory note enforceability, but notarization or witness signatures can strengthen evidentiary weight. If the note secures real property, recording requirements for mortgages or deeds of trust may trigger notarization or acknowledgement requirements.
How do I add additional co-signers after execution?
Addenda or an amendment signed by all existing parties and new co-signers is recommended. Prepare an amendment clearly identifying new obligors and their agreement to be joint and several, and obtain signatures with the same authentication level as the original.
What steps should a lender take after default?
Review acceleration clauses, issue written default notices per the contract, calculate amounts due, and pursue remedies such as collection, foreclosure on collateral, or judgment. Preserve the audit trail and execution evidence for enforcement.
How long should records be kept?
Retain the original signed note for the term plus recommended post-term periods: at least 3 years for tax purposes (IRC §6501(a)), 6 years for HIPAA-related records, and longer where state law or transaction type (real estate) requires it.

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